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  • Weatherill's coal seam cash injection | Business Spectator
    Peter Reith trade union leader Paul Howes and Australian Industry Group CEO Innes Willox in a joint op ed for the Herald Sun is to put at risk jobs and to expose families and pensioners to fast rising gas price spikes on top of half a decade of unwelcome power bill increases As evidenced by the story of the shale oil and gas revolution in America really high prices send the upstream petroleum industry hunting for new resources to cash in on the situation an outcome popular with both factory owners and gas producers even if the former are aghast at what comes first What the Napthine and O Farrell governments may not yet really appreciate is that a dash for gas in central Australia in South Australia s Cooper Basin delivers them a lose lose outcome Not only do their governments not get to benefit from hundreds of millions of dollars in annual tax payments plus new jobs but the several years of price strife probably from 2014 to 2018 on present indications will impact heavily on the large already embattled manufacturing sectors in their states potentially according to lobbyist Manufacturing Australia costing 200 000 jobs Meanwhile South Australian mineral resources minister Tom Koutsantonis is only too pleased to talk up the coming energy revolution for his state underpinned by some 3 5 billion in petroleum exploration expenditure over the next five to seven years Just how much tight gas and shale gas is in the Cooper Basin which has been sending conventional natural gas to Adelaide and the Sydney Newcastle demand hub for four decades is anyone s guess A Texan investment bank Tudor Pickering Holt has published a report hailing the Cooper as one of the best shale prospects outside North America and pointing to the prospect of strong gas prices allied to substantial existing production and pipeline infrastructure as reasons for investors to sit up and take notice Which is what Santos Beach Energy Senex global heavyweights Chevron and BP the Norwegian giant Statoil and others are doing as they envision not only a domestic market eager for their production but also the prospect of being able to sell gas to the LNG exporters in Gladstone Apart from geology and infrastructure Koutsantonis says the benefit for the petroleum industry in focussing on South Australia is that his government recognises the need for a clear message of stability when dealing with industry and community His state he adds offers companies the certainty they are being denied in other jurisdictions His government clearly recognises the dangers of shifting policy and regulatory goal posts a dig at both the Coalition in New South Wales and last writhings of the Gillard regime in Canberra It s interesting to see the Weatherill government faced with an election next year where the pundits believe it will struggle for survival adopting this stance while the Napthine government across the border also balanced on a political knife edge is doing its best to duck and weave on the issue The added difficulty for the green tinged ones in coming to grips with the South Australian energy revolution is that it also manifests itself in the strongest support in the country for wind power and in encouragement for geothermal and solar power If geothermal energy is ever to actually win through in the east coast market it will be via the support it has received in South Australia Meanwhile Koutsantonis expects 200 wells to be drilled in South Australia between now and 2020 exploration activity he declares an enormous boon for the state you needn t hold your breath waiting for the Victorian or New South Wales regimes to say anything similar before their respective elections in 2014 and 2015 The radical environmental movement of course is as loud in South Australia as it is elsewhere in declaring its undying opposition to the state government s direction accusing Weatherill and his government of being on a ruinous road to nowhere The difference is that they are dismissed in Adelaide where it matters And the petroleum push in South Australia is not limited to the desert areas Federal industry minister Ian Macfarlane has accepted a bid from Chevron to explore offshore in the Great Australian Bight a move the environmentalists view with even more horror than CSG development if that is possible The company is committed to spending 500 million on the frontier search having also bought into the Cooper Basin by paying acreage holders 361 million P S Even substantial new developments in the Cooper Basin won t lead to cheap gas for domestic users i e the prices paid in the past but there is every chance they will deliver fuel to the big southern Australian markets at well below the 9 GJ and higher spikes that the present imbroglio is threatening How many factories will still be around to use it is an interesting question Print this page More from Keith Orchison 30 Dec Unplugging the power discord 18 Dec Searching for a bright spark in the power debate 10 Dec Still no solution for power bill shock 25 Nov Abbott s a few sparks short of a global power agenda 11 Nov Passing the electricity price baton Related articles 13 Jan Indonesia ban no issue Palmer 10 Jan OM Holdings CEO resigns 10 Jan Korea China jostle for Aust resources 10 Jan Fed govt should support Alcoa ALP 10 Jan Solar and wind competitive with fossil fuels Gov t economist More from Business Spectator Technology Adapt or die Commercial The Future of Energy Family Business Alan Kohler s Family Business China China Spectator Please log in or register to post comments Comments on this article Comments Policy R Ambrose Raven Mon 2013 11 04 08 57 Another display of ostentatious greed and arrogant contempt for good policy We still await an explanation as to why huge LNG projects were approved when there was no excuse for the decision makers not knowing that

