Most countries globally have one common goal; to decarbonize the nation by investing in renewable energy that emissions less or no CO2. Australia has been working on renewable energy for a while, and recent reports indicate its potential. Unlike other countries investing in wind and solar power, the government is popular with green hydrogen energy. Australia features a high potential to become the planet’s powerhouse of green hydrogen energy generation to improve renewables’ availability in the country. New research indicates that if the nation explores the green hydrogen potential, it will be unstopped regarding renewable energy by the end of this decade.
Recently, Fitch Solutions‘ market analyst took a well-detailed study that led him to conclude that non-hydro renewable energy will make up 30% of Australia\s total power by 2030. Non-hydro renewable energy sources from the green hydrogen generation in the country. It also states that the thermal power generation will close earlier than expected because of its inability to compete.
Fitch Solutions has changed its previous claims with these details where the non-hydro renewables were adding to 24.7% to 30% by 2030. The last report came to the public in June after research on the same matter. It forecasts that the country’s non-hydro renewables capacity will rise by 5.5% annually in the coming nine years, resulting in 47.4GW.
However, things will not be suitable for the coal market since the production is likely to fall by 1.2% annually in the next nine years. In addition to that, coal electricity power will decline with time making it hard for coal plants to have economic stability. The thermal energy will drop to make up 62% of the total capacity by 2030. This amount is less than Fitch’s previous report last year, predicting the thermal electric power to match up to 69.3%.
Developers in the country feature a pipeline of green hydrogen projects generating a total power of 30GW. This amount is outstanding compared to some of their competitors, like Germany and the Netherlands, generating over 10GW. These reports come a year after the government set up a $15.32 million budget to boost its hydrogen plants. As of January, it has 65 EOI to export hydrogen from 1250 MW in solar energy and 270MW in wind generation.
Fitch Solutions also highlighted that Australia is one of the leading countries regarding renewable energy price reductions and creating a long-duration storage technology to help renewables grow and address some of the sector’s challenges. In recent months, reports show that the local authorities are offering more investment to advance green hydrogen technologies. In addition to that, Fitch stated that there would be more chances for the green hydrogen sector to unlock more opportunities.