Tag Archives: Gas

Climate clippings 118

1. South Australia going for broke

Malcolm Turnbull would call it a ‘reckless, irresponsible, ideological frolic’, but South Austria has been running 63% on wind and solar during the last few months, and is going for broke.

Giles Parkinson says SA must, and will, lead world on renewables.

    The Weatherill and Koutsantonis strategy is to embrace new technologies, cheap wind and solar and storage, smart software and smarter management, and put into practice the sort of scenarios envisaged by the CSIRO, Energy Networks Australia and more recently by the storage review commissioned by chief scientist Alan Finkel.

All that can stop Weatherill and Koutsantonis is Nick Xenophon at the next election putting the LNP into office.

Turnbull and Frydenberg will be swept aside as irrelevant detritus.

If I get time I’ll do a longer post.

2. Finkel’s frustration

Chief Scientist Alan Finkel is fed up with our conservative national politicians:

    Finkel argues that Australia has managed a unique trifecta – high prices, high emissions, and high uncertainty – and fallen behind the rest of the world. And he has no doubt who is to blame.

    “Everyone else has a strategy,” says one of the key points of his presentation (see above). The next line is equally damming: “Regulatory system suffering 10 years of policy paralysis.”

    Energy insiders and observers know exactly what Finkel is referring to: the first is clear, the political impasse caused by the Far Right and its opposition to basic economics and science.

    The second offender would be interpreted as the Australian Energy Market Commission – the rule maker that has stood in the way of blindingly obvious reforms such as introducing environmental considerations into the National Electricity Objective, and which has resisted and delayed nearly every proposed change that would nudge Australia’s ageing, creaking energy infrastructure into the 21st Century.

3. Finkel says there is no need to panic about energy storage

    While the ESB, in arguing for a National Energy Guarantee, speaks of the system threats and urgency to act with a level of “variable” renewables accounting for between 18 and 24 per cent of total generation, this new report says surprisingly little storage may be needed with 35 per cent to 50 per cent wind and solar.

I suspect that there will be real worries about the credibility of the ESB (Energy Security Board) while John Pierce chairs the Australian Energy Market Commission. You may recall that during the Finkel review, Finkel questioned the point of meeting with the AEMC because no engineers were present.

4. Queensland chooses sunshine over coal, to relief of solar industry

    Phew, that was close. That must be the reaction of the Australia solar industry, and local and international renewable investors, after a result that puts the Labor government within touching distance of a small majority or at least a workable minority government.

    The re-election of Premier Annastacia Palaszczuk in Saturday’s nail-biting poll will guarantee the medium-term future of the solar industry in Australia, along with several large-scale wind and hybrid projects, and some key storage installations.

    It will also likely have a bearing on federal politics too, given that the Queensland government is unlikely to approve a National Energy Guarantee that seeks to choke the level of wind and solar that can be added to the national grid, or reinforces the power of the energy incumbents.

It was an important win for Queensland, the nation and the planet.

5. More gas on the way

The Adelaide press carries a story about New report into potential fracking expansion in the Cooper Basin

In Brisbane we have Queensland on cusp of new gas boom

    QUEENSLAND is on the cusp of a new gas boom with exploration for shale gas to start in the Cooper Basin.

    In what could be a new money earner for the state — and ease the cost of energy prices — millions of dollars will be spent to determine if the extraction should start.

    It is understood Geoscience Australia estimates prospective shale and tight gas resources in the Cooper Basin could provide 29 years of east coast gas at current production rates.

    The Turnbull Government will use cash from the $30 million geological and bioregional assessments program to evaluate the priority area.

It’s basically the same story, just different parts of the Cooper basin.

Then there is this story – Arrow Energy strikes major gas deal with Shell in Queensland’s Surat Basin:

    A deal to extract gas from Queensland’s Surat Basin will create 1,000 new jobs, boost domestic gas supply, and unlock one of the largest gas reserves on the east coast, the resources industry says.

    Arrow Energy has signed a 27-year agreement to supply more than four times the forecast east coast domestic gas shortfall to Shell’s Queensland Curtis Liquified Natural Gas project every year.

So there is plenty of gas around without NSW and Victoria changing their anti-fracking policies. Price is another issue. I recall Matthew Stevens in the AFR saying all the cheap gas had been developed. However, we should all hope that it is not necessary to burn the gas.

6. Tesla big battery switched on

One might say it was an important step for mankind.

Apart from anything else, I’m told it is a tourist attraction.

    It marks a momentous day for the national grid, and a major step towards a modern network that will ultimately deliver cheaper, cleaner, smarter and more reliable energy than we have now.

It is the first of a number. They will have a role in grid stabilisation more than backup power. For that SA is relying on dirtier energy during this summer. In just 58 days (the Tesla took 66, I think) US firm APR Energy have just built a diesel-powered bank of generators capable of putting out 276 MW of power. The bank of generators can fire up from a cold start in just eight minutes.

I think this facility is to be replaced by a 300 MW gas plant designed for emergency standby, when it is built.

7. Syria joins Paris climate accord

    Syria has announced it intends to join the 2015 Paris agreement for slowing climate change, leaving the United States as the only country in the world opposed to the pact.

    Syria, wracked by civil war, and Nicaragua were the only two nations outside the 195-nation pact when it was agreed in 2015.

    Nicaragua’s left-wing Government, which originally denounced the plan as too weak, signed up last month.

8. A Kodak moment for coal

John Quiggin says The Queensland election’s renewables versus coal debate isn’t about jobs. It’s a culture war.