    Original URL path: http://www.businessspectator.com.au/article/2013/11/4/resources-and-energy/weatherills-coal-seam-cash-injection (2014-01-12)
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  • Paul Howes' bipartisan gas burn | Business Spectator
    than coal using less water and less land Gas should be seen as a key transitional source for an Australian move to a cleaner energy economy Howes added but in New South Wales gas has managed to become synonymous with environmental destruction The problem he added is that the state is being badly let down by its politicians Across the border in Queensland Howes pointed out the coal seam gas industry is now employing 27 000 people and will soon be paying 850 million in state taxes annually to help fund roads hospitals and schools The political situation he said is little different in Victoria where the word in Melbourne is that the Liberals will end up doing nothing about the Peter Reith report on CSG because they are so scared of the Greens and despite the industry potentially providing a much needed lifeline to the ailing state manufacturing industry In Victoria Howes said it seemed likely that we will not even see the lifting of the ban on exploration that is needed to discover the CSG potential Napthine s folding to the demands of the Greens may win praise from some sections of the community but it will be the manufacturing workers of Victoria who will ultimately lose out Meanwhile in New South Wales he argued a strange phenomenon had taken hold he said involving extreme opinion from the Left and Right of the public spectrum Howes accused the major parties in New South Wales of resembling a couple of potential inheritors trying to humor a mad old aunt The Coalition in a spectacular display of over reaction after two years of soothingly telling activists they were absolutely right to be terrified of CSG had put a ban on activity within two kilometres of residential areas and ordered the state s chief scientist to review all existing activity while Labor decided they could go one better by saying forget the review how about a straight up ban on all CSG activity in all water catchment areas Howes added This approach is not about improving rigorous environmental safeguards It s about piling up messy legislative hurdles in to a huge cumbersome pile until nothing can happen and investors get fed up and leave He accused the major party politicians of straight up cowardice Meanwhile Howes argued that New South Wales Labor are missing a massive opportunity because they should be moving forcefully to occupy the middle ground on the issue Exploiting the state s CSG resources he said will mean cheaper gas for households cheaper energy for industry more accessible feedstock for all sorts of manufacturing and more jobs Keith Orchison director of consultancy Coolibah Pty Ltd and editor of Powering Australia yearbook was chief executive of two national energy associations from 1980 to 2003 He was made a Member of the Order of Australia for services to the energy industry in 2004 Print this page More from Keith Orchison 30 Dec Unplugging the power discord 18 Dec Searching for

    Original URL path: http://www.businessspectator.com.au/article/2013/10/28/resources-and-energy/paul-howes-bipartisan-gas-burn (2014-01-12)
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  • O’Farrell's double-barrel gas plan will backfire | Business Spectator
    chief executives from its leading company membership drawn from users and energy suppliers to consider the current issues not least the CSG impasse One of the council s prominent chief executives BlueScope boss Paul O Malley has described the gas situation as a looming train wreck and Macfarlane is telling media that he wants the NSW problems resolved by the year s end Macfarlane thinks the situation sufficiently serious to warrant holding a meeting of state and territory governments before Christmas to seek a solution Meanwhile O Farrell via Ficarra in a message that does not contain a single syllable on the high and rising concerns about delivery of an adequate gas supply to the NSW economy is telling the community that his government has introduced the toughest CSG laws in Australia to balance the land use needs of our important farming and resource industries The letter s main thrust is to explain that the government has already barred 2 3 million hectares of the state to CSG activities is looking at excluding another half a million hectares and is considering under its gateway regime steps to strongly regulate CSG intrusions on a further three million hectares of agricultural land These proposals demonstrate that the state government is resolved to strike a