Hello, I'm Konagaya, the CEO of Rera Tech Inc.
I'm visiting Tohoku on a business trip, and the mornings and evenings are getting colder and it feels like winter is already approaching (or maybe it's still too early).
The topic we will introduce this time is"Australia's Energy Policy and Wind Power Market".
Trends in wind power generation not only in Japan but also overseas are often reported in the news, but due to my lack of knowledge, I have never heard any information about Australia. However, recently, I feel like I have had more opportunities to hear new news about offshore wind power generation in Australia.
So we looked into Australia's potential for the wind power market and the changes currently occurring.
Australia's potential
Unlike Japan, Australia is a country blessed with domestically produced energy resources (fossil fuels, uranium, etc.). In particular, it is a major exporter of energy fuels such as coal and natural gas, and as of 2021, it has the third largest trade balance in the world (-3 Mtoe). (Figure 296)
By the way, Japan is the second largest importing country in the world with +357 Mtoe.
Figure 1 Total energy trade balance by country in 2021 (Mtoe)
In Australia, the majority of energy consumption is generated by thermal power (2020% in 2021-92.0), with renewable energy accounting for only 8%. Of this, renewable energy consists of solar power, wind power, hydroelectric power, and biomass power (Figure 2).
Figure 2. Trends in energy consumption by fuel type in Australia (left) and renewable energy power generation by fuel type (right)
Australia has vast land and ocean areas and is thought to have great potential for utilizing natural energy, but in reality, it appears that decarbonization has not yet progressed sufficiently.
They are also cautious about using their abundant uranium for nuclear power generation as a trump card for decarbonization. This has been the case even before the nuclear accident in Japan in 2011, so when you compare this with the current discussions in Japan about restarting nuclear power plants, I find the difference in their stances on nuclear power very interesting.
Another area where Australia has potential is its high wind speeds.
High wind speeds are considered one of the favorable conditions for wind power projects, and even a simple comparison of the annual average wind speeds in Australia and Japan near the proposed sea area, as shown in Figure 3, shows that the wind conditions in Australia are better than those in Japan. Moreover, Australia has a vast ocean area.
Figure 3. Distribution of annual average wind speed near Noshiro Port in Japan (left) and off the coast of Gippsland, Australia (right)
Recent trends in Australia
The Australian government has designated Bass Strait off the coast of Victoria as the first area for offshore wind power development in 2022. (Figure 4) Maps showing details of the area have been made available to the public, and public comments on the development are currently being solicited.
Figure 4. Map of potential offshore wind development areas off the coast of Gippsland, Australia
And in New South Wales, located right next to Victoria, there are also movements related to offshore wind power.
Power generation and storage projects have been announced for the Illawarra Renewable Energy Zone (REZ) for 2022. Public comment received 44 expressions of interest, eight of which are for offshore wind farms.
The state is also currently attracting hydrogen production and power generation projects, and I got the strong impression that the state is placing importance on the development of "green hydrogen," a combination of renewable energy and hydrogen.
Australia is considered to be in the Asia-Pacific region, the same as Japan, and due to these various factors, I believe it will attract even more attention as a promising offshore wind market in the future. In fact, there have been a series of reports of European companies entering the Australian offshore wind market.
On the other hand, there are reports that Japan is no longer as promising a market as it once was for overseas wind turbine manufacturers due to the stricter and longer required processes, and there are concerns that the Japanese market will become isolated and become like a Galapagos.
Through this research, we came to the conclusion that in order for the offshore wind power market in Japan to grow, it is urgent to shape the market not only from a technological perspective, but also from such socio-economic perspectives.
As wind condition consultants, Rera Tech Inc. will conduct optimal wind condition surveys that combine "observation" and "estimation" for wind power generation. Please feel free to contact us if you have any inquiries regarding wind conditions.
