Renewable Energy & Greenhouse
Renewable Energy & Greenhouse Update
29 September 2004Contents
Australia
Federal election: renewable energy and greenhouse
The major political parties have set out their policy approaches to renewable energy and greenhouse issues ahead of the forthcoming federal election on 9 October 2004.
Coalition (Liberal / National parties)
The incumbent Coalition government would not ratify the Kyoto Protocol, or support the introduction of a carbon levy or national emissions-trading scheme. In its recent Energy White Paper, Securing Australia's Energy Future, it undertook to provide $134 million for the development of renewable energy technologies, however, it would not increase the mandatory renewable energy target scheme (MRET) and would allow the scheme to expire in 2020.
A $500 million fund designed to stimulate investment in the development of low emissions technology would commence from 2006. Eligible technologies include electricity generation through hot dry rocks, solar power, wind and waves. The introduction of carbon geosequestration would most likely be targeted as a key greenhouse gas abatement measure under the fund, which is open to any technology that has the potential to be commercially available by 2030. Carbon geosequestration involves capturing carbon dioxide emissions, compressing them into a liquid form and then injecting them under pressure into deep underground geological formations.
Labor Party
The Labor Party would ratify the Kyoto Protocol and introduce a national emissions-trading scheme similar to that of the European Union. The scheme would be introduced no later than 2010. The Labor Party has also committed to increasing the MRET from two to five per cent by 2010, although it has not set a target beyond that point. A greenhouse trigger would be introduced into the Environment Protection and Biodiversity Conservation Act 1999 (Cth) to regulate projects that are likely to release large volumes of greenhouse gas emissions.
Democrats
The Democrats support the ratification of the Kyoto Protocol, and the introduction of a carbon levy and national emissions-trading scheme. A reduction in greenhouse gas emissions by at least 20 per cent by 2020, and 50 per cent by 2050 is also supported. Further, the Democrats argue that the MRET ought to be increased to 10 per cent by 2010 and 20 per cent by 2020.
Greens
The Greens share the same policy position as the Democrats, except it is argued that there should be a reduction in greenhouse emissions by 80 per cent by 2050, rather than 50 per cent. In addition the Greens argue that a national mandatory target to increase Australia's energy efficiency by 30 per cent by 2020 ought to be introduced.
More action on climate change demanded
Forty of Australia's senior business and industry leaders, scientists, and environmentalists have demanded that the next Federal Government act more decisively to control climate change. In letters sent to Prime Minister John Howard and Leader of the Opposition Mark Latham, they argued that the current approach is inadequate in reducing Australia's greenhouse gas emissions.
Trial carbon geosequestration project proposed
According to The Australian (14 September 2004), a number of sites around Australia are currently being considered for a pilot project for large-scale carbon geosequestration. A trial project would test the technical and cost issues associated with carbon geosequestration, monitor the process of pumping gas underground, and assess the relevant health and safety issues. Chief Executive of the Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC), Dr Peter Cook, indicated that possible locations for the project include the Otway basin in southern Victoria, the Bowen-Surat basin in southeast Queensland, and the Perth basin in Western Australia.
The Otway basin is currently the most likely location for the trial. Victorian State Energy Minister Theo Theophanous has indicated that the Victorian government is likely to make an announcement regarding a trial project in its forthcoming policy statement on greenhouse gas reductions to be launched in October 2004. The policy statement is also likely to include a proposal for an emissions-trading scheme, and to reaffirm that the development of carbon geosequestration projects should not be at the expense of supporting renewable energy technologies.
Announcement on state-based emissions trading scheme imminent
According to The Age (18 September 2004), the Victorian government and other states are close to finalising a state-based emissions trading scheme. The plan is likely to restrict companies' greenhouse gas emissions by forcing companies that exceed their quota to purchase credits from other companies. The financial penalty would be an incentive for companies to switch to more environmentally friendly production techniques or to improve their energy efficiency levels. Certain types of industries would be exempt.
NSW Greenhouse Gas Abatement Scheme report released
The administrator of the New South Wales Greenhouse Gas Abatement Scheme (scheme), the Independent Pricing and Regulatory Tribunal of NSW (IPART), has released its report on the operation of the scheme and compliance during 2003. The report discusses whether benchmark participants have complied with their obligations, the operation of the registry, and issues for the future that have been identified in implementing the scheme.
There were 31 benchmark participants in 2003, of which 22 were compulsory participants. All of these participants have reduced their emissions to their benchmark levels or have carried forward a small shortfall within the permitted 10 per cent buffer. No participants incurred a penalty. IPART has accredited 113 projects that were eligible to create certificates for abatement activity in 2003.
Approval granted for Victorian Bald Hills wind farm
Victorian Premier Steve Bracks has announced that environmental approval has been granted for the 104 megawatt Bald Hills wind farm in South Gippsland, Victoria. State Minister for Planning, Mary Delahunty, said that approval was granted on the condition that a comprehensive environmental management plan was put in place.
