5 September 2016, Renew Economy, One small gain for battery storage, one big win for fossil fuel industry. Australia’s principal policy maker for the energy markets has waved through a rule change that could accelerate the use of battery storage to provide grid stability as more renewables enter the market. But the rule maker has shocked participants with another decision that may reinforce the dominance of the big fossil fuel utilities. The Australian Energy Market Commission late last week made two rulings that it was first asked to consider way back in 2012 (such is the glacial pace of change in Australian regulatory circles) but which seen as critical as more wind and solar enter the market and old fossil fuel generators are phased out. One of the rulings was good news and largely expected: The AEMC said it would allow “unbundling” of ancillary services for the grid – which provide fast-acting balancing responses following a “contingency” event, usually the unexpected loss of a large thermal generator. This means that these services, known as FCAS, can now be more easily provided by more players, and not just the big generators, which currently control the supply (and thus the price) of FCAS services. Allowing new players like batteries and demand response loads should increase the supply of FCAS, and lower market prices. That ruling was largely uncontroversial and expected, with any opposition by incumbents lukewarm at best. The second ruling, however, has stunned some participants in the industry, because it effectively limits the amount of battery storage and new ideas – such as aggregating power plants in homes – by leaving it in the control of the major players. The proposal was to create a “demand response” mechanisms in the spot market to respond to times of high load, and high electricity prices, as were experienced in South Australia and other states in recent months, and which used to be frequent years ago, and may well become regular again as gas prices rise. Read more here
Tag Archives: oil
22 August 2016, Renew Economy, Gas bubble looms as energy ministers baulk at zero emissions target. State and federal energy ministers hailed progress they made in their COAG Energy Council summit late last week, but they may have condemned Australia to another great big investment bubble – this time in gas infrastructure. The meeting of ministers – brought forward by the apparent energy “crisis” in South Australia – resulted in a couple of promising steps that may help contain price surges of the type seen in recent months, but it seems to have ducked action on the critical issues. On the plus side, there is the creation of two new gas trading hubs that might improve transparency into a notoriously opaque market, and the potential for a new electricity inter-connector linking NSW and South Australia to be bought forward. But elsewhere, not a lot of tangible progress was made. The ministers baulked at calls to write zero net carbon emissions into the electricity market goals, despite that being implicit in the Paris climate goals that Australia has signed up to.And if the energy ministers did avoid turning the meeting into an anti-renewable jihad – as they were lobbied to do and might have been tempted under a previous federal energy minister – they did come face to face with some of the significant barriers to the rapid transition to a low emissions grid that they profess to support. One such example came from the Australian Energy Market Operator, whose chairman Anthony Marxsen stunned the audience on Friday when he suggested during a presentation that battery storage technology could be up to 20 years away from making a commercial contribution. Some dismissed this as garbage and a plug for the gas industry. AEMO is 40 per cent owned by industry “players”. Another is the painfully slow progress from the main policy maker, the Australian Energy Market Commission, which has been dragging out crucial rule changes most people believe are essential to moving to new technologies. Read more here
28 June 2016, DESMOG, Obama Admin Approved Over 1,500 Offshore Fracking Permits in Gulf of Mexico and Mainstream Media Has Ignored It. On June 24, the independent news website TruthOut broke a doozy of a story: the Obama Administration has secretly approved over 1,500 instances of offshore hydraulic fracturing (“fracking”) in the Gulf of Mexico, including during the Deepwater Horizon offshore spill disaster. Albeit released on a Friday, a day where many mainstream media reporters head out of the office early and venture to late-afternoon and early-evening Happy Hour specials at the bars, the TruthOut story has received deafening silence by the corporate-owned media apparatus. Google News, Factiva and LexisNexis searches reveal that not a single mainstream media outlet has covered the story. TruthOut got its hands on the story via documents provided by the Center for Biological Diversity (CBD). CBD explained inpress release that they “obtained the information following an agreement that settled a lawsuit challenging the federal Bureau of Ocean Energy Management’s and Bureau of Safety and Environmental Enforcement’s failure to disclose documents regarding the scope of offshore fracking in the Gulf under the Freedom of Information Act.” CBD also has published a list of all of the instances of offshore fracking in the Gulf of Mexico provided to it by BOEM, both inlist-form and in visual map form. Read More here
22 June 2016, Reuters, Court strikes down Obama fracking rules for public lands. A federal judge has struck down the Obama administration’s rules for hydraulic fracturing on public lands, a victory for oil and gas producers and state regulators who opposed the rules as an egregious overreach. The ruling, which the White House vowed to appeal, halts the administration’s efforts to address what it sees as safety concerns in the industry and reverses what producers had seen as a first step toward full federal regulation of all fracking activity. The U.S. Interior Department’s Bureau of Land Management (BLM) lacked Congressional authority to set fracking regulations for federal and Indian lands, U.S. District Judge Scott Skavdahl in Wyoming ruled late on Tuesday. BLM’s rules, issued in their final form in March 2015, would have required companies to provide data on chemicals used in hydraulic fracturing and to take steps to prevent leakage from oil and gas wells on federally owned land. Fracking, currently regulated by states, involves injection of large amounts of water, sand and chemicals underground at high pressure to extract oil or natural gas. Environmental groups and some neighbors of oil and gas wells have linked fracking to water pollution as well as increased earthquake activity in certain areas. Because most fracking in the United States takes place on private land, the case had little direct effect on existing operations. Roughly 22 percent of U.S. oil production comes from federal lands, with much of that from offshore Gulf of Mexico production, not shale fields. Still, oil producers had feared the new regulations would be a step toward federal oversight of all fracking. “This ruling sends a broad signal about who really does have the jurisdictional authority to regulate this area,” said Ryan Sitton of the Railroad Commission of Texas, which oversees the oil and gas industry in the top producing state. Read more here and here