The break-up of the power utilities and market deregulation has led to lower power prices. On the other hand, governments are mandating targets for renewable sources of energy, emissions trading, power generation standards and environmental regulations. There is uncertainty in the power generation industry as to how to stay in business. To meet greenhouse gas targets we will need innovation all along the energy chain. Examples of innovation can be seen in coal mining and power generation.
Coal mining produces a lot of export income for Australia.
It also produces methane and other greenhouse gases from energy consumption and waste coal oxidation. These emissions can be reduced by using more energy-efficient mining systems, by mine site rehabilitation and by capturing methane, which in turn can produce power. Conventional power generation can be made less greenhouse gas intensive by growing forests, using bagasse for cogeneration, using mine gases to produce power, or burning wastes such as sawdust with coal. Other new power generation systems can make coal more efficient. Gas fuel cell systems may eventually run on gas from coal.