The Turnbull government is expected to take its revised energy policy to the Coalition partyroom early next month with a plan to make a significant investment in cleaner coal-fired power as a counterbalance to also adopting a clean energy target.
The Australian has learned that Malcolm Turnbull and Energy Minister Josh Frydenberg are working on a compromise deal on coal that would allow them to quell internal resistance to a CET.
In last Tuesday’s post It’s gas, not renewables, pushing up electricity prices the federal Minister Josh Frydenberg attacked the Queensland government through it’s state-owned generators for “gaming the system”, which, he said gave Queensland the nation’s most expensive electricity, costing jobs. In that post Queensland’s electricity was shown to be low compared to those of the other eastern mainland states, in recent years and in recent months the lowest.
The Finkel review of the National Electricity Market is due to be revealed to the premiers at COAG tomorrow, but is you’ve been reading the Australian Financial Review it’s all done and dusted. There’s really only one horse in the race, and it’s the Low Emissions Target (LET), which Tony Wood of the Grattan Institute says is the third last horse in the race, but picked because it’s better than the other two. That may be harsh, but the visionary scheme was first proposed by John Howard in 2007. Here’s Howard and Costello launching the scheme way back then:
The initial stimulus for this post was an article in the AFR entitled We are at an energy crossroad (paper version) by Tony Wood of the Grattan Institute, based on a new report Powering through: how to restore confidence in the National Electricity Market and a series of articles mainly at RenewEconomy. I’ll summarise them Climate clippings style, so the story should emerge and you can follow the links for elaboration if you choose. Continue reading Energy crossroads→
The Four Corners program Power Failure added to the sense of crisis around our power system, beginning with the breathless comment that there was almost a breakdown of civil order in South Australia when the lights went out in September. The program looked at the difficulties experienced when the power went off for three days. Recently in some places affected by Cyclone Debbie, crews couldn’t get in to start fixing for about double that time. I’ll come back to Four Corners via a series of articles published on the same day.
First, in the AFR tucked away on page 8, Mark Ludlow penned an article Renewables, EIS ‘make gas-fired power redundant’ (paper edition title). Ludlow interviewed Professor Frank Jotzow, director of the Centre for Climate Economics and Policy at ANU, who said gas had been overtaken by renewable energy, including battery storage, in the transition away from coal-fired power. We should skip gas and go straight to renewables with batteries. Continue reading Power tipping point→
Jay Weatherill’s energy plan involves the construction of a government-owned 250MW gas-fired power plant to provide emergency back-up power and system stability services for South Australians, and power for his resources minister to instruct the owners of Pelican Point to turn it on. Yet his plans for cheaper gas, or any gas, will not work quickly and possibly will not work at all. Laura Tingle in an excellent article published under the title of Power sources: steaming Premiers and Pumped PMs tells us that on the futures market on Wednesday, the June contract for electricity in Victoria hit $147.50 per megawatt hour, compared to a price for the March contract of just $80 as energy traders put a price on the closure of Hazelwood in Victoria at the end of March.
Meanwhile a group of former BHP Billiton and BP executives is consulting with SA to build a private equity funded power station, using gas from a floating regasification plant sourcing gas from the North West Shelf and from Singapore, some of which may actually come from the Cooper Basin in the state’s north via Gladstone.
Craig Emerson says we can get the gas we need, but is it necessary?
Craig Emerson has an article in the AFR, also on his site, suggesting that politicians need to urgently turn their minds to gas supply in east Australia. Emerson had warned them back in 2014, but they took no notice, and AEMO assured everyone there was no problem.