2 October 2017, Australian Institute, We have enough cheap, easy-to-extract gas to last 100 years. There’s just one problem. Australia has plenty of cheap gas. The problem is private companies are selling it all overseas, writes principal adviser at the Australia Institute Mark Ogge. Hard to believe, isn’t it? But it’s true: in the last decade, tens of thousands of square kilometers of Queensland farmland has been covered in gas fields. The export gas rush in Australia is one of the largest and fastest expansions of a gas industry ever seen, anywhere in the world. We are awash with gas. The problem is we are allowing almost all of the cheap and easy-to-get-at gas to be sent overseas. The gas in some areas is close to the surface, in big reserves all together, where there are no bothersome farmers, aquifers or national parks in the way. That gas is relatively cheap to extract. But some gas is deeper and harder to get at for all sorts of geological reasons. And that gas is more expensive to extract. Some gas is not just deep and hard to get at, but is underneath valuable aquifers that would need to be drilled through to get the gas. Much of it is on properties of people who don’t want a gas field on their land, or on properties a long way from where the gas is needed. That gas is very expensive to extract. So, naturally, the gas companies’ first preference is for the easily extractable, cheap gas, and they drill that and sell it first. The problem is, there is a limited amount of that cheaper to extract gas. Once that gas is gone, only the difficult, expensive-to-extract gas remains. That was OK when it was just being sold to Australian customers. There was enough reasonably easily extractable, cheap gas to last for decades at least. Read More here
Category Archives: The Mitigation Battle
20 September 2017, Renew Economy, Back to 2009: Abbott declares war on everything. Well, that turned out well didn’t it. Despite prime minister Malcolm Turnbull’s desperate attempts to appease the conservative faction of his Coalition government by compromising everything he ever stood for on climate and clean energy, it’s clearly not enough. In doing so, Abbott has done what Turnbull dared not in the past two years: jettison Abbott-era policies. While Turnbull was too afraid to make those policies more ambitious, Abbott has now come out and effectively dumped the very policies he put in place: its Paris climate commitment, and the much-reduced renewable energy target.His predecessor Tony Abbott effectively dialled back the climate and energy debate to 2009 by announcing that he would cross the floor and vote against anything that looked remotely like a climate change policy, or represented even the smallest subsidy for renewable energy. Abbott has reinforced his assertion that climate science is “crap”. In an interview on Rupert Murdoch’s Sky News with climate denier and renewables hater Alan Jones and his former chief of staff Peta Credlin, Abbott rates climate changes as “a third order” issue. Read More here
15 September 2017, Renew Economy, Blackouts and baseload: Debunking myths of AEMO reports and Liddell. The day after the release of the two key reports from the Australian Energy Market Operator last week – its annual Electricity Statement of Opportunities and the specially commissioned report on dispatchable generation requested by the federal government – RenewEconomy could barely believe what it read and heard in the media. Consumers were being frightened into thinking that the lights were going out, the economy would collapse, and they’d all be better off going out to buy a generator and a supply of candles and batteries. The only possible solution to the crisis, we were told, was to stop renewable energy and keep the Liddell coal generator on line. What was missed – in the fog of politics, ideologies and deliberate misinformation – were the fundamental messages of the two reports: that the energy system is transitioning quickly, and it is more or less unstoppable, because of the march of technologies and global trends. This is not a bad thing, AEMO boss Audrey Zibelman underlined. But it does require some policy certainty and some co-ordination to ensure that Australia’s dirty, expensive and increasingly unreliable grid can be transformed into a smarter, cleaner, more reliable and cheaper source of power. Read More here
12 September 2017, Renew Economy,AEMO: Our advice was pretty straight forward, we need dispatchability. As the federal Coalition continues to push the case for an ageing, unreliable, and slow moving coal generator to maintain energy security in the 2020s, the Australian Energy Market Operator has underlined its advice to the government last week: it wasn’t a push for more baseload. “We need flexible capacity that can be switched on and off, and we need to transition to a new generation of Australia’s principal energy market institutions, and the newly-formed Energy Security Board. “Our advice was fairly pragmatic,” Zibelman said. “We are concerned that on a 45°C day if we lose a generator (which AEMO has said is quite likely) we want reserves in the system to be able to respond. “In our report we identified the fact that with amount of variability (from solar and wind energy and electricity usage) is changing rapidly, we need resources that can change rapidly. “That may be different to traditional baseload resources, which do not move a lot. It doesn’t mean baseload is bad, it’s just that we need a different portfolio. (Baseload) may not be able respond in the time period we need it to respond.” Sound like Liddell? Not really. The plant owner AGL Energy has made it clear that Liddell is old, increasingly unreliable, expensive to maintain, prone to unexpected outages and can’t be relied upon at times of peak demand, particularly as temperatures rise. Zibelman’s comments, like the two AEMO reports it released last week, contrast starkly with the Coalition government’s contention that AEMO had insisted that rapid action was needed, and that that rapid action must mean that Liddell’s life span must be extended. Zibelman made it absolutely clear that her preference was for fast, flexible technologies, both in supply and demand, and bother in front and behind the meter. Importantly, it had to be technology that the market operator could rely upon. Read More here