balance so that agriculture communities and resource development can co exist Ficarra writes While this is going on the NSW Labor opposition is seeking from its position of extreme parliamentary weakness to push legislation to ban CSG activity is areas around the state s water storages for Sydney the Illawarra the Blue Mountains the Southern Highlands and Shoalhaven some 371 000 hectares The upstream petroleum industry meanwhile is pointing out that even where eventually the state government approves a CSG project the merit appeals process in the regulatory regime means that third parties can tie up companies in protracted court battles Santos James Baulderstone who is spearheading the company s 2 billion attempt to extract CSG from the Pillaga area says the appeal set up makes investment almost impossible However frustrating it may be for wannabe suppliers and worried consumers politics is now the key to this situation As we go in to 2014 we can be certain that Premier O Farrell is increasingly focussed on the state election of March 2015 Ficarra s communication highlights this O Farrell s dilemma is that almost nothing his government can now do will ward off substantial further wholesale price rises for gas feeding in to retail bill spikes that a million households and a large number of businesses will find unpalatable This is an east coast situation not just one for NSW Origin Energy in its latest roadshow for stock market analysts is pointing to eastern Australia s wholesale gas prices rising from just under 6 per gigajoule now to around 10 GJ by 2017 They were under 4 less than three years ago How could a Pillaga development approval at some point in 2014 see a significant gas flow for New South Wales by 2016 or even 2017 The environmental movement views this outlook as a plus in its campaigning against CSG in NSW Its line of chat is that exposure to global prices via the Gladstone LNG developments will see wholesale prices increase substantially regardless of these developments so why put a lot of wells all over the state and endanger the water supply and productive farming land just to give the gas industry profits Politically the O Farrell government has spent the best part of three years putting itself in a lose lose position on this issue and reading the Ficarra missive one wonders if a cold blooded decision has been made at the top to save the furniture in rural and regional seats and leave the hard CSG development decisions to be made in a full blown crisis post poll Just how reckless this would be in terms of economic and social disruption and not only in NSW given the prospect of gas outs in the state during peak demand may explain Macfarlane s we re running out of time statements and pressure for yet another summit meeting with the federal government in the chair How more jaw boning can save the day in the relatively short term for the east coast manufacturing sector and thousands of employees in high gas use industries is hard to see Keith Orchison director of consultancy Coolibah Pty Ltd publisher of the This is Power blog and editor of OnPower newsletter was chief executive of two national energy associations from 1980 to 2003 he was made a member of the Order of Australia in 2004 for services to the energy industry Print this page More from Keith Orchison 30 Dec Unplugging the power discord 18 Dec Searching for a bright spark in the power debate 10 Dec Still no solution for power bill shock 25 Nov Abbott s a few sparks short of a global power agenda 11 Nov Passing the electricity price baton Related articles 13 Jan Indonesia ban no issue Palmer 10 Jan OM Holdings CEO resigns 10 Jan Korea China jostle for Aust resources 10 Jan Fed govt should support Alcoa ALP 10 Jan Solar and wind competitive with fossil fuels Gov t economist More from Business Spectator Technology Adapt or die Commercial The Future of Energy Family Business Alan Kohler s Family Business China China Spectator Please log in or register to post comments Comments on this article Comments Policy R Ambrose Raven Tue 2013 10 22 10 24 We still await an explanation as to why projects were approved when there was no excuse for the decision makers not knowing that most of us would derive nothing but extra cost from the recently created Eastern States LNG export push that is driving up Eastern States domestic gas prices to international levels from which the only obvious beneficiary are energy transnationals Yet America s benefits from fracking derive from the cheap gas it supplies especially to

    Original URL path: http://www.businessspectator.com.au/article/2013/10/22/resources-and-energy/ofarrells-double-barrel-gas-plan-will-backfire (2014-01-12)
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  • Business, be careful when you wish for reform | Business Spectator
