Unlocking industrial decarbonisation through integrated land-use planning
Decarbonising heavy industry will require a significant increase in renewable electricity generation and transmission infrastructure.
Getting this energy build-out right is critical to Australia’s industrial future, productivity and competitiveness. At the same time, it is important that renewable energy development occurs in a way that protects biodiversity, supports agricultural production and delivers benefits for regional communities. Climateworks Centre analysis presented in this policy brief shows that these objectives can be achieved together.
Yet current energy planning arrangements are not well equipped to deliver these outcomes. Planning is often fragmented across agencies and sectors, with energy, nature, agriculture and community objectives considered separately. This can contribute to land-use conflict, lengthy approval processes and delays to renewable energy deployment, creating uncertainty for industry and investors.
This policy brief demonstrates how integrated regional energy planning can help overcome these challenges. Using Climateworks’ spatial land-use modelling and Gladstone, Queensland, as a representative industrial case study, it shows how future energy demand can be met while managing competing land-use priorities and supporting economic and environmental outcomes.
The modelling finds that Australia can deliver the renewable energy needed for industrial decarbonisation while protecting nature and creating economic opportunities for communities:
- For only 1 per cent more in system costs, Queensland can protect high-value biodiversity areas while delivering the renewable energy infrastructure needed to meet growing electricity demand.
- Between now and 2050, Queensland landholders could gain at least $1.2 billion by hosting renewable generation infrastructure, helping to stabilise seasonal cash flow and diversify income. Additionally, there could be a further $300 million from transmission hosting and $320 million from community benefit agreements.
- Farming can continue to grow to meet the needs of the population, with less than 0.2 per cent of agricultural production impacted, mostly because renewable energy projects can coexist with farming, particularly beef grazing.
To accelerate industrial decarbonisation while improving land-use outcomes, Climateworks recommends:
- Developing Industrial Precinct Energy Plans (IPEPs) for major industrial regions to align future energy demand and supply, and identify opportunities for industrial flexibility and transmission planning. These could also provide greater certainty for industry and investors.
- Introducing scenario-based spatial modelling in energy and land-use planning, alongside data capabilities to inform evidence-based decisions on renewable energy and transmission development. This would also include identifying the most suitable locations for future infrastructure.
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