Program 2 - RP2.014
Overview
Low-cost reliable green electricity supply is key to the success of low-carbon heavy industry in Australia. Heavy industries (e.g. iron and steel, alumina, cement and lime) are energy-intensive, and energy cost usually accounts for a significant component in the price of the final products. In the future low-carbon factories, hydrogen (water electrolysis), heat (electric arc furnace) and power (machinery and lighting) all rely on affordable and reliable electricity supply. While it is widely recognised that renewable energy resources have large potential to decarbonise the heavy industries, the cost of supplying uninterrupted green electricity remains high (>A$150/MWh) due to the variable nature of renewable energy resources. Therefore, it is critical that we develop an integrated approach to supplying low-cost reliable green electricity to heavy industries. This integrated approach entails a combination of multiple energy balancing methods, including: (i) geographic dispersion of renewable energy resources; (ii) integrated low-cost solar and brownfield hydro storage; (iii) hydrogen or biogas-fuelled gas turbines; and (iv) demand response.
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