Renewable vs. non-renewable energy: What’s the difference?

Energy keeps the world running, from powering homes to fueling industries. But where that energy comes from — and how long it will last — matters.

Australia is in a prime position to lead the renewable energy shift. With solar resources, growing wind power capacity and reliable hydropower, clean energy is already reshaping the country’s electricity mix. These sources reduce emissions and also offer a long-term solution for meeting energy needs without significantly depleting natural resources.

Fossil fuel resources, on the other hand, come with an expiration date and a heavy environmental cost. Coal still dominates Australia’s electricity grid, natural gas plays a major role and oil dependence drives imports. The problem? Coal, oil and gas are the biggest contributors to greenhouse gas emissions, accelerating climate challenges.

The future, however, isn't about choosing between the two; it's about clever, sustainable solutions. That's when Beca steps in. We help businesses and communities negotiate the energy transition by balancing innovation with real-world reality. By integrating renewables and improving current infrastructure, we're shaping the energy transition for a brighter future.

What is renewable energy?

In contrast to fossil fuels, which gradually run out, renewable energy is derived from naturally replenishing sources such as sunlight, wind and water flow. Homes, businesses and entire economies may be powered by these resources in a cleaner, more sustainable manner.

Renewable sources generated just over 30% of the world's electricity in 2024, and this figure is still climbing as energy infrastructure and technologies improve¹. Renewables now account for 39% of Australia's electricity mix, thanks to improved grid connectivity, lower costs and supporting legislation². Renewables are becoming an increasingly essential part of long-term energy planning as energy usage rises and pressure to minimise emissions grows.

Australia’s key renewable energy sources include:

• Solar power – With abundant sunshine and vast open spaces, Australia is a solar goldmine, turning sunlight into electricity through solar panels.
• Wind energy – Already making a big impact, wind power is on track to generate half of Australia’s electricity by 2030³.
• Hydropower – A steady, reliable source, hydropower currently supplies 7% of the nation’s energy, using flowing water to spin turbines⁴.

Renewables slash greenhouse gas emissions, helping fight climate change while creating a more secure and cost-effective energy future. The shift is happening — and it’s happening fast.

What is non-renewable energy?

Non-renewable energy comes from resources that take millions of years to form. Once we use them, they don’t replenish — at least not in our human timeframe. These include fossil fuels like coal, oil and natural gas. While they’ve powered industries and homes for over a century, their supply is shrinking, and the environmental cost of burning them is growing.

Right now, over 80% of the world’s energy still comes from non-renewables⁵. In Australia, they dominate the energy mix:

• Coal – Fuels 54% of electricity generation and is backed by reserves that could last another 90 years⁶.
• Natural gas – Powers 33% of Australia’s energy and is in high demand for export⁷.
• Oil – Essential for transport (possibly in transition with future EV adoption), but domestic reserves are limited, increasing reliance on imports.

Burning fossil fuels causes greenhouse gases to enter the atmosphere, and this exacerbates the issue of human impact to climate change. Extracting them can destroy entire ecosystems and contaminate soil, air and water in the larger area. The challenge is clear as the demand for energy rises: How can we reconcile urgent energy requirements with a future depending on more sustainable solutions?

Major differences between renewable and non-renewable energy

Both renewable and non-renewable energy sources are shaping the way we power the world. Renewable energy is the future, but making it the dominant power source isn’t that simple. Scaling up requires major investment — better storage solutions, smarter grids and upgraded infrastructure to handle supply fluctuations.

At the same time, fossil fuels like coal and natural gas still do the heavy lifting, providing the reliability industries and economies need. The challenge isn’t just replacing them — it’s building a system that balances stability with sustainability, helping the energy supply remain both dependable and clean. For Australia, that means driving innovation, strengthening energy security and cutting emissions — all without compromising reliability.

Renewable energy resources in detail

Source: Change Oracle


Australia’s move toward sustainability is driven by its rich supply of the following energy sources:

Solar power 

With some of the highest solar radiation levels in the world, Australia is making big strides in solar energy. Photovoltaic (PV) systems are playing a major role in reducing reliance on fossil fuels, while solar thermal technology is expected to also contribute in the near future, as per CSIRO’s Renewable Energy Storage Roadmap⁸.

