‘Deal-breaker': Queensland flags renewable energy as key to emissions deal

The Queensland government warns it may block the Turnbull government's signature energy plan, saying that it won't sign any deal that undermines the state's ambitious renewable energy target.

Labor's states and federal counterparts will discuss
 the National Energy Guarantee on Friday.

Anthony Lynham, the state's energy minister, told Fairfax Media that backing for the National Energy Guarantee hinges on whether Queensland's target of making 50 per cent of its electricity renewable by 2030 will not be affected.

Read Peter Hannam’s story from The Sydney Morning Herald - “‘Deal-breaker': Queensland flags renewable energy as key to emissions deal.”

Counting the cost of Tony Abbott’s war on renewables

Tony Abbott did his best to kill off renewable energy when he was PM—and he’s still trying it seems. But it is interesting to look back at the consequences of his efforts. The war on renewables was meant to reduce electricity prices. But it has done the opposite—and a lot more.

Tony Abbott did his best, and is still
trying to kill off renewables

The big negative for renewables has been that the uncertainty created by the war led to a collapse in investment in large renewable energy projects. And the compromise 2020 large-scale renewable energy target (LRET), reduced from 41,000 GWh to 33,000 GWh, is now driving much less renewable energy development.

However, even the reduced LRET still means a lot of renewable generation capacity has to be built fast, from a near standing start, to generate 55% more renewable electricity than was produced in 2016, by 2020.

A report for the Clean Energy Regulator estimates an additional 6000 MW of generation capacity will be needed to meet the reduced 2020 target—a doubling of the renewable generation capacity installed since 2001. This has driven up the price of large-scale generation certi cates (LGCs) from a long- term price of $30–$40 to $80–$90 (see box).

Read the RenewEconomy story by Alan Pears - “Counting the cost of Tony Abbott’s war on renewables.”

Garbage in, garbage out: Why the CCA got it so wrong

Giles Parkinson explains 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.

Read the story by Giles Parkinson in RenewEconomy - “Garbage in, garbage out: Why the CCA got it so wrong.”

Origin Energy plunges into solar pool

The Moree solar farm in New South Wales.

Origin Energy has signed up for its first ever contract to purchase electricity from a large-scale solar project in a further sign that the renewable energy sector is coming back to life after being effectively stalled over the past few years.

The utility has committed to a 15-year deal to buy all the output of a $164 million solar venture built by a Spanish company and already operating near the northern NSW town of Moree. The purchase will help meet Origin's liability under the 2020 Renewable Energy Target legislation, which was revised last year.

Players in the wind and solar power sector have been noting a renewed surge of interest in the Australian renewable energy sector after the Turnbull government's support for the RET helped drive a rise in the prices of renewable energy certificates, which underpin the target. But the latest deal won't kick-start a new project given Fotowatio Renewable Ventures had already built the solar farm with the backing of US private equity firm Denham Capital as well as with funding from government agencies.

Read Angela Macdonald-Smith’s story in today’s Melbourne Age - “Origin Energy to buy swathe of solar power output.”

Australian government's disdain for renewable energy continues

Giles Parkinson.

Australia has chosen not to send any government representatives to the first major post Paris climate change conference, as new data confirms how the Coalition government has effectively killed the renewable energy target as an effective policy mechanism.

In 2015, the world invested a record $US329 billion in renewable energy. But in Australia, the RET – the country’s primary policy mechanism, has attracted just $15 million in investment in nearly two years.

The data, from Bloomberg New Energy Finance, confirms that since the Abbott government announced its review into the RET in early 2014, the scheme has been at a standstill.

Read Giles Parkinson’s story on RenewEconomy - “Australia snubs 1st major post-Paris summit after killing renewables target.”

Renewable by 2030 - "But not going to happen": Giles Parkinson

T

he Australian Greens have now launched details of how they would meet their long held policy proposal to take Australia to 90 per cent renewable energy for its electricity needs by 2030.

The first thing that should be noted is that it is not going to happen. And that’s not because the technology doesn’t exist to effect the transition, it does: The Australian Energy Market Operator assured us of that in a detailed analysis completed in 2014, and said it may not be any more costly than business as usual.

The reason it won’t happen is that the Greens would not get into power fast enough to effect that change. Even a power sharing arrangement with Labor couldn’t achieve its policy goals, because Labor – despite its proposed 50 per cent renewable energy target by 2030 – remains too wedded to the fossil fuel industry.

Read Giles Parkinson’s story on Reneweconomy - “How Australia could reach 90% renewables by 2030.”

RET frustrations creating delays and divisiveness

F

rustrations with decisions on the Renewable Energy Target are creating both delays and divisiveness.

A story in today Sydney Morning Herald by Lisa Cox - “'Frustrated' renewable energy industry makes another plea to major parties” – says, “An increasingly agitated renewable energy industry has issued another plea to the government and opposition to end the stalemate over Australia's renewable energy target.”

The procrastination of all involved, particularly the Abbott Government, is simply wasting time that the world, and by implication Australia cannot afford.

Naturally, the blame game is in full swing and sadly while this finger pointing continues, Australia is doing little to sustain and build it renewable energy industry.

Contempt for climate matters softening

Contempt for climate matters by Australia’s Abbott Government appear to be softening.

Of at least that is the view of The Guardian in it story: “Abbott government shows signs of shifting ground on climate policy”.

The Guardian says: “The Abbott government could be shifting ground on climate policy – with a more conciliatory approach in negotiations over the renewable energy target and consultative processes to set a new greenhouse emissions reduction target to apply after 2020.

“Guardian Australia understands the government is preparing to make significant concessions in talks with Labor to try to strike a bipartisan deal over the RET. Talks resumed last week and are set to continue,” it reports.