Coal seam gas drives electricity demand

The latest measure of national electricity demand shows a sustained rise courtesy of the growing Queensland coal seam gas industry.

Queensland's coal seam gas industry is the driving force behind an increase in national electricity demand, a report shows.

Electricity demand rose 0.17 per cent in the year to January 31, continuing an almost year-long rise, according to the latest Carbon Emissions Index (CEDEX) report by Pitt&Sherry and The Australia Institute.

Carbon emissions fell slightly in January due to a drop in high-pollution brown coal use and an increase in hydro power, arresting a continuing rise in emissions since the scrapping of the carbon tax in July 2014.

Pitt&Sherry principal analyst Hugh Saddler said January was the eleventh successive month to show an increase in demand in the National Electricity Market, which covers eastern Australia.

"Queensland is driving this increase, with demand being 4.5 per cent higher than in the year to February 2015 as it continues to use electric motors for the extraction of coal seam gas," Dr Saddler said.

Demand increase for other states was much smaller at 0.6 per cent for the year.

National carbon emissions are expected to return to their rising trend by around March, when an undersea power cable from Victoria to Tasmania is expected to be repaired, increasing demand on Victorian coal-fired power stations.