Solar power at a glance:

• 27.3% of Australia’s renewable energy comes from solar PV⁴.
• Small-scale solar grew by 17% in 2023, averaging 21% growth per year since 2015⁴.
• Large-scale solar now generates 6.3% of the country’s electricity⁹.
• Over 2.7 million rooftop solar systems have been installed across Australia¹⁰.

Government incentives still drive solar adoption, hence it's a major factor in the change of energy consumption in the nation. Solar power accounted for 16% of all generated electricity in 2023; with more investment and a ramp of energy storage deployment, that figure is very likely to climb¹¹.
 

^{Wind power}

Australia’s strong, steady winds — especially along the southern coastlines and the Roaring Forties wind belt — make it an ideal location for wind energy. As one of the most cost-effective renewable sources, wind power is expected to drop below $50/MWh, making it even more competitive³.

Today, wind energy generates about 7% of Australia’s electricity, making it the second-largest renewable source after solar¹². Major wind farms, like Hornsdale and Snowtown, add hundreds of megawatts to the grid, often at times when solar output is low.

Wind power at a glance:

• Affordable: As costs drop, wind energy is economically competing with fossil fuels.
• Reliable: Strong coastal winds keep power generation steady.
• Supports the grid: Wind farms help balance supply when solar output is low.

Improved technology and continuous investment will help wind energy to become even more important in Australia's future clean energy scene.

Hydropower

Hydropower is a steady, reliable part of Australia’s energy mix, supplying about 6% of the country’s electricity². It harnesses the power of moving water to spin turbines and generate electricity. The Snowy Mountains Hydro-Electric Scheme is the biggest player, providing a significant share of the nation’s hydroelectric capacity¹³.

Thanks to great rainfall and hilly terrain, Tasmania leads the way with over 80% of its electricity derived from hydro¹⁴. The catch is that output can be affected by rainfall variations, hence a varied mix of renewable energy sources is necessary for long-term energy stability.

Hydropower at a glance: 

• Pumped hydro projects assist in balancing supply and demand by storing energy through the movement of water between reservoirs.
• There are more than 120 hydroelectric facilities in operation in Australia, ranging in size from small community projects to massive stations¹⁵.
• Many hydropower plants can operate effectively for more than 50 years with proper maintenance.
• Hydropower will remain vital in Australia's renewable energy future as long as pumped hydro and technological improvements receive continuous investment.

Geothermal energy

Geothermal energy taps into heat from beneath the Earth’s surface, offering a 24/7 renewable power source with minimal emissions. Australia has strong potential for geothermal development, particularly in high-temperature zones like South Australia. Though still in its early stages, this technology could become a key player in the country’s renewable energy mix.

With Australia’s favourable geology, efforts are underway to establish geothermal as a reliable, low-emission energy option. As research and investment grow, geothermal power could provide a sustainable solution for regions with naturally occurring underground heat, and become a key part of Australia’s clean energy future.

Geothermal energy at a glance:

• Some of the highest known subterranean temperatures in South Australia come from its Cooper Basin.
• Unlike solar and wind, geothermal offers continuous energy independent of weather conditions.
• By artificially stimulating hot rock reservoirs, enhanced geothermal systems (EGS) aim to extend geothermal potential¹⁶.

Source: New Atlas

Biomass energy

Biomass energy turns organic waste — from agriculture, forestry and cities — into heat and electricity. Right now, it makes up 1.4% of Australia’s electricity, but as waste-to-energy technology improves, that number is expected to grow¹⁷. By repurposing materials that would otherwise end up in landfills, biomass helps tackle waste management and renewable energy challenges at the same time.

Since the CO₂ released during biomass energy production is offset by the carbon absorbed while the plants are growing, it’s considered a carbon-neutral energy source. With better technology and smarter waste policies, biomass could become a bigger part of Australia’s clean energy mix.

Biomass energy at a glance:

• Biogas from organic waste can be used for electricity, heating and transport fuel.
• Australia has over 25 operational biomass power plants, with more in development¹⁸.
• Sugarcane waste (bagasse) is one of the most common biomass fuel sources in Australia.
• Biomass can be co-fired with coal in power plants, reducing fossil fuel reliance.

Source: Climate Scorecard


While renewables are growing fast, non-renewable energy still plays a major role in Australia’s power mix. That’s largely because the country has a well-established infrastructure and strong export markets for these resources. Coal, natural gas, oil and uranium continue to supply much of Australia’s energy — both for domestic use and global exports. 

