The paper "Energy Industry in Australia" is an outstanding example of a business case study. Australia is ranked as the world 20th largest consumer in the energy sector. The country is endowed with vast energy reserves which enables it to play a major role in supplying world energy needs. Australia is the leader in the export of coal and among the largest exporters of Uranium. The country was ranked sixth in the exports of the Liquefied natural gas (LNG). Australia is estimated to hold more than 38% of the world reserves in uranium, 9% of the coal deposits as well as almost 2 % of the world natural gas resources (BREE, 2012a).
The country has a high potential for renewable energy due to the high number of sunlight hours. There are also other sources of renewable energy such as wind, wave energy and geothermal (Falk & Settle, 2011). However, climate change is a big challenge in the sector due to the rising risks brought about by energy being used. The main challenges facing the energy sector in Australia is facing are sustainability, dependence on fossil fuels, increasing climate change and its effects, and an increase in global fuel prices.
This report will analyse the Australian energy industry by looking at its current state, strategic challenges, sustainability and the major stakeholders in relation to climate change. The report will then analyse the possible strategic responses and the preferred approach. Lastly, the report will analyse the timeline of the measures and strategies used in the energy industry. The energy industry in Australia According to Falk & Settle (2011), Australia has an abundance of energy which acts as a major contributor to the country economic prosperity.
The energy sector in Australia supports a lot of the country industries which acts as a source of employment and helps in infrastructure. The energy is also a major source of the country export value. As the country’ s economy grows and the population increases, the demand for energy in the country has increased (Falk & Settle, 2011). The country has been using fossil fuels to meet most of the country energy needs. This is due to the fact that Australia has abundant coal resources which have helped in generating more than three-quarters of the country energy needs.
The transport sector in Australia depends on oil which the country has to export in some cases. The national policies in the country have enabled the expansion of the Australian energy industry. The energy sector in Australia has been affected by the changes related to climate change. The industry has put in place transformational changes that are aimed at reducing green gas emissions. At the moment, the energy industry in Australia has high carbon dioxide (CO2) emissions amounting to half of the total country release.
This has led to the stakeholders adopting sustainability strategies in the energy industry (Zahedi, 2010). Challenges and strategic responses As climate change, the energy sector is supposed to be able to adopt sustainability measures through a strategic approach. Sustainability in the energy sector involves shifting from the heavy dependence on fossil fuels and moving towards technologies that aimed at reducing the carbon emissions (Solangi et al. 2011). One of such technologies is the use of renewable energy and utilising carbon capture and storage.
At the moment, the renewable energy sector in Australia accounts for about 5% of the primary energy consumption and almost 7% of the electricity generation (Syed et al. 2010). The country has also drafted an energy policy that is aimed at boosting the renewable energy sector. Despite this, the sustainability of the energy industry faces challenges.