Report Release: Carbon Zero and Future Energy Hub
The global trend toward a fossil fuel-free future is set. It is driven by binding greenhouse gas emission reduction targets set by international agreements and reinforced by Tasmania’s state legislation mandating local emission reductions targets. For Tasmania, the question is not if it will transition away from fossil fuels, but when and how.
The Future of Energy in Tasmania (FET) report launched on 21 November by Carbon Zero Initiative and Future Energy Hub presents a bold vision for the state: that Tasmania can and should be the first economy in the world to run entirely without fossil fuels, and it sets out a pathway to achieve this. The report builds this path to the state’s energy transition through in-depth analysis of a number of national and, importantly, local sources, including the Australian Energy Market Operator’s 2024 Integrated System Plan, state government priorities and the plans of private business and government planning development.
The FET report identifies Tasmania as well positioned to take up the major economic opportunity in renewable energy. Already the state has a growing reputation as a hub of low-carbon innovation. The report proposes that Tasmania leverages its expertise in hydropower, wind and solar energy to expand clean energy production and become the world’s first carbon zero economy.
In charting Tasmania’s path to a carbon zero economy, the report estimates the energy required to achieve this transition by 2050. Currently, the state is generating almost 100% renewable energy; however, we are still consuming about 60% fossil fuels in our vehicles, heavy industry and commercial businesses. To move away from this dependency on fossil fuel, the report estimates that Tasmania requires at least 21,200 GWh of electricity annually. It calculates a significant increase of projected Tasmania’s energy demand, at least 272% as soon as 2040. Put differently, to create a carbon zero economy, Tasmania requires three more wind farms and one offshore wind farm, three more solar farms, 120,000 more houses with rooftop solar and one big battery or pumped-hydro plant.
To meet this modelled energy demand, the report estimates the investment and number of employees required to deliver renewable energy generation and infrastructure. It projects the total investment in renewable infrastructure will exceed $17.1 billion over 25 years, with most of it occurring within the next decade. Around 66% ($11.3 billion) of this investment is expected to come from private sources. Both public and private investments in renewable energy infrastructure are anticipated to significantly boost regional Tasmania, particularly the northwest and west, where much of it will be developed, according to the national roadmap and state government’s priorities. The infrastructure development is expected to create nearly 10,000 full-time jobs, predominantly in these regions.
The FET report sets out a challenging pathway to carbon zero for the state’s economy, but Tasmania is already some way down this path as Australia’s renewable energy generation leader for many years. The FET report presents a way forward for Tasmania to continue to lead the country and the world in the years to come.
