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: Renewables
5 September 2016, The conversation, Can, or should, we save ARENA? Once again the essential development of the renewable energy sector has been stymied by short-term, opportunistic politics. Included in the Turnbull government’s “omnibus” savings bill is a A$1.3 billion cut in the funding of ARENA, the Australian Renewable Energy Agency, a cut, coming on the heels of a couple of previous cuts, that basically wipes out any future role for ARENA. The proposed cut is part of the Abbott legacy that sought to effectively close down the renewable energy sector. Although the government has presented the bill in the name of budget repair, it is also very much a political manoeuvre designed to wedge opposition leader Bill Shorten, by claiming that he had committed to these cuts during the election campaign, and recognising that a couple of the proposed cuts are either inconsistent with “traditional Labor values”, or with declared Labor policy, such as their commitment to a 50% renewable energy target for 2030. Shorten is under considerable pressure to demonstrate his bona fides on budget repair, and especially as he has expressed a willingness to “reach across the aisle”, to work with the government on this urgent policy challenge. However, both sides seem to still be stuck in campaign mode, moving from one stunt to the next. It is all about short-term politics, not good policy and good government. Read more here
25 August 2016, DESMOG, Landmark Climate Bill Passed By California Legislature. After an intense lobbying spree and threats from Governor Jerry Brown to take the measure directly to voters via ballot initiative should it fail to pass, Senate Bill 32 (SB 32) was approved by the California legislature yesterday. When it is signed into law by Brown, SB 32 will extend the climate targets adopted by the state under Assembly Bill 32 (AB32), the Global Warming Solutions Act of 2006, which required California to reduce greenhouse gas emissions to 1990 levels by 2020. The state is well on pace to meet the emissions targets set by AB 32, which is credited with having spurred developments that contributed $48 billion to California’s economy over the past 10 years while creating a half million jobs.SB 32 — together with a second bill that the state legislature just passed and Brown plans to sign, Assembly Bill 197 (AB 197) — will require the state to slash emissions to 40 percent below 1990 levels by 2030, as well as to create a committee to oversee California’s climate programs. The measures will also “prod regulators to take stronger action to cut pollution from refineries and other facilities,” especially in low-income and minority communities, according to the LA Times. “Yesterday, big oil bought a full-page ad in the capital city’s newspaper of record to halt action on climate,” Brown noted. “Today, the Assembly Speaker, most Democrats and one brave Republican passed SB 32, rejecting the brazen deception of the oil lobby and their Trump-inspired allies who deny science and fight every reasonable effort to curb global warming. I look forward to signing this bill — and AB 197 — when they land on my desk.” Diane Regas, Executive Director of the Environmental Defense Fund, said that the state of California, in passing the bills, had extended its climate leadership position for another generation. “As major economies work under the Paris Agreement to strengthen their plans to cut pollution and boost clean energy, California, once again, is setting a new standard for climate leadership worldwide,” she said in a statement. Read more here
24 August 2016, Renew Economy, Labor ready to sacrifice ARENA for medal in budget Olympics. Federal Labor appears ready to sacrifice the Australian Renewable Energy Agency it established just a few years ago as it reacts to Coalition government taunts that it is not serious about “budget repair”. In a decision that will rank – along with the Coalition’s removal of the carbon price – at the very top of the Stupid List, Labor appears to have accepted the Coalition’s challenge to pass a $6.5 billion omnibus budget repair package that includes stripping $1 billion from ARENA’s legislated funds. The move to strip funds from the agency responsible for bringing in new technologies, business models and ideas that will be critical to efforts to cut emissions appears extraordinary in a country that has possibly the strongest budget in the developed world and one of the worst records on climate and emissions policies. The decision was all but confirmed by Labor leader Bill Shorten in his address to the National Press Club, which represents an institution so obsessed with line items in the budget and being a political insider, it has virtually abandoned its coverage of actual policy. It was the Abbott government that first attempted to strip the remaining funds from ARENA, along with its attempts to abolish other institutions such as the Climate Change Authority and the Clean Energy Finance Corporation, and the carbon price. ARENA’s abolition remains policy, despite the elevation of Malcolm Turnbull, who has changed little of the Abbott-era climate and clean energy policies, despite his previous vow not to lead a government that did not take climate change seriously. But as the Climate Institute says in its new report on Wednesday, the Australian government is facing a policy train crash if it ever decides to take its commitment to the Paris climate deal seriously. Read More here