30 November 2016, The Conversation, Will the latest electricity review bring climate and energy policy together at last? The Australian government is reviewing our electricity market to make sure it can provide secure and reliable power in a rapidly changing world. Faced with the rise of renewable energy and limits on carbon pollution, The Conversation has asked experts what kind of future awaits the grid. Australia’s National Electricity Market (NEM) is under review following the state-wide blackout that hit South Australia in September. The review, led by Chief Scientist Alan Finkel, will “develop a national reform blueprint to maintain energy security and reliability”. Importantly, the Council of Australian Governments (COAG) specifically agreed that the review would consider Australia’s commitment under the Paris climate agreement, and how climate and energy policy can be integrated. Before we consider how the NEM might need to change, it is important to understand how it came about. State responsibility Electricity supply began as a state responsibility. Originally, state-based utilities owned and operated the entire supply chain, from generation to transmission, distribution and retail. With the exception of the Snowy Hydro Scheme, there were no interstate transmission lines. Accessibility and affordability were (and still are) key concerns for the states. As such, electricity prices were equal for all citizens, irrespective of their location or the actual cost of bringing electricity to them. This is still partly reflected in network tariffs today. In the late 1980s, concerns about rising costs to government, but also a worldwide ideological move towards privatisation of public services, drove a shift away from publicly owned utilities. This began with a New South Wales inquiry, which found that NSW could avoid billions of dollars in new investment by connecting its network with Victoria. This set the scene for the development of a more interconnected grid and more general reform. In particular, this was followed by a report from the former Industry Commission in 1991 and the Hilmer Reviewon National Competition Policy in 1993. These reports were dominated by market logic. They argued that competition would make the system more efficient. Governments specifically agreed to reforms that would lead to a fully competitive national electricity market. This involved breaking up and selling the three layers of the electricity sector: generation, networks and retail. Read More here
Yearly Archives: 2016
29 November 2016, The Age, Farmers demand the Coalition government does more on climate change. A thumping majority of Australian farmers have concluded they are witnessing the effects of climate change, urging the Coalition government to reduce greenhouse gas emissions and prepare the country for a future that is drier, less predictable and more prone to bushfires. This is according to a survey of 1300 primary producers across states and agricultural sectors, conducted by advocacy group Farmers for Climate Action with the co-operation of the National Farmers Federation. It found 88 per cent of respondents want rural and regional politicians to start advocating for stronger climate change action. Two thirds have seen changes in rainfall over their time on the land and half have seen an increase in droughts and floods.Nine in 10 are concerned about damage to the climate and eight in 10 support Australia moving towards 100 per cent renewable energy. Read More here
30 November 2016, BIEN, Catalonia (Spain): Catalonian Economy and Tax Office presents profound study on social policies, featuring basic income. In the Spanish region of Catalonia, serious efforts are being made to reduce poverty and to reduce inequalities. Last week, on the 17th of November, the Catalan Economy and Tax Office presented a thorough study on social policies, which includes the contributions of 30 academics and other experts and technicians. The document points out that current restrictions on the Catalan regional government public policies are stalling necessary changes, such as the implementation of more redistributive measures. This is due, in part, to the fact that the main tax revenue is managed by the Spanish State. The Catalan regional government is making attempts to address poverty and inequality, with the 2017 regional budget considered to be “the most social ever”. Under the new budget, more tax will be collected from both large property transfers and non-productive assets, and put into a budget that surpasses all other previous budgets in terms of social spending (education, health and social affairs). Despite this, Catalan officials recognize that the government should do even more to reduce poverty and tackle inequalities. Although Catalonia’s poverty rate (19%) is lower than the Spanish average (22,1%), it is still above the European Union’s average poverty rate (17,2%). Catalonia also faces a persistently high unemployment rate (11,2%), despite the economic recovery in recent years. The document presented by the Economy and Tax Office in Catalonia recommends profound changes to the regional social benefits scheme, which has been inadequate in poverty alleviation and prevention. At one point, it refers to basic income as a possible solution to this structural social problem. The regional basic income would amount to an unconditional allowance of 7471 €/year for every adult citizen, plus a 1494 €/year for every child (under 18 years of age) in Catalonia. According to the study, replacing all current benefits which are valued below the basic income amount would save around 90 thousand million euros per year, in 2010 numbers. The study also states that basic income would reduce inequalities and allow young people to enjoy a larger degree of freedom and emancipation. Read More here
29 November 2016, Carbon Brief, Guest post: Misleading media coverage of Antarctic sea ice paper. Dr Jonathan Day is a polar climate scientist at the University of Reading. His work focuses on understanding and predicting changes in sea ice in the Arctic and Antarctic. Last week, my colleague Tom Edinburgh and I published an article estimating the extent of Antarctic sea ice in the early 1900s, using sea ice observations recorded by explorers of the time. It received an overwhelming amount of coverage in the media. This was largely because it combined a human-interest story about the conditions faced by the early Antarctic explorers with an illuminating result regarding the thorny issue of Antarctic sea ice trends. Despite significant increases in global average temperature, sea ice in the Antarctic has been slightly increasing in extent over recent decades (1979 – present). Although much of the coverage was very well reported, there were other examples of the results being wrongfully interpreted, perhaps wilfully so. Some of the errors led to confusion, such as conflating sea ice with land ice. Others attempted to cast doubt on the link between greenhouse gases and global mean temperature, which was inappropriate and misleading. Read More here