U.S. and China on brink of trade war over solar power industry

www.nytimes.com
9 Nov 2011

HONG KONG — The United States and China are gearing up for a trade war that could catch American users of solar power in the crossfire. The Commerce Department in Washington on Wednesday opened an investigation sought by American manufacturers who accuse the Chinese of "dumping" solar panels into the United States at prices, aided by government subsidies, lower than the cost of making and distributing them.

Anticipating that move, the Chinese solar industry has been unusually vitriolic this week. A government-controlled trade group accused the White House of turning the commercial complaint into "a political farce, which is very likely a publicity show initiated by the Obama administration for the coming election."

Meanwhile, a new American trade group was formed this week, representing buyers and installers of solar power systems. It argues that any new Commerce Department restrictions on Chinese solar panels would slow the adoption of clean energy technology in the United States and could cost thousands of American jobs. Some environmentalists also oppose policies that might slow the adoption of solar power.

Solar power is a politically fraught issue in Washington, in part because of the bankruptcy this summer of a solar panel maker, Solyndra, after it had received more than $500 million in federal loan guarantees. The use of solar power in the United States is growing fast, but Chinese solar panel manufacturers have been growing even faster, raising their American market share to more than half now, from almost none five years ago.

By bringing together complex issues like manufacturing policy, job creation and climate change, the solar panel dispute is emerging as the most politically charged trade case in many years, potentially rivalling Detroit's legal case against Japanese automakers under a related trade statute in 1980. The solar panel case "is one of those once-in-a-generation cases," said Alan Wolff, a deputy United States trade representative in the Carter administration who is now the chairman of the international trade practice in the Washington office of the Dewey & LeBoeuf law firm.

Although solar power now contributes only about one-tenth of 1% of American electricity, the amount of new solar wattage installed in the United States has been growing more than 70% a year since 2008, according to GTM Research, a renewable energy market analysis firm in Boston. Seven American manufacturers filed a legal petition on Oct. 19 seeking the Commerce Department investigation and asking that tariffs of more than 100% be imposed on solar panels from China. The filing accused the Chinese industry of using billions of dollars worth of government subsidies to help gain sales in the American market and dumping panels at very low prices.

Under American trade laws, Wednesday was the deadline for the department to either begin a formal inquiry — unless it judged the case to be groundless — or find that few companies manufacturing panels in the United States actually supported it. Whatever action the American government might take, it could prove too late to save the American solar panel industry. China, whose government has been a big promoter of green-energy companies, already accounts for three-fifths of the world's solar panel production, giving it enormous economies of scale.

And it exports 95% of its production, much of it to the United States, rather than using it within China. That has helped push wholesale solar panel prices down sharply — from $3.30 a watt of capacity in 2008, to $1.80 by last January, to $1 to $1.20 today. A typical solar panel might have a capacity of 230 watts.

Although plunging prices could speed up the adoption of solar power, the American industry contends the Chinese are simply not playing fair. Besides Solyndra, two other American solar companies that together represented one-sixth of American manufacturing capacity in the sector went bankrupt in August, while four other American solar companies have laid off workers and cut output since spring of last year. President Barack Obama said in an interview on Nov. 2 with a television reporter from Oregon, the hub of the American solar panel manufacturing industry, that there were "questionable competitive practices coming out of China" in clean energy.

That prompted the "farce" statement this week by the government-controlled Chinese Renewable Energy Industries Association, condemning Mr. Obama's remark and contending that it indicated a bias in favour of the American manufacturers. "They attempt to shift the responsibility of US clean energy development failure, especially President Obama's personal responsibility, to Chinese solar cell companies," the statement also said.

The Commerce Department uses a quasi-judicial process administered mainly by civil servants to adjudicate anti-dumping and anti-subsidy cases. Congress designed the process in the 1970s to shield the decision makers from political influence, because of a perception that a succession of Republican and Democratic administrations had ignored violations of international trade rules during the Cold War by Japan and other countries as long as they remained strong geopolitical allies against the Soviet Union.

