There is a growing demand for innovative renewable energy solutions as the world races to transition away from fossil fuels. For Australia, this is more than an opportunity, but also a responsibility. By exporting solar energy through cutting-edge technologies like international transmission cables and green hydrogen, the country could redefine global energy markets while significantly reducing carbon emissions.
A big solar energy potential
According to the Australian Government’s Geoscience Australia, the nation’s solar resources are among the most abundant in the world, with an average of 58 million petajoules of solar radiation annually—10,000 times the country’s total energy consumption.
There are several factors that contribute to the country’s position as a solar energy leader:
· Geography: With the country’s vast, arid landscapes make it ideal for large-scale solar farms, particularly in regions like Western Australia (WA) and the Northern Territory (NT).
· Government policies: Programs like the Renewable Energy Target (RET) and funding for solar research have boosted the growth of solar infrastructure.
· Technological advancements: Australian researchers have been at the forefront of solar panel efficiency breakthroughs, allowing more energy generation at lower costs.
· Private sector investment: Strong backing from domestic and international investors has spurred the rapid development of large-scale solar projects.
While countries like China and the US dominate total solar capacity, Australia’s solar output per capita far exceeds global averages. Innovations in solar-to-hydrogen conversion and long-distance energy transmission position the country as a pioneer in exporting renewable energy to energy-hungry nations.
The different ways Australia is exporting solar energy
Solar energy export requires innovative methods to overcome logistical and technological challenges. Here are the main ways the country is turning its solar surplus into an exportable commodity:
Direct energy transmission
One of the most ambitious strategies involves transmitting solar-generated electricity directly to other countries via undersea cables. One such project is The Sun Cable project, which aims to export solar energy from Australia’s Northern Territory (NT) to Singapore through a 4,200-kilometer undersea cable. Once operational, it will supply up to 15% of Singapore’s electricity needs.
Exporting green hydrogen
Solar energy can be converted into green hydrogen through water electrolysis—a process powered by renewable electricity. Hydrogen, stored as a gas or liquid, is easier to transport globally than electricity. It can replace fossil fuels in industries like steelmaking, shipping, and aviation, where direct electrification is challenging.
Massive projects, such as the Asian Renewable Energy Hub, aim to use the country’s solar power to produce and export green hydrogen to energy-hungry regions, specifically in Asia.
Exporting solar technologies and expertise
The country also exports its know-how in solar energy tech, such as solar panels and components wherein Aussie researchers are known to be global leaders in photovoltaic (PV) technology. Innovations in battery tech are also enabling more efficient energy storage and distribution.
Benefits of solar energy exports
· Economic growth and job creation: Solar energy exports can generate billions of dollars annually in revenue. Large-scale solar projects and associated export infrastructure can also create thousands of jobs in construction, engineering, and ongoing operations. Moreover, the renewable energy export sector invites significant domestic and international investment.
· Strengthening energy partnerships: Exporting solar energy positions the country as a key energy partner for countries in the Asia-Pacific, which are seeking to reduce their reliance on fossil fuels. Becoming a pioneer in renewable energy exports elevates Australia’s status as a leader in the global energy transition. This could open doors for broader trade agreements and strengthen diplomatic ties.
· Boost global decarbonisation: By supplying clean energy to nations heavily dependent on fossil fuel, Australia can contribute to global carbon emission reductions. Solar-derived green hydrogen and ammonia can also decarbonise sectors like manufacturing, shipping, and aviation, which are difficult to electrify.
· Diversifying the Australian economy: With coal and natural gas exports facing declining demand due to the global energy shift, solar energy provides a sustainable alternative for long-term economic stability. Solar exports also drive advancements in renewable technologies that benefit other economic sectors.
· Enhancing energy security: Solar energy is renewable and predictable, making it a stable export commodity compared to the volatility of fossil fuels. Infrastructure built for export, such as large-scale solar farms and energy storage can also bolster the country’s domestic energy security.
Current and future projects
Below are initiatives that show the country’s commitment to scaling up solar energy production and finding innovative ways to share its abundant resources with the world.
Asian Renewable Energy Hub (AREH)
Located in WA, this mega-project aims to use solar and wind energy to produce green hydrogen and ammonia for export to Asia and beyond. AREH is expected to generate 26 GW of renewable energy and is anticipated to support decarbonisation in heavy industries and shipping in key markets, such as Japan and South Korea.
Renewable Hydrogen Projects
There are also several green hydrogen initiatives, supported by government funding and private investment:
· H2-Hub™ Gladstone: A proposed hydrogen production and export facility in Queensland, focused on supplying markets in Asia.
· HyResource Projects: Multiple hydrogen hubs across the country aim to capitalise on Australia’s solar energy for hydrogen production.
Desert-based solar farms
Large-scale solar farms in arid regions, such as the NT and WA, capitalise on abundant sunshine and open land to generate significant solar power. Expansion of these farms could provide the foundation for increased electricity exports and hydrogen production.
From visionary projects like the Sun Cable and the Asian Renewable Energy Hub to breakthroughs in hydrogen production and solar technology, Australia is redefining its role in the international energy market.
The benefits are manifold: economic growth, job creation, strengthened global partnerships, and significant contributions to global decarbonisation. By investing in solar energy exports, Australia is not only securing a sustainable economic future but also cementing its place as a leader in the global energy transition.
Energy Matters has been in the solar industry since 2005 and has helped over 40,000 Australian households in their journey to energy independence.
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