Let’s break down how each of these fuels contributes to the energy landscape.

Coal

Coal has been a cornerstone of Australia’s energy sector for decades, fueling power plants, heavy industries and global exports. Formed over millions of years from compressed plant material, it’s packed with carbon-rich energy, making it a powerful but highly polluting fuel source.

Even as renewables gain ground, coal still generated 46% of Australia’s electricity in 2023¹⁹. The country’s vast reserves support both local power needs and a booming export market, with black coal exports reaching 89 million tonnes in 2022-23²⁰. While coal remains a key economic driver, it’s also one of Australia’s biggest carbon emitters, making its future role a major challenge in the shift toward cleaner energy.

Key facts about coal in Australia:

• Australia is the world’s second-largest coal exporter, after Indonesia²¹.
• Most black coal exports go to Asia, fueling power plants in countries like Japan, China and India²¹.
• Brown coal (lignite) is used mainly for domestic power generation, as it’s less energy-dense and harder to transport.
• Coal-fired power plants are gradually closing, with major retirements planned over the next two decades.
• Carbon capture technology is being explored to reduce coal’s environmental impact, but adoption remains slow and the economic challenges behind it are unlikely to be resolved.
• As Australia ramps up renewable energy, coal’s role is shifting — but for now, it remains a major player in both the energy grid and the mining economy.

Natural gas

Natural gas is a versatile fossil fuel, mainly made of methane, that powers homes, industries and the electricity grid. Extracted from deep underground, it’s used for heating, manufacturing and generating electricity. In Australia, natural gas meets about 25% of the country’s total energy needs, including 20% of electricity generation and 42% of industrial energy use¹⁹.

Because it is more rapidly dispatchable than coal, natural gas helps stabilise the grid, especially during peak demand periods. But its role goes beyond domestic supply — Australia is one of the world’s top exporters of liquefied natural gas (LNG), shipping over 81 million tonnes annually to major markets in Asia²².

Key facts about natural gas in Australia:

• Australia is the world’s second-largest LNG exporter, behind the U.S²³.
• Western Australia produces the most natural gas, supplying both domestic and export markets.
• LNG exports bring in billions annually, making gas a major economic driver²⁴.
• Gas-fired power plants are faster to start up than coal, making them useful for grid stability.
• New gas projects face increasing scrutiny, with debates over environmental impact and long-term viability.
• As Australia moves to use more green energy, the taper down of natural gas for electricity generation must be planned carefully. It helps keep the energy supply steady while cleaner energy sources grow. As worries about emissions and the environment increase, the future of this technology will rely on improvements in low-carbon technologies and energy policy choices.

Source: Canberra Times

Oil

Oil is a key fuel source, refined into gasoline, diesel and jet fuel to power transport and industry. In Australia, it supplies 39% of the country’s total energy needs, with most of it used in cars, trucks, ships and planes²⁵.

There's a national security and economic concern though: Australia's oil supplies are getting low. Now importing over 95% of its refined oil, the nation depends further on foreign sources as large offshore reserves approach depletion²⁶. Some supplier nations use imports/exports of oil (and the tariffs on them) to their strategic advantage. Although Australia still generates and exports some crude oil, refining is currently primarily done abroad, which raises questions over long-term sustainability and energy security.

Key facts about oil in Australia:

• Oil reserves in Australia are expected to last only a few more decades at current production rates²⁷.
• The country holds only 68 days’ worth of fuel reserves, raising concerns about supply disruptions²⁸.
• Global oil price fluctuations directly impact Australia’s fuel costs, due to heavy reliance on imports.
• Australia has no strategic oil reserve, unlike many other developed nations²⁹.

There's a growing need for Australia to reconsider its fuel strategy in light of growing environmental concerns and increasing reliance on imports. To wean itself off of foreign oil and embrace modes of transportation with lower emissions, the nation is looking into electric vehicles (EVs) for pedestrian/truck travel and biofuels for shipping/air transport.

Nuclear energy

Nuclear energy generates electricity by using controlled reactions from uranium fuel. Australia doesn’t produce nuclear power itself, but with almost 30% of the world’s uranium reserves, it’s a key supplier for countries that do³⁰. These exports support international clean energy goals, providing a stable, carbon-free alternative to fossil fuels.

