As of January 2002, Australia had electric generating capacity equal to 45.3 million kilowatts. Approximately 84% of this capacity was thermal (mostly coal) while 14% was renewables (mostly hydro). Coal-fired generating capacity is primarily located in the eastern part of the country near its coal reserves, while Western and Southern Australia rely on natural gas to fuel their power plants.Though, overall, 85 percent of Australia's electricity is powered by coal. In 2002, Australia generated 210.3 billion kilowatthours (bkwh) of electricity and consumed 195.6 bkwh. The Energy Supply Association of Australia (ESAA) has predicted that consumption will grow rapidly in coming years, rising to 206 Bkwh by 2008, with the majority of growth in consumption concentrated in Queensland , NSW and Victoria.
Prior to 1996, electric utilities were owned independently by states, but 1996 reforms privatized many state-owned utilities. Key to these reforms was the creation of the National Electricity Market (NEM), a wholesale pool operated by the National Electricity Market Management Company (NEMMCO). It serves Queensland , New South Wales , Victoria , Southern Australia , and the Australian Capital Territory via an interconnected national electricity grid. Tasmania , Western Australia , and the Northern Territories are not members of the NEM, although Tasmania is expected to join by 2005 via the Basslink interconnector, a high voltage direct current (HVDC) submarine cable. In November 2002, the government of the state of Western Australia adopted its own plans for reforming its electricity sector by unbundling the state’s regulated utility, Western Power and establishing a wholesale power market by 2005.
In order to reduce pollution of the environment and to meet growing demand, Australia is currently looking towards nuclear energy to generate its electricity in the near future.