    to move on before spotting a speech by the organisation s recently re appointed president Tony Shepherd delivered at the end of September to a University of Wollongong forum In it Shepherd dwelling on population growth and the national infrastructure deficit had a message for the body politic Get on with it Make decisions Get work under way No more task forces No more time wasting In this talk he mainly focused on construction road rail a new Sydney airport and so on But laid alongside Westacott s comments the common thread is the urgent need to talk less and implement more Just how hard this is to actually achieve is immediately thrown up by the fact that Westacott s argument is for more planning achievement in fact of integration of Australia s energy policy By this she means the whole gamut from driving towards more LNG development meeting east coast domestic gas needs and completing NEM reforms to deliver reliable and competitively priced electricity This comes at a time when the Australian Energy Market Commission is calling for development of a 10 to 15 years strategic plan for domestic gas production and marketing In Queensland we have the Newman government trying to create a 30 year electricity strategy with what appears to be a rolling five year horizon Meanwhile the Australian Chamber of Commerce Industry the Business Council s rival for the ear of the federal government as the key voice of business is taking a hard line In a commentary published during the election campaign clearly anticipating Tony Abbott s big win ACCI wants abolition of the carbon price the renewable energy target and other green programs and yes a review of regulation to place more weight on the views of energy users The association also wants a far more neutral policy for choices of the fuel mix for electricity and an abandonment of the deliberate skewing of policy away from less costly options including modern coal fired generation This don t just stand there do something approach both organisations are pushing undoubtedly has its merits There is a strong case for completing east coast privatisation of electricity supply assets For cutting through the cat s cradle of multi government project approval regulation For attacking peak power issues through rolling out new metering technology and allowing time of use charges For deregulating retail electricity prices For resolving the mess the RET has become But there is also a strong case for governments to ensure that they know where they are heading and that they are carrying at least a majority of the community with them The last time our governments decided to do something big time with electricity supply they rewrote the power network regulations to drive investment in infrastructure That was in 2006 and seven years later the current crop of pollies are struggling to cope with the impact of a 42 billion capex outlay that has almost doubled power bills made worse by a number of jurisdictions allowing trade unions to persuade them to substantially increase network reliability standards adding to the costs Equally a form of collective madness over solar energy has led to a situation where the unforeseen consequences of impacts on a GFC afflicted power market and on new stresses for networks plus the subsidy cost burden thrown on to the bulk of households has created another cat s cradle This one is even more entangled because the solaristas are striking back by calling not without reason for the impacts of the huge decade long splurge on air conditioning and its impact of network costs at the expense of those without air cons to be taken in to account too And so on It seems to me that a considerable part of the new energy agenda can be given momentum by Tony Abbott and his team very carefully assembling an energy action plan for the Council of Australian Governments and then providing an effective incentive for the other jurisdictions to actually do what they promise Julia Gillard ranted less than a year ago about taking a big stick to the premiers at CoAG to push her power price agenda Well that s history What Abbott needs I suspect is a big carrot like the one Keating waved to get quite a lot of reform accomplished in the early 1990s But we need a workable plan before the carrot The bottom line The Business Council leadership is undoubtedly right that things can t go on as they have for most of the past decade But they need to also remember to beware what they demand they may get it Collectively can they and the other industry associations come up with one set of proposals for an action agenda on energy in time for Tony Abbott to digest it and then sell it effectively to the CoAG meeting he is planning before the year s end They don t have long to do it Keith Orchison director of consultancy Coolibah Pty Ltd and editor of Powering Australia yearbook was chief executive of two national energy associations from 1980 to 2003 He was made a Member of the Order of Australia for services to the energy industry in 2004 Print this page More from Keith Orchison 30 Dec Unplugging the power discord 18 Dec Searching for a bright spark in the power debate 10 Dec Still no solution for power bill shock 25 Nov Abbott s a few sparks short of a global power agenda 11 Nov Passing the electricity price baton Related articles 13 Jan Abbott to pursue red tape cuts 13 Jan Palmer wants to repeal Newman laws 12 Jan Israel s Sharon dead at 85 12 Jan Vic energy minister to step down 12 Jan Trade pact is close Robb More from Business Spectator Technology Adapt or die Commercial The Future of Energy Family Business Alan Kohler s Family Business China China Spectator Please log in or register to post comments Comments on

    Original URL path: http://www.businessspectator.com.au/article/2013/10/14/politics/business-be-careful-when-you-wish-reform (2014-01-12)