Large energy users to be audited for energy efficiency
According to The Australian Financial Review (28 August 2004), Australian state and federal ministers have agreed on requirements for large energy users to audit their commercial and industrial sites for energy efficiency. The Ministerial Council on Energy agreed to implement the first stage of the national framework for energy efficiency within the next three years.
In brief
- Report on Australia's energy sector released. The Australian Bureau of Agriculture and Resource Economics (ABARE) has released a report on Australia's energy sector. It covers all aspects of production and use, from natural resources through to final consumption. Click here for a full copy of the report.
- Report on energy efficiency improvements requested. The federal government has asked the Productivity Commission to report within the next 12 months on the economic and environmental potential offered by energy efficiency improvements.
- Demand for national uniform greenhouse policy. The Energy Retailers Association of Australia is demanding a single greenhouse gas abatement policy in Australia. It says that the current array of short term state and federal government greenhouse gas abatement measures are fragmented and inconsistent.
- Australian exports to Japan likely to fall due to Kyoto Protocol. According to a study prepared by the ABARE, Australia's coal and natural gas exports to Japan are likely to consistently fall up until 2015 as Japan seeks to meet its obligations under the Kyoto Protocol.
- Victorian Energy Retail Code released. The Essential Services Commission has released its final decision on the Victorian Energy Retail Code. From 1 January 2005, the existing retail codes for gas and electricity will be combined into a single code. The new code aims to reduce complexity and compliance costs, and to establish national consistency in retail service standards.
- Victorian National Party releases policy on coastal wind farms. Victorian National Party Leader Peter Ryan has launched a policy statement mandating a twelve month moratorium on coastal wind farms, and laws that would provide local communities with the power to block future coastal wind farms.
- Opposition to proposed Macedon wind farms in Victoria. According to The Age (28 August 2004), there is significant community opposition to plans to construct at least 200 wind turbines in the Macedon Ranges Shire. Hydro Tasmania, Queensland government-owned Stanwell, and Victorian firm Wind Power are all believed to be exploring sites in the region.
- Capital works in Queensland. Premier Peter Beattie has allocated $139 million for a capital works project to upgrade the electricity transmission and distribution systems that supply the Brisbane CBD area.
- New panel appointed to oversee QLD energy reform. Queensland Energy Minister John Mickel has established an independent body to oversee the implementation of the recommendations made in the Electricity Distribution and Service Delivery Report.
- Wind power to represent two-thirds of electricity generation in South Australia by 2010. According to the Electricity Supply Industry Planning Council, wind generation is expected to account for nearly two-thirds of total non-scheduled generation in South Australia by 2010.
- ACT greenhouse gas emissions Act receives assent. The Electricity (Greenhouse Gas Emissions) Act 2004 (ACT) has received assent. It aims to reduce greenhouse gases caused by electricity production, and is modelled on the Greenhouse Gas Abatement Scheme in operation in NSW.
- Pacific Hydro to invest $1.1 billion more in wind power and expand into China. According to managing director Jeff Harding, Pacific Hydro aims to expand its wind-power business by building between 500 and 700 megawatts of wind capacity in the next four years. The program will require the company to spend up to $1.1 billion. According to The Financial Review (13 September 2004), Pacific Hydro is also in talks with an undisclosed company to form a joint venture to enter the Chinese renewable energy market.
- Construction of ActewAGL wind farm to commence. Construction of the first wind farm to supply electricity direct to ActewAGL is expected to commence in nine months. The aim is to have approximately 30 per cent of ACT household energy needs supplied by three or four wind farms in which ActewAGL would be a joint venture partner. Testing is currently being conducted on four sites.
- Alinta scheduled to commence construction of wind farm in September 2004. WA-based firm Alinta has announced that its wind farm project south-east of Geraldton became unconditional after the finalisation of all necessary agreements, including the introduction of electricity market balancing arrangements by the state government. The wind farm is expected to produce 90 megawatts of electricity, at a cost of $200 million.
- CSR withholds $400 million in funding for renewable energy projects. CSR has decided to withhold almost $400 million for the development of renewable energy projects in north Queensland while the federal government refuses to change its stance on the renewable energy sector.
- Petratherm awarded new licences. Geothermal company Petratherm has been awarded two new geothermal licences for sites adjoining the company's Paralana tenement in South Australia. They cover a region identified by historical seismic data of significantly increased sedimentary cover, up to three kilometres thick.
- Geodynamics announces Habanero-2 well on target. Geothermal company Geodynamics has announced that its Habanero-2 well has intersected its target hot granites on schedule.
Russian government moves towards ratifying Kyoto Protocol
According to Environment Daily (24 September 2004), the Russian government has taken significant steps towards ratifying the Kyoto Protocol. Various reports in Russian and international media suggest that draft ratification documents have been approved within the government and are almost ready to be presented to parliament. Each ministry has now been asked to recommend ratification.
Other reports, however, state that the Russian government may delay official ratification until December 2004. Some government members are understood to be arguing that the treaty would not lead to significant new investment or sales of emission quotas.
Global carbon dioxide emissions could double by 2050
According to a report released by the World Business Council on Sustainable Development, global carbon dioxide emissions could double by 2050 if appropriate measures are not introduced. The report states that natural gas, nuclear energy, renewable energy, bio-products and low energy appliances are appropriate methods to reduce the levels of carbon dioxide.
