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8 Obstacles to Australia's Energy Transformation

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8 Hurdles Australia Faces in Renewable Energy Transformation

Every day, new advances in renewable energy technology are disclosed. Additionally, the cost is falling. Many challenges remain until we can effectively integrate renewable energy into our daily lives. Only 20% of global energy comes from sustainable sources.  

Fortunately, Australia’s energy transformation faces eight difficulties that must be addressed. Recognising the problems is the first step towards a future filled with creativity. This innovation is required if renewable energy is to become the standard in every household. 

In Australia, wind, solar, hydropower, geothermal, biomass, and other renewable energy sources are abundant. It is critical that we employ these resources to address our energy needs. Being aware of the challenges is also vital for making the most of available resources.  

1) Issues with Physical Structure

Renewable energy sources must be widely and commercially exploited to meet the electricity demand. However, the transition will be more difficult due to the requirement for more dependable energy infrastructures on a larger scale.  

There is a significant and persistent infrastructure shortfall in Australia. To meet demand in many future areas, energy infrastructure will require additional investment, maintenance, and stability, just as other types of infrastructure would. 

The growing demand for renewable energy has resulted in better industry transitions, higher household consumption, and increased usage of electric vehicles. When renewable energy is employed on a large scale, the issues with many power grid systems become apparent.

2) The initial setup costs.

Carbon emissions are the leading cause of global warming. Several efforts have been made to increase its use. Meanwhile, price has a significant impact on uptake. The expensive initial setup cost is a crucial obstacle to its widespread adoption. 

Solar and wind power are the most cost-effective sources of energy production. Unlike gas-fired facilities, solar power systems offer significantly lower initial installation costs.  

Setting up a large-scale solar power facility typically costs $2,000 per kilowatt, while a small-scale home system costs approximately $3,700.  

New gas-fired facilities cost $1,000 per kilowatt (kW). The installation costs are quite different. Lenders and investors view renewable energy as risky due to the considerable initial expenditure necessary to develop the system. Conversely, they believe fossil fuels are superior due to their low installation costs. 

3) Renewable energy should be prioritized.

A significant concern is the need for more efficient, cost-effective, and dependable energy storage in Brisbane. Improving the storage system has long been a fundamental problem in producing renewable energy.  

Wind and sunshine are more unpredictable than fossil fuels, making supplies unreliable. As a result, batteries are crucial for owners who want to preserve energy for future use. And to balance out fluctuations in power production.  

Some folks are concerned about how much this technology will cost. It also raises issues of sustainability.

4) The Monopoly in the Nonrenewable Energy Sector

Energy sources that do not contribute to environmental degradation account for most of the market. This complicates things. Solar, wind, and other renewable energy sources compete with the well-established fossil fuel industry. 

Subsidies and other schemes are in place to help the government promote solar energy. However, the government provides substantially higher contributions to the fossil fuel industry. 

The most excellent way to tackle climate change is to use renewable energy. Nevertheless, fossil fuels have existed throughout human history, which indicates that they are firmly embedded in the country’s economy.  

5) Project Approval.

Another major issue is the lengthy approval process for transmission projects. The appropriate authorities decide whether to proceed with a project and determine the extent to which tariffs can cover its expenses. 

Despite countless bids, only a few projects have received approval. Australia must approve many renewable energy projects in Sydney and other states to meet its energy targets. 

Businesses and governments must realize the value of a “capacity market.” The capacity market would reward those who could provide a steady electricity supply for despatch. As a result, it is recommended that firming capabilities be invested in. 

6) Lack of proper understanding

People fear embracing renewable energy technology because they need more knowledge and understanding. Areas with a high population density are likely to have fossil fuel facilities. The company hires locals since it requires a large workforce to operate.  

Installing fossil fuels will result in a significant property tax that will benefit the community. 

As the world’s most significant coal exporter, Australia is blocking the international community from acting to tackle climate change. Following the Paris Agreement of 2015, numerous governments have supported renewable energy investments. As a result, renewable energy is now receiving more funding in those countries than fossil fuels. 

7) There are no rules or restrictions.

Restrictions, subsidies, restrictions, and incentives impede the widespread adoption of renewable energy technology. If the renewable energy business hopes to attract investors, it must have clear laws. The government should pass and implement legislation to support the renewable energy companies in NSW

Corporate lobbying and political pressure are making moving from fossil fuels to renewable energy more difficult. Our innate reliance on fossil fuels is to blame. However, the hazards posed by climate change are having a considerable influence on people’s lives. 

8) Challenges with Technology

However, there are other problems, and decarbonisation of the sector is just one of them. Reducing CO2 emissions in this location is also more challenging due to technical constraints. Modifying feedstock processes can reduce fuel usage by 45 percent. 

It is challenging to generate the high temperatures required for the target industry’s operations using alternative fuels or zero-carbon power. Major modifications would be necessary. 

All industrial processes are linked with one another. As a result, modifying one aspect of the process will always affect the others. More adjustments will be required for this. Because factories span decades, changing the methods would be expensive.  

Energy is required for industrial decarbonisation. Decarbonising the vital industrial sectors’ processes will undoubtedly have far-reaching effects on the electrical grid. Reduced carbon emissions would raise power consumption in the long run. 

Successfully Overcoming Challenges

Economic improvement, cost reduction, and development of renewable energy sources are only possible through collaborative efforts between the public and private sectors. The same approach is now necessary for industrial decarbonisation.  

Energy transition and industrial decarbonisation occur together. The renewable energy sector faces a significant challenge in this regard, which will become very important later on.  

Solar panels and other sources of renewable energy are increasingly popular in Australia. This began when the country decided to prioritize renewable energy. The world’s energy supply networks are rapidly changing due to numerous groundbreaking green energy developments. 

This news has significant implications for the planet’s sustainability and survival. Regardless of the hurdles, we must achieve our energy production goals. We can’t keep burning those dirty fossil fuels.