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  • Turning up the heat on the gas debate | Business Spectator
    Wales 20 per cent Second the big end of the market can be divided in two companies that use gas in special applications or to directly generate their own electricity and steam and companies that use it as a feedstock to make other products The former she asserted often have alternatives to gas not without cost but they do have the opportunity to shift technologies and swap fuels The latter she added want to feed a steady diet of gloom about gas availability and price but this is not true gas is available just not at the low prices they have been accustomed to pay Her company she says is struck by the tentativeness of some users to adjust to a changing market and to grasp the opportunities that are available Tanna s third point is that there is a helluva difference between inferred resources of gas and bankable reserves where there is a high degree of comfort they can be produced Moving from inferred to bankable she points out is expensive and risky business for gas suppliers The significant volumes that have been upgraded to 2P proven and probable in Queensland have only done so because of LNG driven investment It is not clear said Tanna that the gas users who make considerable noise about gas availability would be in a much better position today if international customers had not entered the Queensland market six years ago She argues that the most important task for governments is to grow exploration and production starting with releasing more acreage Queensland she said has no pattern or discernible strategy on exploration The acreage release in 2011 was 86 700 square kilometres but in 2012 it was 150 square kilometres and so far this year it has been 9 078 square kilometres The second task for policymakers she says is to co operate on improving regulation Her recipe is for Canberra to retreat from the regulatory space and for the states to simplify and streamline conditions shifting their focus to outcomes Also on her wish list is the use of royalty holidays the removal of cash bidding for acreage the acceleration of reforms to establish a gas hub at Wallumbilla in Queensland and a review of the control of pipeline capacity Users Tanna added should re assess their historical view of gas contracts in terms of structure length and pricing revisit the option of exploring for their own gas and consider underwriting exploration to share risk The east coast market is in transition she says and we all face problems particularly if New South Wales does not contribute She adds we should not manage for imagined problems and we should not manage for the gain of a few David Green s focus in his Melbourne talk was on electricity but the key points he made applied across the aisle First he said Australia needs to stabilise its policy settings This means recognising the long term investment cycles and building practical policies that will endure over time Policy stability he went on requires a degree of bipartisanship and this takes real effort It also means properly hearing and addressing community concerns It does not take much for an issue to become a problem and for the political process to then magnify this into the need to do something We need to be patient about the process We need to see communities as co investors Second Green said a space needs to be created in the market for new entrants and new sources of competition We need to grasp the opportunities smarter markets can give us Third we need to overhaul the market to rethink its purpose and open its structures to greater competition and innovation Above all he said we need informed and effective debate that leads to effective action Tanna and Green each in their own way are arguing that stakeholders in the energy debate need to rise above Armageddon scenarios What they are saying gels with a point being pressed by John Pierce chairman of the Australian Energy Market Commission which has launched a review in to the east coast gas market While he is talking about gas the points holds good for power too Structural change in the eastern market requires a strategic plan focussing on the next 10 to 15 years Gillard Swan Wong and Combet played a hocus pocus game under the last federal government of trying to get the community to focus on 2040 and 2050 to avoid being held to account in the short term for policies designed to keep them in office They have left us an energy policy environment in disarray While today s task is by no means for the Abbott government alone it is in the hot leadership seat and it has to wrangle a set of state governments too much focused on the quick fixes towards a workable mid range plan Keith Orchison director of consultancy Coolibah Pty Ltd publisher of the This is Power blog and editor of OnPower newsletter was chief executive of two national energy associations from 1980 to 2003 he was made a member of the Order of Australia in 2004 for services to the energy industry Print this page More from Keith Orchison 30 Dec Unplugging the power discord 18 Dec Searching for a bright spark in the power debate 10 Dec Still no solution for power bill shock 25 Nov Abbott s a few sparks short of a global power agenda 11 Nov Passing the electricity price baton Related articles 13 Jan Indonesia ban no issue Palmer 13 Jan Singh behind key KKR deal 13 Jan Financial Index to buy Centric Wealth for 130m 12 Jan Toyota to produce 10 million cars 12 Jan Qld mulls massive farm project More from Business Spectator Technology Adapt or die Commercial The Future of Energy Family Business Alan Kohler s Family Business China China Spectator Please log in or register to post comments Comments on this article Comments Policy