Republicans and Democrats alike from past and current administrations have defended the current process as insulated from politics. "The methodology of this is not political," said Frank Lavin, a longtime Republican who has held a series of political appointments in Republican administrations, including overseeing the anti-dumping and anti-subsidy investigations office when he was the undersecretary of commerce for international trade during President George W. Bush's second term.

But like many Republicans, Mr. Lavin was critical of the Obama administration for having provided a half-billion dollars in federal credit guarantees to the now-bankrupt Solyndra, a California company with an alternative solar power technology. The funding is the subject of a continuing investigation by House Republicans. "It's very hard to make a case that $500 million was well spent," said Mr. Lavin, who is now a public affairs consultant in Hong Kong and not advising either side in the solar panel dispute.

The Commerce Department is required by law to issue a preliminary decision on the anti-dumping claim possibly in mid-January but no later than late March, and on the anti-subsidy claim no later than mid-May. Many trade experts expect that the decision would include steep tariffs on imports, and that those tariffs would be retroactive to 90 days before each decision and possibly retroactive to Wednesday's opening of the department's investigation.

Chinese industries have lost almost all of the anti-dumping and anti-subsidy cases against them for decades because the United States still categorises China as a non market economy, which means that special rules are used that tend to favour the American industry. Most of the big Chinese solar panel manufacturers have subsidiaries in the United States that are the legal importers, so they — not the American installers of solar panels — would incur the initial costs of any tariffs. But those costs could be expected to be passed along to customers; otherwise, Chinese companies might find themselves vulnerable to higher anti-dumping penalties in the future.

Taking the lead in the dumping petition was SolarWorld Industries America, a unit of the German manufacturer SolarWorld. Six other American solar panel manufacturers signed on to the case with SolarWorld, but all have exercised the option to keep their identities secret. That anonymity could help relieve them and their executives from fears of retaliation by the Chinese government, which could come in the form of denying them access to the Chinese market or denying them visas.

But the secrecy also makes it hard for the Chinese industry's lawyers to figure out if the companies filing the case have themselves received American government subsidies. SolarWorld Industries America has acknowledged receiving a few million dollars in subsidies for research and none for exports. It is government subsidies that promote exports that are the ones likely to violate international trade rules.

The Chinese Renewable Energy Industries Association called in its statement this week for the other six American companies to be identified. But Francisco Sanchez, the American undersecretary of commerce for international trade, said during a visit to Hong Kong last month that he believed his agency could maintain the secrecy of unidentified co-filers in trade cases.

Global wind power investment to total $820 billion from 2011 to 2017, forecasts Pike Research

www.marketwatch.com
9 Nov 2011

BOULDER, Colo., Nov 09, 2011 (BUSINESS WIRE) -- Wind power now accounts for the majority of the world's non-hydropower renewable electricity capacity. Now that wind power has reached approximately one-fifth of total electricity generation in some countries, most in the energy industry appreciate it as a mainstream technology that is key to not only reducing carbon emissions, but also meeting rapidly increasing electricity demand around the world.

While the global economic recession significantly slowed the pace of new wind power installations in 2010, turbine deployment activity remains strong and overall capacity will continue to rise at a healthy pace. According to a recent report from Pike Research, by 2017 wind power installations will represent a $153 billion global industry, up from $77 billion in 2011. Over that period, the cleantech market intelligence firm forecasts, cumulative investment in new wind power capacity will total $820 billion.

Over that same period, total wind generation capacity, including both onshore and offshore projects, will increase from 235.8 gigawatts (GW) in 2011 to 562.9 GW in 2017. "Although growth rates of new wind installations will fall short of the industry's boom period, cumulative wind power capacity will grow steadily over the next six years," says senior analyst Peter Asmus. "Despite the challenging market conditions for the wind power industry, this is a dynamic time for innovation in the market, as vendors are pushing turbines to sizes never before thought practical or economical."

At the highest level, three major regional markets will continue to drive the global wind industry: Asia Pacific, dominated by China and, to a lesser extent, India; Europe, led by Germany and Spain; and North America, led by the United States. Illustrating the dynamic growth of new market entrants, the top 10 wind manufacturers supplied 79% of the wind turbines installed worldwide in 2010 -- a significant drop from 88% only two years before. The majority of these new entrants are based in China. At the same time, numerous high-level mergers and acquisitions have resulted in more dynamic, vertically integrated wind turbine manufacturing companies. Increasingly, manufacturers are acquiring wind farm development companies as a strategy for ensuring markets for their turbines.

