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Energy scenarios for Australia under carbon pricing and implications for the Hunter. Energy Transformed Flagship. Paul Graham Carbon Futures Theme Leader Exploring the Future Energy Role of the Hunter Region 15 June 2011. Presentation outline. Carbon price range
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Energy scenarios for Australia under carbon pricing and implications for the Hunter Energy Transformed Flagship Paul Graham Carbon Futures Theme Leader Exploring the Future Energy Role of the Hunter Region 15 June 2011
Presentation outline • Carbon price range • Changing perspectives on the impact of carbon pricing on coal demand • Australia’s power sector • Transport fuel opportunities
Carbon price profiles Source: Adapted from Commonwealth of Australia (2008)
Modelling found Australian coal production will grow with and without a carbon price – How? Answer 2: CCS becomes large part of electricity generation mix Answer 1: Developing country demand to hold up Source: Adapted from Commonwealth of Australia (2008)
Next 10-20 years – coal demand may be supported by developing country demand Contraction & convergence towards common emission per capita target One of many possible abatement sharing arrangements Allows for developed countries to continue to increase emissions in the medium term Source: Garnaut Review (2008), Commonwealth of Australia (2008), CSIRO analysis
International electricity generation – CP-Low Source: CSIRO projection
Levelised Cost of Energy – CP-Low Source: CSIRO
Australian electricity generation CP-Low Source: CSIRO projection
Australian electricity generation – CP-High Source: CSIRO projection
Transport • Hunter • Small to mid-sized cities • Low density • High passenger vehicle use • Significant rail freight • GHG and energy saving opportunities in this region will need to suit the car and rail freight
Transport fuel consumption CP-Low Biofuels, electricity & LNG likely to expand
Point where electric vehicles are broadly emission saving Light vehicle fleet average ~215 gCO2e/km Source: Assume 0.18kWh/km times retail electricity emissions intensity, ALPF & Green Vehicle Guide
Key messages • In facing a potentially carbon constrained world coal trade may still continue to expand • Developing country demand may continue if they successfully argue to allow their emissions to rise for a period • If successful, coal with CCS will allow coal to deliver low emission base load power • Other local opportunities • Renewable technologies and research • Vehicle electrification, HFR, biofuels, roof-top solar
Paul Graham Carbon Futures Theme Leader Phone: +61 2 49606061 Email: paul.graham@csiro.au Thank you Contact UsPhone: +61 3 9545 2176Email: Enquiries@csiro.au Web: www.csiro.au