    Original URL path: http://www.businessspectator.com.au/article/2013/10/8/industries/turning-heat-gas-debate (2014-01-12)
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  • Queensland’s review gives power to the people | Business Spectator
    Nonetheless the review is a valid activity because Energy Minister Mark McArdle is pursuing opinion across a broad canvas regional communities social services and the Bundaberg Regional Irrigators Group as well as the usual suspects in the shape of peak industry bodies large companies academics and ideologues The government has contributed papers highlighting the challenges it believes electricity supply faces McArdle who tabled the latest paper in state parliament in mid September has set December 6 as a deadline for submissions The government is hinting at a short term reform agenda including a possible move from regulated retail power pricing in the populous south east corner from 2015 implementation of the national energy customer framework proposed by the Gillard government a customer driven smart meter roll out and an easing of network reliability standards Longer term the government has used three scenarios to illustrate what might be pursued Unlike some it has been honest about these outlooks emphasising that they are not predictions The future for Queensland s electricity supply system is unknown it declares The only certainty is that the sector will not look or operate the way it is today The trio of long term scenarios are not relentlessly Panglossian either One envisages the system is in for a bumpy ride with slow demand growth and inefficient use of assets seeing price pressures increase It sees the market forced through a set of rapids with new generation needed but investors uncertain with no viable cost effective low emissions technology available to keep down prices In this world customers are confused and resistant to engaging in the market which they expect government to continue managing The power price debate remains highly contentious and continues to impose a financial burden on the state The sceptics among us would see all this as only too likely A second scenario moots a smooth ride in to a price driven customer led environment for a while But global negotiations have so far failed to produce an early international agreement on carbon abatement When an agreement comes it will hurt especially if Queensland has opted for large scale use of gas for generation Absent mature competitive large scale renewable technologies it asks is this when nuclear power becomes a real option The third scenario sees international and national carbon action along with high gas prices pushing renewable technologies including energy storage This is the two speed scenario for Queensland where the resources sector grows rapidly reacting to international demand some regional population centres expand substantially and industry demand sees a lot more investment in generation and networks The worm in this apple is that non boom areas end up dealing with price pressures while the industrial and commercial sectors find local costs are undermining their cost competitiveness All this drives along low emission technologies and new energy management practices Does it also end up driving technology like carbon capture and storage Unlike so much that has been trotted out over the past six years

    Original URL path: http://www.businessspectator.com.au/article/2013/9/27/industries/queenslands-review-gives-power-people (2014-01-12)
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  • NSW turns up the energy shriek scale | Business Spectator
    winter peak periods in the latter half of this decade adversely impacting state industry and the wider economy These are all quotes from submissions to a NSW Legislative Assembly committee inquiry currently under way Politically this issue has two prongs There are 1 1 million New South Wales households for whom both gas and electricity are important energy sources the dual fuel homes and they need continuing higher prices like a hole in the head Ask a state politician what he or she worries about most in the energy space and the answer is almost always the fact that NSW s 2 9 million households are highly irritated by the large role of energy in their cost of living pressures And there large scale manufacturers directly employing 15 000 people for whom gas supply is a key input and the health of these businesses impact on a spectrum of others who provide them with goods and services According to Manufacturing Skills Australia 30 per cent of the country s manufacturing employment is located in New South Wales and it is all under the pump of higher energy prices This is far from the end of the litany of energy issues confronting the state For Premier Barry O Farrell and Treasurer Mike Baird what they can glean from flogging off Macquarie