There is one thing I disagree with Quiggin in this article. He says no-one can reduce electricity prices by much. Prices, perhaps not, but Labor has reduced electricity bills by 16.1%. Why has no-one other than me noticed? And you could reduce them by a further 25% by nationalising retailing.

Other than that it’s a good article.

Christiana Figueres has really laid it on the line. She reckons Adani is a Kodak moment for coal.

    She hopes to see coal, like those sentimental moments in time captured in photographs, confined to history — with the world remembering the contribution the fossil fuel has made to human development, while recognising the need to retire it as a fuel source because of its contribution to global warming.

    And, she says, it’s happening.

    “We just had 25 countries come together [at the latest international climate change talks] in Bonn to say that they are moving out of coal in the short term.

    “That does not include Australia or India or China, but you can begin to see the trend.

    “India is headed for peaking its coal consumption by the year 2027.”

News has just come through that China Construction Bank won’t grant loan to Adani.

Queensland powers up for a warm summer

One morning recently, 10 October I think, local ABC radio host Steve Austin called up Queensland energy minister Mark Bailey to ask him about an announcement the Queensland government had made. Something about, on a voluntary basis, turning down your aircon so it runs at 26C and being paid for the power saved.

Bailey obviously had a story to tell, but wasn’t given a chance to tell it. Austin is not a boofhead, but he sometimes does a good imitation of one. In this case Bailey was bullied and harassed, “Just answer my question!”, which was whether the purpose of the scheme was to save people money, or to keep the lights on, I think there was a third option which I’ve forgotten. In any case the answer “All of the above” was not permitted, and we never found out what the scheme was about.

With Bailey dispatched, Austin gave LNP spokesman Scott Emerson the opportunity of a free rant, presumably in the name of ‘balance’ with no right of reply for Bailey. Later in the morning Austin told us he had trouble getting people to come on the show! What a surprise! Continue reading Queensland powers up for a warm summer

Climate clippings 117

On Monday and Tuesday this week we are going to have the AFR national Energy Summit in Sydney with everyone there, including Josh, Jay, Bill, Andrew Vesey and a different Malcolm Roberts (Chief Executive, APPEA). Should be fun.

The Weekend AFR had about half a dozen articles, led off by an article by Ben Potter, Angela Macdonald-Smith and Mark Ludlow (no doubt pay-walled) which said our energy has become dirty, expensive and annoyingly unreliable. They reckon something has to be done, it’s just that:

the causes identified by Prime Minister Malcolm Turnbull – or unofficial backbench energy spokesman Tony Abbott – are not the same as the causes power industry experts and regulators highlight. Continue reading Climate clippings 117

Climate clippings 116

1. South Australia wants an apology from the PM

On September 28 we had the first anniversary of the dirty big storm the brought down the power pylons in South Australia causing a state-wide blackout, as the Heywood interconnector exceeded capacity and tripped.

Now the state want an apology from the PM. Energy minister Tom Koutsantonis: Continue reading Climate clippings 116

Gas to burn, but at what cost?

Four and a half years ago, at the national conference of the AWU in 2013, general secretary Paul Howes issued a warning:

    Howes warned that unless some gas was reserved for domestic use, and limits on coal seam gas extraction were lifted, the massive investment boom in LNG would soon affect the supply and price of domestic gas. And consumers, business and manufacturers would all suffer.

    “This is one of the most important resolutions we’ll debate at this conference,” he said.

Continue reading Gas to burn, but at what cost?

Coal-fired power trade-off for new clean energy target

That is as reported by Simon Benson in The Australian:

    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.

Continue reading Coal-fired power trade-off for new clean energy target

AER, ACCC and the ABC join the fray on Qld electricity prices

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 state has now been attacked by the AER (Australian Energy Regulator) and by the ACCC. At the end of it all, Steve Austin, the host of Mornings on Brisbane’s local ABC, sank the boot in. So what to make of it all? Continue reading AER, ACCC and the ABC join the fray on Qld electricity prices

It’s gas, not renewables, pushing up electricity prices

There has been a war about electricity prices reflected in front page headlines. For example:

Continue reading It’s gas, not renewables, pushing up electricity prices

Australia puts the brakes on wind

Wind power, seen as inherently evil by our national government, was in danger of taking over in South Australia. So something had to be done to slow it down, right?

How about if the wind blows strong providing cheap power we mandate that the gas must be turned up as well, so the wholesale price goes up instead of down?

It seems absurd, but that is what has been done. Continue reading Australia puts the brakes on wind

Looking forward to Finkel

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:

It’s the least-worst, least-best carbon pricing scheme, but has the attraction of giving coal a chance of sticking around for a while. Continue reading Looking forward to Finkel

Energy crossroads

Transformer over orange sky
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

Turnbull stands naked on climate policy

Giles Parkinson says of the 2017 budget that Turnbull lets [his] fig leaf droop and stands naked on climate policy. Matthew Rose says Turnbull’s budget ignores energy crisis and dodges climate. The Conversation article is headed Budget 2017: government goes hard on gas and hydro in bid for energy security, which is I think misleading. It goes for gas and hydro, but not hard.

Before looking at what the budget has to offer, it is appropriate to remind ourselves that at the UN climate talks in Morrocco last year, Australia’s proposed effort was ranked fifth worst in a list representing 90% of the world’s emissions. Moreover, Frydenberg has been backsliding since then, suggesting we may not achieve zero net emissions until 2100. Continue reading Turnbull stands naked on climate policy