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Worldwide demand increases prices at home

Queensland facing energy shortfall 16000646 800467745 0 0 14028800 300

As the profits of Australia's resources sector are made public, locals are seeing the real costs of the boom and its impact at home and abroad on the economy.

What many everyday Australians don't realise is that overseas demand for our resources can impact their bottom line by increasing the cost of their energy bill.

The follow-on effect for electricity prices has been highlighted in a new report titled An Efficient, Productive and Sustainable Electricity Supply for Queensland.

As stated in the report: "The cost of coal, gas and other fuel sources used to produce electricity has increased significantly over the past five years and will continue to increase into the future due to growing world demand for resources."

The findings highlight the flipside of our booming resources sector.

"As world demand for our resources continues to grow, fuel costs will increase and we can expect this to drive up the regulated tariff and the price Queensland pays for electricity."

Queensland currently depends on black coal for roughly 88 per cent of its electricity production, followed by gas at ten per cent.

Renewable technology - such as wind and solar power - only accounts for two per cent of energy generation.