Key facts about nuclear energy in Australia:

• Australia is one of the world’s top uranium exporters, supplying fuel for global nuclear reactors.
• Uranium mining is concentrated in South Australia and the Northern Territory, home to major deposits.
• Nuclear power is banned in Australia, despite ongoing debates about its potential role in the energy mix³¹.
• Countries like France, the U.S. and China rely on Australian uranium to fuel their reactors³².

Australia doesn’t use nuclear power, but the uranium it exports keeps reactors running around the world, offering a lower-emission alternative to fossil fuels. For many countries, nuclear power is a reliable, long-term energy source, helping them cut emissions and secure stable power. The challenge of cost and timing to bring new nuclear generation online elsewhere in the world has been a driving factor in the slowdown of new builds worldwide. In Australia, the debate over whether it should be part of the energy mix is still very much alive. 

Beca’s role in the shift to smarter, cleaner energy

Source: Jason Mavrommatis


Switching from fossil fuels to renewables goes beyond cutting emissions — it also comes with a whole range of benefits. While renewable energy requires an upfront investment, the long-term payoff is hard to ignore: lower energy costs, a cleaner environment and a more reliable supply of fuel for electricity generation. As technology improves and costs keep dropping, making the shift isn’t just good for the planet — it’s a smart move for the future.

At Beca, we help organisations cut through the complexity and move forward with confidence. Whether it’s harnessing renewables, upgrading infrastructure or designing smarter energy solutions, we bring the knowledge and experience to make the transition seamless, practical and built to last.

Let’s build a cleaner, greener future together. Contact us to explore how we can support your journey toward sustainable energy.




 

Sources

1. The Guardian - Renewable energy passes 30% of world’s electricity supply
2. Clean Energy Council - Clean Energy Australia 2024
3. Anávo - The Rising Power & Potential of Wind Energy in Australia
4. Australian Government | Department of Climate Change, Energy, the Environment and Water - Renewables
5. National Geographic - Nonrenewable Resources
6. Australian Government | Department of Climate Change, Energy, the Environment and Water - Australian Energy Statistics, Table O Electricity generation by fuel type 2019-20 and 2020
7. Australian Government | Department of Industry, Science and Resources - How Australian gas is used today
8. Csiro - Batteries won't cut it – we need solar thermal technology to get us through the night
9. Clean Energy Council - Large-Scale Solar
10. Climate Council - Seize The Sun: How to supercharge Australia’s rooftop solar
11. Australian Government | Department of Climate Change, Energy, the Environment and Water - Australian Energy Statistics, Table O Electricity generation by fuel type 2022-23 and 2023
12. Arena - Wind Energy
13. National Archives of Australia - Snowy Mountains Hydro-Electric Scheme
14. Tasmanian Government - Renewable Energy Tasmania
15. Arena - Hydropower in Australia
16. ScienceDirect - Enhanced geothermal systems (EGS): A review
17. ScienceDirect - Bioenergy siting for low-carbon electricity supply in Australia
18. database.earth - Biomass Power Australia
19. Australian Government | Department of Climate Change, Energy, the Environment and Water - Australian Energy Update 2024
20. Australian Government | Geoscience Australia - Coal
21. Australian Government | Geoscience Australia - Australia's Energy Commodity Resources 2024, Coal
22. Australian Government | Department of Industry, Science and Resources - 6. Remaining a reliable trading partner for LNG and low-emissions gases
23. Australian Government | Geoscience Australia - Australia's Energy Commodity Resources 2024, Gas
24. Statista - Value of liquefied natural gas (LNG) exports from Australia from financial year 2014 to 2024
25. Australian Government | Department of Climate Change, Energy, the Environment and Water - Energy Consumption
26. Australian Government | Geoscience Australia - Australia's Energy Commodity Resources 2024, Overview
27. Australian Government | Geoscience Australia - Oil
28. The Australia Institute - Addressing Australia'a Liquid Fuel Security 
29. Australian Government | Department of Climate Change, Energy, the Environment and Water - Australia's fuel security
30. World Nuclear Association - Australia's Uranium
31. Herbet Smith Freehills - Is Nuclear Power the solution to Australia's Energy Transition?
32. Minerals Council of Australia - Realising Australia’s uranium potential