European Union approves linking directive
According to Point Carbon (15 September 2004), EU foreign ministers have formally approved rules to link the EU's new climate emissions trading scheme to the Kyoto Protocol's flexible mechanisms. The 'linking directive' will give firms direct access to credits from the clean development mechanism (CDM) and joint implementation (JI) mechanisms as a means of meeting their emissions caps.
American Electric Power to build plant with clean-coal technology
According to World Environment News (1 September 2004) American Electric Power (AEP) plans to spend $1.6 billion to build a power plant using a technology that reduces emissions. By 2010 it proposes to build at least one plant that would be able to produce as much as 1,000 megawatts of power and use a technology that pulverises coal into gas before burning it, substantially reducing harmful emissions of nitrogen oxides, sulphur dioxide, mercury and carbon dioxide.
United States government acknowledges global warming
According to The Sydney Morning Herald (28 August 2004), the United States government has conceded that emissions of carbon dioxide and other heat-trapping gases were the only likely explanation for global warming. This reversed the previous White House position which refused to link carbon dioxide emissions to climate change.
In brief
New Zealand
- The second round of the New Zealand government's Projects to Reduce Emissions program has been announced. The program supports initiatives to reduce emissions of greenhouse gas emissions over the first Kyoto commitment period (2008–2012) by awarding tradable emission units. The second round is offering six million emission units, up from the four million offered in the first round.
- An application by Genesis Energy to build the 19 megawatt Awhitu Wind Farm near Auckland has been dismissed by the commissioners appointed to consider the application. The commissioners found the effects of the West Coast wind farm on human health, public safety, property values, traffic, erosion and site stability to be acceptable. However, they considered that the potential effect of the wind farm on Maori values, horse activities and visual impacts was inappropriate.
- Meridian Energy has announced plans for a new wind farm near Mossburn, Southland. The wind farm is likely to comprise between 30 and 40 turbines.
- Los Angeles Mayor Hahn has ordered that the city withdraw from a planned $2.1 billion coal power plant in Utah. Hahn said that the city's $215 million share of the project should be spent on cleaner energy sources.
- Xcel Energy Inc has stated that the United States government is likely to impose carbon dioxide emission regulations on the power industry in the foreseeable future. In response, the company is implementing several voluntary carbon dioxide reduction programs, including the development of wind energy.
- According to Point Carbon (8 September 2004), even though Canada has ratified the Kyoto Protocol and the United States has not, Canadian greenhouse gas emissions are increasing at a higher rate than the United States. United States greenhouse gas emissions have risen 14 per cent since 1990, while Canadian emissions have grown by 20 per cent.
- The Mexican government has launched a pilot program in conjunction with the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) to adopt internationally recognised standards for measuring greenhouse gas emissions by local businesses. The program aims to develop a national corporate greenhouse gas accounting and reporting program by the end of 2004. It will focus on assisting businesses with the preparation of greenhouse gas inventories, identification of cost effective reduction and mitigation opportunities, and programs and projects to reduce greenhouse gas emissions.
- According to Asia Pulse (21 September 2004), China is speeding up the pace of exploiting wind energy resources, and the Poyang Lake basin is now listed as one of the key areas where wind energy resources will be utilised. Poyang Lake is one of the largest freshwater lakes in China and has significant wind resources. Preliminary exploration work has commenced on seven wind fields, and exploration work on the remaining five will be completed in the next few years.
- According to EnergyReview.Net (31 August 2004), Talisman Energy Inc and co-venturer Scottish and Southern Energy will construct a US$44.05 million deepwater wind farm demonstration project adjacent to its offshore Beatrice field, located 25 kilometres off the east cost of Scotland.
- According to Point Carbon (31 August 2004), the Bulgarian energy sector will receive 6 billion euros in investment by 2007. The energy projects will represent 5.7 per cent of the country's output by 2007, and are aimed at improving energy efficiency and competitiveness, as well as modernising the sector.
- Sustainable Energy Ireland (SEI) has stated that up to 4,000 jobs could be created within the fuel supply industry and 9.9 million tonnes of carbon dioxide emissions would be saved annually by 2010 if Ireland utilised biomass to its full potential. SEI states that Ireland has the best growing conditions for wood biomass in Europe.
- The Deputy Governor of Thailand's Provincial Electricity Authority has announced the implementation of a pilot program for 560 villages nationwide to use solar power to generate electricity.
- Environmental Affairs and Tourism Minister Marthinus van Schalkwyk has stated that South Africa needs to address the nation's overdependence on coal-based energy. Despite environmental and health concerns, South Africa generates approximately 95 per cent of its power from coal. He argued that in order to diversify the country's energy sources, other options must be explored such as gas, solar power, wind generation, and hydroelectric power.
- Energy Company New Park Energy Ltd has announced plans to invest US$400 million in the alternative energy sector to generate 400 megawatts in phases. The first phase will include the installation of a 45 megawatt wind farm at Karachi.
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