Generation the country s largest electricity generator and the remaining bits of Delta Electricity plus whether they can get away politically with also selling the valuable transmission and distribution network businesses worth perhaps 30 billion are not minor questions For the green activists and at least some of the farming communities of the state whether further coal seam gas exploitation should be allowed is the issue of issues For some rural communities whether their landscapes should be littered with wind turbines or covered with many hectares of large solar panels is no less controversial Lurking in the background is the awkward question of residential rooftop solar arrays their subsidies their impacts on networks and how the money go round gets shared Ignoring this issue won t make it go away and with the incoming Abbott government pledged to double the rooftop PV fleet New South Wales is right in the firing line of the costs dilemma Which brings us round to the O Farrell government fairly quietly releasing its renewable energy action plan which is hanging its hat it appears on a Bloomberg prediction that 36 billion will be spent in Australia in the rest of the decade on renewable energy The government policy succinctly is we want to make sure we get our share Bloomberg s estimate is based on a national outlay of 18 billion on more wind farms assuming the RET stays as is and the balance on large and small scale solar PV and solar thermal investment The O Farrell government report reckons that NSW could increase generation from renewable sources based on projects being built or having planning approval to 13 000 gigawatt hours a year up from 7881 GWh in 2012 the lion s share of which is the output of the Snowy Hydro scheme 4776 GWh in 2012 In passing privatising the Snowy company is another piece of unfinished business left over from past Labor state and Liberal federal eras with the business estimated to be worth a cool 5 billion to be shared by federal NSW and Victorian government owners On the shriek scale of confected political outrage privatising the Snowy rates 11 out of 10 Finally and not a small matter New South Wales is at the heart of one of the biggest challenges facing most east coast governments this decade the deregulation of retail power pricing the roll out of new metering technology and the introduction of cost reflective tariffs Badly handled this process comes quite high up the shriek scale too ask the late Bracks Brumby government of Victoria With the next state election looming in late March 2015 the O Farrell government has quite a lot on its plate energy wise and quite a lot that could go pear shaped without deft handling Keith Orchison director of consultancy Coolibah Pty Ltd publisher of the This is Power blog and editor of OnPower newsletter was chief executive of two national energy associations from 1980 to 2003 he was made a member of the Order of Australia in 2004 for services to the energy industry Print this page More from Keith Orchison 30 Dec Unplugging the power discord 18 Dec Searching for a bright spark in the power debate 10 Dec Still no solution for power bill shock 25 Nov Abbott s a few sparks short of a global power agenda 11 Nov Passing the electricity price baton Related articles 13 Jan Indonesia ban no issue Palmer 10 Jan OM Holdings CEO resigns 10 Jan Korea China jostle for Aust resources 10 Jan Fed govt should support Alcoa ALP 10 Jan Solar and wind competitive with fossil fuels Gov t economist More from Business Spectator Technology Adapt or die Commercial The Future of Energy Family Business Alan Kohler s Family Business China China Spectator Please log in or register to post comments Comments on this article Comments Policy Rick Willoughby Mon 2013 09 16 17 47 Off grid rooftop solar is the easy option for residential properties and small businesses with access to a space for solar collection An outlay of 12 000 to 15 000 overcomes household energy costs forever If using gas there will be some added conversion cost to electric appliances efficient heating cooling and improved insulation This is the future where the energy is freely distributed and there are no metering and billing systems Karl lastName Mon 2013 09 16 20 09 That is a falsehood 12 15k gets you a system installed then you have to basically replace the panels every 25 years and batteries every 5 to 10 Plus for max efficiency then need to be cleaned regularly Plus there is no way you

    Original URL path: http://www.businessspectator.com.au/article/2013/9/16/resources-and-energy/nsw-turns-energy-shriek-scale (2014-01-12)
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  • Power lessons from Germany’s green wedge | Business Spectator
