18 October 2017, The Conversation, The government’s energy policy hinges on some tricky wordplay about coal’s role. The most important thing to understand about the federal government’s new National Energy Guarantee is that it is designed not to produce a sustainable and reliable electricity supply system for the future, but to meet purely political objectives for the current term of parliament. Those political objectives are: to provide a point of policy difference with the Labor Party; to meet the demands of the government’s backbench to provide support for coal-fired electricity; and to be seen to be acting to hold power prices down. Meeting these objectives solves Prime Minister Malcolm Turnbull’s immediate political problems. But it comes at the cost of producing a policy that can only produce further confusion and delay. The government’s central problem is that, as well as being polluting, coal-fired power is not well suited to the problem of increasingly high peaks in power demand, combined with slow growth in total demand. Coal-fired power plants are expensive to start up and shut down, and are therefore best suited to meeting “baseload demand” – that is, the base level of electricity demand that never goes away. Until recently, this characteristic of coal was pushed by the government as the main reason we needed to maintain coal-fired power. The opposite of baseload power is “dispatchable” power, which can be turned on and off as needed. Classic sources of dispatchable power include hydroelectricity and gas, while recent technological advances mean that large-scale battery storageis now also a feasible option. Coal-fired plants can be adapted to be “load-following” which gives them some flexibility in their output. But this requires expensive investment and reduces the plants’ operating life. The process is particularly ill-suited to the so-called High Efficiency, Low Emissions (HELE) plants being pushed as a solution to the other half of the policy problem, reducing carbon dioxide emissions. Read More here
Category Archives: Australian Response
18 October 2017, The Conversation, Federal government unveils ‘National Energy Guarantee’ – experts react. The federal government has announced a new energy policy, after deciding against adopting the Clean Energy Target recommended by chief scientist Alan Finkel. The new plan, called the National Energy Guarantee, will require electricity retailers to make a certain amount of “dispatchable” power available at all times, and also to reduce the electricity sector’s greenhouse emissions by 26% relative to 2005 levels by 2030. The government says it will save the average household up to A$115 a year after 2020, while also ensuring reliability. Below, our experts react to the new policy.Read more: Infographic: the National Energy Guarantee at a glance. Read More here
18 October 2017, Renew Economy, States gobsmacked by lack of detail, research in Turnbull’s NEG. The chances of the Turnbull government getting the approval of the states for its National Energy Guarantee appear remote after a devastating response to the proposal following an emergency phone hook-up on Tuesday. Approval for the states – through the COAG process – is apparently critical for the Coalition to implement the plan, because it requires changes to the National Electricity Rules. But in a testy phone-hook up between Frydenberg and the state energy ministers, the federal Coalition admitted it had no details, no modelling – and all it had to show for what it describes as “breakthrough moment” was a press release and an eight-page letter from the Energy Security Board. State representatives said they were gobsmacked by the sheer front and incompetence. “I’ve never seen anything like it,” said one. “We would be ripped apart if we tried something like that.” Queensland energy minister Mark Bailey was dismissive of the lack of detail. “The detail is threadbare and it would be irresponsible to set the nation’s energy policy based on a short letter which is all we’ve been given.” (Read Bruce Mountain’s account for an explanation as to how this policy farce may have come about). It is particularly ironic because the federal Coalition needs the state approval, yet Frydenberg told the state energy ministers that the states would be relied on to do the heavy lifting to meet the various targets. Read More here
10 October 2017, The Conversation Government’s energy plan still under wraps while Abbott shouts his from afar. Speaking in a light and bright FM radio interview on Tuesday, Malcolm Turnbull said that in politics, “just being chilled, calm is very important. A little bit of zen goes a long way.” He was answering a question about himself. But those with a stake in energy policy might be feeling a rather desperate need to dip into their own zen reserves right now. The government hates the suggestion its policy process looks chaotic, and insists there is “a plan”. “The good news is that we have learned the lessons of the past, we know where we are going and we have a comprehensive plan to get there,” Energy Minister Josh Frydenberg told The Australian Financial Review’s energy summit. But what the core feature of the plan is has yet to be revealed, and this week has added to the public confusion. The AFR’s two-day forum, which seemed to have everyone who is anyone in the field, provided a stage for the latest episode in the policy saga. Frydenberg’s Monday speech was widely seen as the government walking away from the clean energy target proposed by Chief Scientist Alan Finkel. The justification was the falling price of renewables, obviating the need for future subsidies. No surprise perhaps, because despite some initial enthusiasm from Turnbull and Frydenberg, the crab-walk back, under the pressure of the naysayers in Coalition ranks, had been apparent for some time. But here it was happening with Finkel himself in the room, as one of the conference speakers. Read More here