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
Category Archives: Australian Response
7 September 2016, The Conversation, Pacific pariah: how Australia’s love of coal has left it out in the diplomatic cold. Australia’s Prime Minister Malcolm Turnbull will have some explaining to do when he attends the Pacific Islands Forum leaders’ meeting in Pohnpei, Micronesia, this week. Australia’s continued determination to dig up coal, while refusing to dig deep to tackle climate change, has put it increasingly at odds with world opinion. Nowhere is this more evident than when Australian politicians meet with their Pacific island counterparts. It is widely acknowledged that Pacific island states are at the front line of climate change. It is perhaps less well known that, for a quarter of a century, Australia has attempted to undermine their demands in climate negotiations at the United Nations. The Pacific Islands Forum (PIF) – organised around an annual meeting between island leaders and their counterparts from Australia and New Zealand – is the Pacific region’s premier political forum. But island nations have been denied the chance to use it to press hard for their shared climate goals, because Australia has used the PIF to weaken the regional declarations put forward by Pacific nations at each key milestone in the global climate negotiation process. In the run-up to the 1997 UN Kyoto climate summit, Pacific island leaders lobbied internationally for new binding targets to reduce emissions. However, that year’s PIF leaders’ statement was toned down, simply calling for “recognition of climate change impacts”. Likewise, in the lead-up to the 2009 Copenhagen talks, Pacific island countries called for states to reduce emissions by 95% by 2050. But at that year’s PIF meeting in Cairns, the then prime minister, Kevin Rudd, convinced leaders to scale back the proposed target to 50%. Pacific media branded the outcome “a death warrant for Pacific Islanders”. Ahead of last year’s Paris summit, Australia again exercised its “veto power” over Pacific climate diplomacy. Over the preceding years Pacific island leaders had made their climate positions quite clear, both at UN discussions in New York and in a string of declarations including the Melanesian Spearhead Group Declaration on the Environment and Climate Change, the Polynesian Leaders’ Declaration on Climate Change, and the Suva Declaration on Climate Change. Read More here
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
5 September 2016: THE CLIMATE CHANGE AUTHORITY’S SPECIAL REVIEW ON AUSTRALIA’S CLIMATE GOALS AND POLICIES: TOWARDS A CLIMATE POLICY TOOLKIT MINORITY REPORT Professor Clive Hamilton AM Professor David Karoly 1. Introduction 1. As Members of the Climate Change Authority who have participated fully in the processes of the Special Review, we have reached the conclusion that the majority report does not respond adequately to the Review’s terms of reference and has not followed the principles set out on the Climate Change Authority Act (Section 12). We also disagree with several, but not all, of the major recommendations and conclusions of the majority report. We find the analysis used to defend some of the report’s recommendations inadequate. Overall, we view the majority report as a recipe for further delay in responding to the urgent need to reduce Australia’s greenhouse gas emissions. 2. We regret that a consensus report has not been possible but feel that in good conscience we cannot lend our names to the majority report. After consideration, we have therefore decided to write a minority report. Access full minority report here Access Climate change Authority’s Special Review here