Category Archives: The Mitigation Battle

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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

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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

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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

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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