NSW Wind Farms and Greenhouse Gas Savings

The scientific consensus is that Australia, and other

nations, must start to reduce their greenhouse gas

emissions in the next decade if we are to avert the

risk of what the Intergovernmental Panel on Climate

Change refers to as ‘dangerous’ climate change.

Electricity generation is responsible for over a third

of Australian and NSW greenhouse gas emissions,

largely because of a heavy reliance on fossil fuels

in power generation. At present, Australia has the

second highest greenhouse gas emissions per unit of

electricity produced.

Currently, wind energy is generally the cheapest

renewable energy and the only renewable energy

technology with immediate opportunities for large-

scale deployment.

Some have argued that wind farms do not reduce

greenhouse gas emissions, as they believe that coal

fired and gas power will continue to be produced

regardless of how much power wind farms generate.

Energy market experts, SKM MMA, found that due to

the way the NSW electricity market operates, every

additional unit of wind power injected into the NSW

grid ‘almost exclusively’ displaces coal and gas fired

power.

In other words, the power made by wind replaces the

power made by coal or gas and therefore reduces the

greenhouse gas emissions.

Figure 1 shows the yearly greenhouse savings on

average for different sized wind farms in NSW.

NSW wind farms and greenhouse gas savings

This analysis allowed the NSW Wind Farm Greenhouse Gas Savings Tool to be developed. This model allows community and industry to easily calculate the projected greenhouse gas savings from new wind farms in different Precincts across NSW, and ensure a consistent method is used to calculate greenhouse gas savings. NSW Wind Farms and Greenhouse Gas Savings NSW has four wind farms at present. The largest wind farm currently operating in NSW is Capital Wind Farm, which has a generating capacity of 141 megawatts (equivalent to powering around 45 - 50,000 households per annum!) However, NSW has been described as the ‘next frontier’ (Ernst and Young) for renewable energy and wind farms. There are already 20 wind farms, with a combined capacity of around 3000 megawatts, which have been approved or are under planning assessment in NSW. Figure 1 shows the yearly greenhouse savings on average for different sized wind farms in NSW.

Figure 1: Greenhouse Gas Emissions abated in NSW for 150 MW, 500 MW and 3000 MW Wind Capacity

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Financial year ending June

Em

issi

ons

abat

ed (

ton

nes

)

150 MW 500 MW 3000 MW

The greenhouse gas savings from wind farms are massive – a 150 megawatt wind farm can save anywhere between 200,000 tonnes to 600,000 tonnes of greenhouse gases every year and a 500MW wind farm can save from 1,000,000 tonnes to 1,700,000 tonnes of greenhouse gases every year! The amount of greenhouse emissions saved by NSW wind farms will depend on whether the Federal Government introduces the Carbon Pollution Reduction Scheme (CPRS), which will require generators to pay for their greenhouse gas emissions. As gas-fired electricity generation produces less greenhouse gas emissions than coal-fired generation, the introduction of the CPRS will see gas-fired generation become more cost-effective and displace coal-fired generation. In turn, wind farms will start displacing a greater proportion of output from gas plants relative to coal plants. It has been assumed the CPRS will start in 2015.

Figure 1 Greenhouse gas emissions abated in NSW for 150 MW, 500 MW and 3000 MW wind capacity

Note: in the future, if a carbon price is implemented, gas power stations will start to become more cost effective as they have lower greenhouse gas emissions. Wind energy, in turn, will save less greenhouse gas emissions as it displaces more gas fired power. This is why the graph tends to slope downwards after 2015, when it is assumed a carbon price will be implemented.

The table below demonstrates the greenhouse gas savings that

wind power can achieve.

Wind farm size How many houses will it power each year?

What are the greenhouse gas savings?

The average size of a NSW wind farm 150 megawatts

60,000 65,000

200,000 600,000 tonnes per year

A large wind farm 500 megawatts

Around 200,000

Over one million tonnes per year

The approximate total capacity of wind farms with planning approval in NSW in 2010 3000 megawatts

Around 1 .25 million

Over seven million tonnes per year

Table 1 Wind farm output and greenhouse gas savings

Photo: Infigen Energy

How wind power works

Nacelle

Generator

TowerBlades

Hub

Gearbox transmission

1 2 3

4

1

2

3

4

Rotating generator converts wind energy to electricity

Transformer increases voltage for transmission to substation

Substation increases voltage for transmission over long distances

Transmission to the grid

Figure 2 A wind turbine

Figure 3 How wind turbines transfer power to the electricity grid

A wind turbine comprises a tower, topped by an

enclosure called a nacelle, and the rotor, which is the

propeller-like structure connected to the nacelle.

The wind strikes the blades connected to the nacelle

and, due to their shape, they cause the rotor to spin.

When the wind is strong enough, the rotational

energy in the rotor converts to electrical energy

within the generator.

Do you want to see the greenhouse gas savings from a

wind farm in your area?How much power will it

generate?

Find out with the NSW Wind Farm Greenhouse Gas Savings Tool, www. environment.nsw.gov.au/

climatechange/reprecinctresources.htm.

The tool will allow you to easily calculate the projected greenhouse gas savings from new

wind farms in NSW.

The wind industry will also use the tool for planning applications, ensuring a consistent

method is used in calculating greenhouse gas savings.

Published by: Department of Environment, Climate Change and Water NSW

59–61 Goulburn Street. PO Box A290, Sydney South 1232.

Ph: (02) 9995 5000 (switchboard). Ph: 131 555 (environment information and publications requests).

Ph: 1300 361 967 (national parks, climate change and energy efficiency information and publications

requests).

Fax: (02) 9995 5999. TTY: (02) 9211 4723.

Email: info@environment.nsw.gov.au Website: www.environment.nsw.gov.au

DECCW 2010/1002 ISBN 978 1 74293 041 1 November 2010

Printed on 100% recycled paper.