the changing face of electricity generation.

In the weekend AFR (page 19), there was a good piece titled "Who turned off the lights". The article was regarding the changing structure of electricity generation in Australia. The graph below appeared in the AFR.

Of most interest to fellow AJQ holders:

* Demand for gas continuing to grow (see graph).
* There are now more than 1 million homes in Australia with solar panels on the roof, creating infrastructure problems.
* $11 billion is spent annually upgrading networks but demand is actually falling, electricity demand down 5% in 2012, which equates to 12,000 gigawatts of reduced demand.
* One in five homes in South East Queensland now generate half its power needs via solar.
* The problems that networks face is the solar customers don't have decent size bill or have a zero bill, use the grid as a battery and pump electricity back into the grid but the electricity companies still supply all the network infrastructure but don't earn any income...
* Renewable energy sources are replacing coal fired generation quicker than expected.
* Coal fired power stations won't be closed, due to the high cost of closure, such as the removal of all the asbestos in the stations which were built in the 1950's - 60's. Its easier and cheaper to run these stations on a skeleton staff and provide energy during peak demand periods only.
* Demand for gas will grow in QLD, with the LNG plant in Gladstone coming online in 2015.
* Gas seen as a clean energy source.
Out of the electricity generation fuel type (see graph), general view that coal will have to come out of the supply chain to help meet emission targets and the other sources will become more and more important to the industry.

Talk about building a company and a resource in a growing and pro market.