COAL use in energy production has fallen below 75 per cent for the first time in Australian history, lowering carbon emissions and suggesting a trend towards alternative energy.
Carbon emission index monitors pitt&sherry say summer peak energy demands from National Electricity Market (NEM) suppliers have fallen over the past four years in Victoria, the past three years in Queensland and the previous two in NSW and South Australia.
More recently, demand also fell at an increasing rate through February, pitt&sherry consultant Dr Hugh Saddler says.
"The lower peaks have important implications for future spending on network capacity upgrades which, as everyone now knows, have been the main driver of electricity price rises over the past four or five years," he said in a statement on Tuesday.
Since December 2010, electricity produced by coal fired generators fell about 16 per cent, he added.
Coal now produces 74.8 per cent of the electricity supplied to the NEM, renewable sources wind and hydro 12.5 per cent and gas 12.7 per cent.
But Mr Saddler is not sure whether electricity price increases caused the change.
Similar trends have been witnessed in the US, the UK and New Zealand, and as these countries have not "experienced the large price rises seen in Australia ... it is unlikely that price is the main explanation for the changes".
"More fundamental processes beyond price effects appear to be at work," he said.
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