A New South Wales Labor government would establish a state-owned renewable energy company to support the rollout of enough renewable energy to power more than three million homes across the state in the next decade.
On Monday the NSW opposition leader, Michael Daley, announced that if elected on 23 March, Labor would deliver seven gigawatts of extra renewable energy by 2030.
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:
“Ten years of brutal, opportunistic politics has left this nation with no credible energy policy.”
The money quote from Jay Weatherill’s outburst was this:
“Josh Frydenberg was humiliated back in December. We were working with him to introduce an emissions intensity scheme. He knows that. It was well advanced. It was about to happen. Coal interests in the federal Coalition government basically cut him down before he even had a couple of hours explaining it.”
An AFR article about investors piling into lithium and graphite mining stocks tells a tale. With our focus on Tesla we are missing the story of China.
Although the Western world’s focus is on Tesla’s progress, it is China’s EV push – it makes up 38 per cent of the global EV fleet, an increase from just 8 per cent in 2012 – that is really turning the dial.
Argonaut’s Hong Kong-based analyst Helen Lau says the massive subsidies available in the Chinese EV market to curb carbon emissions and lessen that country’s reliance on oil imports make electric cars up to 15 per cent cheaper to buy than conventional, internal combustion ones.
James Hansen has a 17 author paper out suggesting that we could have multi-metre sea level rise this century. It’s based on the notion that meltwater from the ice sheets interrupts ocean circulation patterns, which then cause a feedback loop via larger storms. I think that’s it in brief. Continue reading Climate clippings 148→
The Tea Party LNP Government and Labor have agreed to talk, to find a bipartisan position on the RET. The LNP has now set out what must be an ambit claim:
The RET will constitute a so-called “real 20 per cent” of Australia’s electricity production.
Emissions from intensives industries, including aluminium, copper, zinc and cement will be exempt.
The small-scale solar panel scheme will remain untouched.
Biannual reviews of the target will cease.
As background, the RET was legislated in 2009 as 41,000 gigawatt hours, representing 20% of the electricity estimated to be produced in Australia in 2020.
Since then electricity demand has collapsed, meaning the 41,000 gigawatt hour target is now closer to 27%.
This was Bill Shorten’s response:
“The government say they want a real 20 per cent, I call it a fraud 20 per cent, a fake 20 per cent. The truth of the matter is that renewable energy is part of our energy mix. It’s had a great benefit for a whole lot of consumers,” Mr Shorten said.
“We’ve seen thousands of jobs created…and we’ve seen billions of dollars of investment. The real damage that this government’s doing in renewable energy cannot be overstated.”
As John Davidson has been saying repeatedly, the damage is already very evident, as shown in this graph:
The renewables industry reaction:
But the renewable energy industry said the target as proposed would devastate the industry and jeopardise millions of dollars in investment.
Lane Crockett, general manager of PacificHydro, said: “What reason can there be [for this cut] other than to protect the coal industry?”
Ironically the LNP position would be seen as something of a win internally for Greg Hunt in the face of the climate scepticism that infects the governing parties.
On the matter of reviews, the LNP have been saying that the Warburton Review was required by legislation. I think the truth is that by law the review should be done by The Climate Authority, which still exists. According to Lenore Taylor at The Guardian:
The Climate Change Authority announced this week it was conducting its own review of the RET before December, as required under law.
I wonder who is paying their bills.
Giles Parkinson points out that The Climate Authority will look at the RET in terms of its contribution to reducing emissions rather than consumer prices. That is novel in the current environment – reviewing the RET in the light of its original purpose!
In that article Christine Milne in estimates hearings chewed out the PMs Department which ran the Warburton review for allowing the review to go beyond its terms of reference and recommending the most expensive options.
The Abbott government has confirmed that its opening position in talks with the Labor Party is for a “real” 20 per cent target, meaning that the amount of large scale renewable energy being built in Australia over the next 5 years could be cut by two thirds from the current target.
This was one of the key recommendations of the Warburton Review, which made the recommendation despite finding that the cost to consumers would be far less if it left the target at the current level of 41,000GWh by 2020, or made it a 30 per cent target by 2030. (Emphasis added)
Climate Spectator had this post on Dick Warburton, the Chair of the RET review committee and his performance on a Fran Kelly interview after his review had been released. It gives a picture of a man who doesn’t understand his own report or anything much else apart from the need to recommend the destruction of the RET and all the jobs it has created.
But the LNP are also responding to the popularity of rooftop solar where around “15,000 Australian households add rooftop solar each month, despite the disappearance of state-based feed in tariffs.” After all nine out of 10 households have considered or would consider installing roof-top solar.
Large scale investments are for decades rather than for years. Genuine bipartisanship to a long term commitment is needed. Even if an agreement can be cobbled together in the talks, there is a real question as to whether investors in large scale renewables in Australia will consider it worth the risk.
Large scale clean energy development is basically dead in Australia, thanks to the Abbott Government’s negativity and delays. Giles Parkinson says that the Government is effectively trashing the industry:
Bloomberg New Energy Finance data shows that Australia is on track to record its lowest level of asset financing for large-scale renewables since 2002 – as just $193 million was committed in the third quarter of the year. From ranking No 11, in the world in 2013, Australia has fallen behind Algeria and even Myanmar.
This graph tells the story:
Australia, which should be one of the world’s leaders in the industry, is seeing its industry collapse. The three biggest Australian investors in renewable energy are in deep trouble.
Industry Funds Management is being forced to write down the value of Pacific Hydro, the largest specialised investor in renewables in the country, by $685 million, according to the Australian Financial Review. This from a business that was to have been floated a year or so ago with a value of more than $2 billion.
Infigen Energy, the largest listed investor in renewables, has said it is facing massive writedowns, and potentially taking dramatic action to protect shareholder funds. It has brought Australian investments to a halt. So has Silex Systems, which has effectively abandoned the solar industry.
International investors have also made clear that their investment in Australia will end soon un less policy stability is restored. These include First Solar, Chinese wind turbine leader Goldwind, and numerous others. The US-based Recurrent Energy has already packed its bags, Spanish based FRV has said its $1.5 billion pipeline is at risk.
Australia’s year-to-date investment of $238 million in large-scale renewables development so far this year compares to Canada’s $3.1 billion.
The world leaders are now China and Japan.
China may add more than 14 gigawatts of solar capacity this year — almost a third of the global total, according to BNEF.
China is fast approaching its goal of installing 35 gigawatts of solar by the end of 2015.
Apparently they believe in picking winners and subsidies, as does Japan:
Japan, the world’s second-largest solar market, increased spending 17 percent to $8.6 billion in the third quarter. Japan has approved about 72,000 megawatts of clean energy projects since the country’s feed-in tariff program started in 2012, with about 96 percent being solar projects.
Meanwhile the LNP have entered into negotiations with Labor on the Renewable Energy Target, presumably having given up on PUP and the cross bench. Labor seems to favour a numerical target similar to the status quo, whereas the LNP favours an actual 20% target, which would be a reduction and disastrous for the industry. Labor seems to be prevailing. There is talk of an exemption for aluminium processing.
We’ll have to wait and see whether what comes out is too little too late, and whether the LNP plays fast and loose with yet another industry sector.