Cheaper to go green in place of gas and coal

Courier Mail
Thursday 9/7/2009 Page: 72

BUILDING coal or gas-fired electricity capacity would be more expensive for consumers and more harmful to the planet than a combination of "green" power and a major energy efficiency drive. That is the conclusion of a study by the Institute for Sustainable Futures for the Intelligent Grid, or iGrid, program. The iGrid is a three-year national research collaboration between peak scientific body the CSIRO and five universities including the Queensland University of Technology and University of Queensland.

It is examining the potential for cutting Australia's large per-capita greenhouse gas emissions by curbing its reliance on coal and gas and instead ramping up energy efficiency and building small-scale, local and highly efficient generators, as well as wind farms and other renewable power sources. Researchers began with a pilot study of energy options for NSW and now will work on developing a model for Australia as a whole.

The NSW study found the high costs of building transmission networks for coal and gas-fired power stations were avoided if smaller, more local and highly efficient cogeneration plants were used. Small cogeneration plants powered by solar panels, biomass or other low-emission sources can supply electricity to local residential communities, industrial sites and buildings. Large-scale cogeneration plants can supply a number of nearby buildings or a large industrial complex.

The study found that the most expensive option for meeting electricity demand growth was building coal-fired power stations at a $30.7 billion cumulative cost to 2020. This also would produce the most greenhouse gas emissions. The second most expensive option was building gas-fired capacity, which would have a $29.8 billion cumulative cost.

It said a combination of energy efficiency, cogeneration plants, renewable energy, and a 1000-MW cut in coal-fired capacity by 2015 would be cheaper again, costing $29.3 billion. It would also stash greenhouse gas emissions by seven million tonnes annually compared with the gas-fired power option. The study did not include the impact of a planned emissions trading scheme.