Modelling least-cost technology pathways to decarbonise the New South Wales energy system by 2050

Abstract

Deep decarbonisation pathways can enable the state of New South Wales (NSW) in Australia to reach a net-zero emissions reduction goal and contribute to global mitigation efforts to limit temperature rise to 1.5 °C by mid-century. This paper explores minimum cost solutions for achieving the corresponding greenhouse gas (GHG) emissions reduction target for NSW, using an Australian implementation of the TIMES (The Integrated MARKAL-EFOM System) energy system modelling framework. This paper investigated possible decarbonisation pathways and available technology options to reach the target. It includes both a higher emissions reference case scenario and a scenario implementing the NSW state government's target of net-zero emissions by 2050 under the NSW Climate Change Policy Framework, consistent with the international Paris Agreement on climate change, with available and viable well-developed technologies. The findings show that the NSW energy system can continue its shift from fossil fuels to renewables like solar, wind, and hydro and can entirely phase out coal- and gas-fired electricity generation by 2050. The deployment of zero-emissions technologies along with policy supports are crucial to achieving deep decarbonisation of the NSW economy by 2050. In addition, electrification and energy efficiency improvements play a significant role in the end-use sector's energy consumption reduction in the coming decades. This paper shows that the electricity sector is the dominant contributor to emission reductions up to the year 2030, while transport, buildings, and industry sectors are set to decarbonise later in the projection period (2030–2050) along this least-cost trajectory. However, the NSW government's aspirational target of net-zero emissions by 2050 can be achieved by 2039 by offsetting negative emissions.