3 January Jeremy Leggett Blog, State of The Transition: As fossil fuel diehards take over The White House, the evidence of a fast-moving global energy transition has never been clearer. As captains of the fossil fuel industries and their lobbyists prepare to take over the White House – appointed by a President elected by a minority, claiming to represent the people on an anti-elite ticket yet possessing by far the highest cumulative wealth of any cabinet ever – they will face evidence breaking out all around them of a fast-moving global energy transition threatening to strand the fossil fuels they seek to boost. “World energy hits a turning point”, a Bloomberg headline read on 16th December. “Solar power, for the first time, is becoming the cheapest form of new electricity,” the article marvelled. Analysis of the average cost of new wind and solar in 58 emerging-market economies – including China, India, and Brazil – showed solar at $1.65 million per megawatt and wind at $1.66. Google leads the giant corporations eagerly going with this flow. The largest corporate buyer of renewable energy announced on 6th December that it expects to hit its target of 100% renewable power in, wait for it, 2017. Google is a huge consumer of power, and going solar means deep emissions cuts, especially when solar infrastructure is hooked up with all the digital efficiency-enhancement fandangoes that Silicon Valley giants are zeroing in on in the fast emerging era of artificial intelligence in an internet of things. Read More here
Tag Archives: Economy
27 December 2016, The Conversation, Universal basic income: the dangerous idea of 2016. The resurrection of universal basic income (UBI) proposals in the developed world this year gained support from some prominent Australians. But while good in theory, it’s no panacea for the challenges of our modern economy. UBI proposals centre on the idea that the government would pay a flat fee to every adult citizen, regardless of his or her engagement in skill-building activities or the paid labour market, as a partial or complete substitute for existing social security and welfare programs. Of the schemes run in developing places like Kenya, Uganda, and India, some have been evaluated statistically, delivering some evidence of positive impacts on educational investments, entrepreneurship, and earnings. In the developed world, Canada is trialling a UBI scheme. Finland also just rolled out a UBI trial, involving about 10,000 recipients for two years and costing about A$40 million. While Switzerland’s voters just rejected a UBI proposal via referendum, a similar proposal is presently looking like a goer for Utrecht in the Netherlands. Here in Australia, it has been suggested the government might hand out somewhere between A$10,000 and A$25,000 a year to every man and woman. Can we afford it? There are two big questions to ask before taking a UBI proposal seriously, and the first is the most obvious one: where would the money come from to pay for it? The present Australian welfare system (excluding the Medicare bill of A$25 billion) costs around A$170 billion per annum. Our GDP is around A$1.7 trillion per year, so this welfare bill is about 10% of annual GDP. Read More here
16 December 2016, The Conversation, Full response from Craig Kelly. In relation to this FactCheck on electricity prices, Liberal MP Craig Kelly sent the following comments and sources to support his statement: Firstly, RenewEconomy – a pro renewable energy website. They quote prices (in US cents per kilowatt hour) in the USA at 12 cents per kilowatt hour and Australia at 29 cents – so on their numbers it’s actually closer to 2.4 times higher rather than double. These costs are described as “average national electricity prices” which I’d take as both businesses and households. However, I’d note that these figures can bounce around a bit subject to exchange rate fluctuations. Secondly, a report titled Electricity Prices in Australia: An International Comparison by CME (an energy economics consultancy focused on Australian electricity, gas and renewables markets) concludes: “In 2011/12 average household electricity prices in Australia (just under 25 cents/kWh) were 12% higher than average prices in Japan, 33% higher than the EU, 122% higher than the US.” Read More here
16 December 2016, The Conversation, FactCheck: Are Australians paying twice as much for electricity as Americans? Business here and households here, already we’re paying twice the cost of the US for electricity. – Craig Kelly MP, chair of the backbench environment and energy committee, ABC Radio National Breakfast interview, December 6, 2016. (Listen from 7.38). Environment and energy minister Josh Frydenberg recently left open the possibility of some form of carbon trading in the electricity sector. He later ruled out that option, saying he wanted to keep electricity prices down. Following Frydenberg’s initial comments, Liberal MP Craig Kelly said businesses and households in Australia are already paying twice as much as Americans for their electricity. Is that true? Read More here