Technical options for a sustainable energy economy

Conservation of fossil fuel can be achieved in two ways - by increasing the efficiency of end use of energy and by increasing the efficiency of energy transformation processes, particularly the process of electricity generation, while continuing to use fossil fuels. The environmental impacts of energy use, and specifically greenhouse gas emissions, may also be reduced by switching between fossil fuels, ie, by substituting a fuel with lower emissions for one with higher emissions. In total, therefore, three broad strategies may be followed to move the energy system towards sustainability: increased end use efficiency; replacement of fossil fuels with renewable energy sources; and increased efficiency of energy transformation and substitution between fossil fuels. It is likely that an optimal path of change towards sustainability will employ some combination of all three of these strategies. The purpose of this report is to bring together available information about the technical and economic potential of a wide range of new and improved technologies, which could be used in Australia in pursuit of each of these strategies. Specifically, estimates are made of the extent to which each technology examined may be able to reduce demand for fossil fuels, and the cost of achieving a specified level of reduction. The data will be used as an input to the modelling of alternative energy futures, which constitutes another important part of the overall study. The analysis is mainly confined to technologies which are proven and commercially available, either in Australia or overseas. However, some attention will be given to particularly promising new technologies which are at the demonstration stage.