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.
Project Details
The overall aim of the Green Electricity research is to develop an integrated approach to supplying low-cost reliable green electricity to Australia’s heavy industries. This project, as a pilot study of the Green Electricity research, aims to understand how different energy balancing methods can help reduce the cost of green electricity supply, and to what extent. In particular, we are interested in understanding how geographic dispersion of renewable energy resources can benefit green electricity supply by smoothing out the variability in renewable energy resources. It will be focused on developing a new modelling framework that can integrate multiple energy balancing methods into high-resolution energy modelling.
The modelling framework includes Geographic Information System (GIS) analysis, cost model development, energy balancing model development, and scenario analysis for the three WA regions: Pilbara, the Mid-West, and the South Region. Through high-resolution modelling of renewable energy generation, storage and transmission over its lifetime, this project will work out how various energy balancing methods can be strategically integrated into variable renewable energy resources resulting in low-cost reliable green electricity supply.
Research Areas
Blending of alternative low-carbon fuels for current high temperature processes
Outcomes
Project RP2.014 analysed energy generation and balancing methods and their impact on cost reduction to develop insights into industrial power solutions. The research includes scenario analyses for Roy Hill’s mine in the Pilbara, South32’s Worsley alumina refinery and AdBri’s Cockburn Cement plant in Kwinana.
The project’s key findings include:
- 24/7 electricity supply: On-site solar photovoltaics and lithium-ion batteries can support continuous operations while delivering significant emission reductions for heavy industry.
- Cost competitiveness: Falling solar and battery costs are making green electricity increasingly competitive. When the cost of emissions ($80–$420/t CO₂-e over time) introduced by the Australian Energy Market Commission are added to the cost of natural gas-fired power, solar and battery electricity systems offer a more cost-effective green alternative.
- Grid integration and load flexibility benefits: Connecting to the grid and optimising load profiles can further lower electricity costs and enhance system reliability, supporting practical zero-emission transitions in heavy industry.
Published Scientific Papers
- Lu B, Thomson CJ, Wang S, Rahbari A, McArthur L, Liu A, Pye J, Decarbonising heavy industry operations with low-cost onsite photovoltaics and battery storage, Solar Energy, Volume 303, 2026, 114104.