30 August 2016, The Guardian, Victoria to permanently ban fracking and coal seam gas exploration. Activists and farmers hail decision after inquiry into onshore unconventional gas received 1,600 submissions. Victoria is to introduce a permanent ban on all onshore unconventional gas exploration, including fracking and coal seam gas, becoming the first Australian state to do so. The premier, Daniel Andrews, made the announcement on Tuesday morning and said legislation for the ban would be introduced later this year, making the current moratorium on unconventional gas exploration permanent. A parliamentary inquiry last year into onshore unconventional gas in Victoria received more than 1,600 submissions, most of them opposed to fracking and coal seam gas exploration. A statement from the Department of Premier and Cabinet said: “It is clear that the Victorian community has spoken. They simply don’t support fracking. “The government’s decision is based on the best available evidence and acknowledges that the risks involved outweigh any potential benefits to Victoria.” The government said the move would protect the reputation of Victoria’s agriculture sector, which employs more than 190,000 people; provide certainty to regional communities; and end anxiety felt by farmers about the environmental and health risks associated with fracking. Read More here
Tag Archives: State Govt
23 August 2016, The Conversation, Australia’s new focus on gas could be playing with fire. Gas is back on Australia’s agenda in a big way. Last week’s meeting of state and federal energy ministers in particular saw an extraordinary focus on gas in the electricity sector. While the meeting promised major reform for the energy sector, the federal energy and environment minister, Josh Frydenberg, highlighted the need for more gas supplies and “the growing importance of gas as a transition fuel as we move to incorporate more renewables into the system”. Gas is certainly a lower-carbon energy source than coal, but gas prices have soared as Australia begins shipping gas overseas. So what might this mean for energy and climate policy? Rising gas. In 2013-14 natural gas-fired generation rose to account for 22% of Australia’s electricity generation, although the figure falls to 12% in the National Electricity Market (NEM), which excludes Western Australia and the Northern Territory, both of which use a large amount of gas. Among the NEM states, South Australia relies the most on gas-powered generation. This means that gas generators generally set the state’s average electricity price, which has usually been higher than those in the eastern states. Average electricity prices in Victoria, New South Wales and Queensland tend to be set more often by coal power generators than by gas. Read More here
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
2 August 2016, Renew Economy, South Australia takes on networks over soaring grid charges. The South Australia government has decided to take on the monopoly electricity network operator in the state as it continues its campaign against the market dominance of the powerful energy oligopoly, and their ability to pass on huge price increases to consumers that are often blamed on wind and solar. Network costs in South Australia – like most of the country – account for more than half the average household bill. Consumers were hoping to get some relief after the Australian Energy Regulator knocked back some of the planned spending by SA Power Networks, but its ruling is now being challenged in court. Energy minister Tom Koutsantonis says he will send a senior public servant to appear before the Australian Competition Tribunal this week, accusing SAPN of “cherry picking” individual spending decisions from the AER in the hope of boosting its overall spending allowance. It’s a crucial intervention by the state government, and comes amid huge public controversy over its ambitious renewable energy plans, and the already high penetration of wind and solar that could reach 50 per cent by the end of the year. Recent high wholesale electricity prices have been blamed by many in the Coalition, and the Murdoch media, on the state’s reliance on renewables, even though most independent analysts and market regulators blame soaring gas prices, grid constraints, and other factors. South Australia has long had the highest electricity prices in the country, a point underlined by federal energy minister Josh Frydenberg last week, who also pointed out that the recent spikes in wholesale prices used to be a regular event even before the build out of large wind farms and rooftop solar. Read More here