Yearly Archives: 2015

PLEA Network

7 August 2015, Renew Economy, Cheaper renewables force closure of NZ’s last coal-fired power units. Utility-scale coal-fired power generation will soon be a thing of the past in New Zealand, after local gentailer Genesis Energy said it would close the last two coal-burning units at its coal and gas Huntly power station in Waikato, on the North Island, due to falling demand and lower-cost renewables. Stuff.co.nz reports that the 953MW plant’s remaining two coal-burning units – the two others have already been retired – will be shut down in 2018, after running “at the margin of the market” for a number of years, according to Genesis. Indeed, the gentailer said it had been on track to retire the four coal/gas fired “Rankine” units – which were commissioned in the early 1908s, when they were seen as less expensive than building extra hydropower – since 2009. “The development of lower cost renewable generation, principally wind and geothermal, investment in the HVDC link (the Cook Strait cable), and relatively flat growth in consumer and industrial demand for electricity have combined to reinforce the decision to retire the remaining Rankine units, which will deliver further operational efficiencies to Genesis Energy,” said Genesis chief executive Albert Brantley. Closure of the coal units – which Genesis said would mark the end of large scale coal-fired generation in New Zealand – is expected to produce operational and capital cost savings for the company of approximately $20 to $25 million a year. 

The shuttering of the coal plants has been welcomed by NZ green groups, and – in stark contrast to Australian PM, Tony Abbott, and his response to the likely abandonment of the proposed Adani mega-coal mine project in Queensland – even by NZ Prime Minister John Key, who is reportedly “unsurprised” by the closures. “I mean, in a lot of ways it’s unsurprising because the costs actually for Genesis, with the ETS and the likes, means that probably in the long-term coalfire power plants aren’t the most sensible plants to have,” Key said. “From New Zealand’s emissions perspective, this is actually probably a good thing.” Read More here

PLEA Network

5 August 2015, The Nation, Why Are Americans Switching to Renewable Energy? Because It’s Actually Cheaper. Fossil fuels have become an economic liability—for both consumers and energy companies. Deborah Lawrence had been watching a once-empty parking lot near Midland-Odessa, Texas, fill up with idled drilling rigs usually at work plumbing for oil in the nearby Permian Basin. In January she noticed 10 rigs, then 17 a few weeks later. As winter turned to spring, the number climbed to 35. That trend has continued across the country. By the end of July, the nationwide rig count had slipped 54 percent since the same time a year ago, indicating distress in the oil and gas industry. The most obvious culprit is the precipitous drop in crude prices. But the trouble goes deeper, as Lawrence knows—and she isn’t just a casual observer. Lawrence is a former Wall Street financial consultant who now runs the Energy Policy Forum, helping to identify and analyze trends in the industry. Read More here

PLEA Network

5 August 2015, Renew Economy, Unpacking Charles Koch’s misinformation on climate change. The Washington Post recently interviewed billionaire political activist and fossil fuel titan Charles Koch. He and his brother David have been doing a public relations tour in response to repeated criticisms of their political activities, including funding groups that reject climate science and oppose climate policy. Below is a brief examination of Charles Koch’s answers to two questions on climate policy and climate science. It’s clear to me that he would benefit immensely from a meeting with climate researchers. It would also be good for him to sit down with former Rep. Bob Inglis (R-S.C.) and other conservative leaders who are interested in developing climate policy alternatives to EPA regulations. Koch runs through a litany of debunked and suspect claims about the economic effects of the Clean Power Plan, which was just finalized yesterday. Read More here

PLEA Network

5 August 2015, Renew Economy, Australia still subsidising fossil fuels at rate of $1,712 per person a year. In a week punctuated by heavy criticism of financial support for renewable energy in Australia, a report from the International Monetary Fund has reminded us that the age of entitlement for fossil fuels never really ended, with subsidies to the sector averaging at around $US1,000 a year for every citizen living in the G20 group of the world’s leading economies.  New figures from the IMF have revealed that Australia still provides $US1,260 per head – or $A1,712 – in fossil fuel subsidies in 2015, while the US – the second-worst offender (in dollars), behind China – provides $US700 billion a year, equivalent to $2,180 for every American.

The report finds that the bulk of energy subsidies in most countries are due to undercharging for domestic environmental damage, including local air pollution – especially in countries with high coal use and high population exposure to emissions – and broader externalities from vehicle use like traffic congestion and accidents. “In many top subsidisers in percent of GDP and in per capita terms, these also reflect the setting of domestic energy prices below their supply cost.” The rest of the IMF estimates for 2015 come from payments, tax breaks and cut-price fuel. The IMF, which published a global estimate – $5.3 trillion a year – of fossil fuel subsidies in May, calculates that ending fossil fuel subsidies would slash global carbon emissions by 20 per cent. It has also estimated that this would lead to a 50 per cent cut in premature deaths caused by air pollution, while also being an economic “game-changer” for many countries, freeing up much needed funds. For advanced economies, like Australia, the IMF estimates eradicating fossil fuel subsidisation would gain enough revenue to halve corporate income tax or cover one quarter of public health spending. Read More here