PLEA Network

12 September 2016, Renew Economy, Garbage in, garbage out: Why the CCA got it so wrong. If Australia continues to rely on a renewable energy target to help meet its share of the global goal of capping global warming by 2°C, it is likely to result in new coal plants being built in the 2040s. Sound implausible? Does it sound completely crazy? Yes, but this is the advice that was given to the Climate Change Authority and presumably helped them form their controversial stance on climate policies that was delivered to the government last week. The idea that Australia, in a world aiming at cutting missions, would be likely to open new coal plants at a time when it should be hitting a zero net carbon target seems extraordinary. Yet that is what consultancy Jacobs is suggesting, even though its modelling shows that 90 per cent of Australia’s generation by 2040 would come from renewables under an extension of the RET. Here’s the graph above. Under Jacobs’ modelling – apart from the reference case where Australia ignores global warming – coal-fired power becomes extinct in all its policy scenarios in Australia by the mid 2030s. Until suddenly, in the renewable energy target scenario, it makes a comeback in the late 2040s. (That’s the blue uptick on the bottom right). “Fossil generation increases from 2040, largely driven by new CCGTs (combined cycle gas plants), although some supercritical black coal generators are also built,” it says. This is despite the share of renewable energy in generation being at 74 per cent in 2030, and peaking at 91 per cent in 2039. Quite where baseload coal plants, or gas plants for that matter, fit into that high renewables scenario is not clear, given the need for flexible generation. And just who would invest in a new coal plant two decades hence, with 90 per cent renewables, as the world nears the zero emissions target it has locked itself into through the Paris agreement, boggles the mind, but that is what we are told the modelling tells us. Read More here