    lowered input costs for both direct use of gas and power production In Merkel s backyard the left of centre Der Spiegel began a major story on energy prices by writing Our aggressive and reckless expansion of wind and solar power has come with a hefty price tag for German consumers The local political world the magazine says is wedged between the green energy lobby masquerading as saviours of the world and the established utilities with their dire warnings of chaotic supply problems and job losses When the Green Party was part of the German federal government one of their stars environment minister Jurgen Tritten claimed switching the country to renewable energy wasn t going to cost consumers more than one scoop of ice cream Now his successor Merkel s environment minister Peter Altmaier laments that consumers are paying enough to eat everything on the ice cream menu Will Pearson head of global energy at Eurasia Group in London says Germany s dilemma is how to keep energy prices low enough to enable its businesses to remain competitive while also maintaining a balanced budget And Merkel s junior partner in Germany s present governing coalition the pro business Free Democratic Party is reported to think the present policies are a mistake In an edition with a gold plated power cord on its front cover Der Spiegel highlights that German electricity consumers will be forced to pay the equivalent of US26 billion A28 04 billion to buy US3 billion worth of power its wholesale price to cover the subsidies for solar wind and biogas production this year For many ordinary Germans it claims power has become a luxury purchase The magazine says Merkel and her ministers are doing their best to avoid discussing the issue but this hasn t silenced the growling around the household kitchen tables An average three person home in German now pays twice as much for power than in 2000 similar to the situation in Australia as a result of the combined impact here of network costs and various green subsidies including the carbon price Once the poll is out of the way the renewables related surcharge German householders pay is scheduled to go up 20 per cent I see at least three Australian take outs from this situation First the local mindset is such that Abbott would have been assailed by Rudd Milne and the green commentariat for uttering the religious quote Any substantial change must get round the zealots to win public support Second like Germany politicians here can run but they can t hide from the growing threat of energy costs for manufacturing and small business the country s two biggest employers And third agree or disagree with Abbott s proposed course the present set up in Australia is still a time bomb that needs defusing Keith Orchison director of consultancy Coolibah Pty Ltd and editor of Powering Australia yearbook was chief executive of two national energy associations from 1980 to 2003 He was made a Member of the Order of Australia for services to the energy industry in 2004 Print this page More from Keith Orchison 30 Dec Unplugging the power discord 18 Dec Searching for a bright spark in the power debate 10 Dec Still no solution for power bill shock 25 Nov Abbott s a few sparks short of a global power agenda 11 Nov Passing the electricity price baton Related articles 13 Jan Indonesia ban no issue Palmer 13 Jan Singh behind key KKR deal 13 Jan Financial Index to buy Centric Wealth for 130m 12 Jan Toyota to produce 10 million cars 12 Jan Qld mulls massive farm project More from Business Spectator Technology Adapt or die Commercial The Future of Energy Family Business Alan Kohler s Family Business China China Spectator Please log in or register to post comments Comments on this article Comments Policy Sam Richards Thu 2013 09 12 14 51 Good call the Green debate has got out of hand It has indeed become religious Climate Spectator commentators Tristan Edis and Matthew Wright seem to think that if you repeat optimistic exaggerated unrealistic and anti market Green policies often enough people will think they are worthwhile and more importantly cost free The worst is Labor comments on not supporting Tony Abbotts mandate on the carbon tax The justification The Labor Party believes that climate change is real the Labor Party believes that we need to do something about it The KEY WORD is SOMETHING Not a solution not doing something that actually gets results No Labor want to simply do SOMETHING At a cost of tens of billions of dollars a year SOMETHING But not a Carbon tax on Petrol because people would REALLY not like that Great debate we are having Matthew Wright Thu 2013 09 12 15 11 Another article by Keith Orchison that forgets about the facts to pursue a story for his former or is that current paymasters in the fossil fuel supply industry Keith we remember when you told us that electricity grids couldn t have more than 5 variable renewables such as wind and solar the country now has 15 while supporting its Danish neighbour that has over 30 solar and wind and Italy to the south which has 10 7 solar contribution a nation that is rapidly turning from a net electricity importer from nuclear France to a net electricity exporter The facts Actually German consumers are paying hardly anything more because Solar PV in Germany is causing the merit order effect which is wholesale price suppression during the higher daytime prices on the German energy market The net effect of paying to put PV on roofs and the effect of that PV on the wholesale market is that German consumers and especially their biggest energy users are paying far less for their electricity than previously Please check the facts Keith Orchison http k lenz name LB p 9740 German wholesale electricity prices are down from 5 115

    Original URL path: http://www.businessspectator.com.au/article/2013/9/12/industries/power-lessons-germanys-green-wedge (2014-01-12)
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