Pike Research's report, "Global Wind Energy Outlook", provides an in-depth analysis of global opportunities in the onshore and offshore wind power markets, as well as an examination of key challenges facing the industry. It examines technology innovations that will influence the future direction of the market and also features detailed profiles of key industry players, including a competitive regional analysis of the three major wind power markets today across their respective technology, policy, and capital environments. Market forecasts extend through 2017 and include projections for installed capacity, installation costs, and offshore production revenue, all segmented by onshore, offshore, region, and country. An Executive Summary of the report is available for free download on the firm's website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors.

First Solar Commences Construction on Australia's First Utility-Scale Solar Farm

investor.firstsolar.com
November 6, 2011

Geraldton, Western Australia, Nov. 7, 2011 - FirstSolar Inc. (Nasdaq: FSLR) today announced that construction has commenced on the 10-megawatt AC Greenough River solar farm, located 50km south of Geraldton. Once completed, the solar farm will be the first utility-scale photovoltaic (PV) project in Australia and will bring significant investment to the local community through a partnership with local civil contractor WBHO Civil - the company awarded the Phase 1 construction contract for the project.

The construction program is scheduled to take place over a period of approximately nine months. Following civil work, which commenced on Friday (Nov. 4), the project will progress to on-site construction of structural supports and the completion of above ground electrical works. The installation of FirstSolar PV modules is anticipated to begin in March 2012, with the solar farm expected to be fully operational by mid-2012.

Western Australian state-owned power utility Verve Energy and GE Energy Financial Services each own 50% of the Greenough River solar farm, with the WA Government providing A$20 million including A$10 million from the WA Royalties for Regions program.

FirstSolar will supply the project with over 150,000 of its advanced thin film PV modules and provide engineering, procurement and construction services. Through the partnership with local contractor WBHO Civil, and in the sourcing of local products, the project is expected to generate millions of dollars for the City of Greater Geraldton's economy. Up to 150 people will be onsite at any one time throughout the construction phase, with jobs lasting for up to nine months.

"FirstSolar aims to maximise local hiring and enable the project to make a meaningful and lasting contribution to regional communities," said Jack Curtis, Vice President, Business Development & Sales for FirstSolar. "We are also building our in-country supply chain network by procuring as many materials as possible from local suppliers at all stages of the construction process.

"Increased localisation is critical to the development of a sustainable large-scale solar industry in Australia. Developing a local capability to install utility-scale solar projects, together with stable government policy, will greatly improve the industry's long-term outlook," Curtis added.

WBHO Civil will play a pivotal role in providing site preparation services, underground electrical services and civil works. The company's local expertise and extensive network across WA will ensure that the Greenough River solar farm is built to the highest possible standards.

"This is an exciting project for the Sinosteel-Midwest and we are very proud to be working with FirstSolar, who has a reputation for the delivery of world class renewable energy projects internationally," said Michael Librizzi, General Manager - Sinosteel-Midwest for WBHO Civil. "The project mitigates harm to the environment and is a sustainable energy resource, and this fits perfectly with our internal mantra of being an environmentally-friendly corporate citizen."

Gas prices to double in 20 years as demand explodes, Santos predicts

Canberra Times
11 Jan 2011, Page: 13

The only way to meet a tripling in natural gas demand in eastern Australia is by allowing unconventional gas projects, such as coal seam gas, oil and gas producer Santos says. Santos's eastern Australia vice-president James Baulderstone told a conference that he expected gas prices to more than double within two decades, driven by demand and linking it to oil prices. Soaring global demand for liquefied natural gas is expected to contribute to Australia's wealth and make it one of the world's biggest exporters of the commodity.

However, the use of fracking to access coal seam gas or shale gas is strongly opposed by many Australians and Americans, including farmers, who say it contaminates prime agricultural land._ Santos insists that is false and gas is a safe, low-carbon alternative to coal for providing energy, with eastern Australia potentially having enough gas to supply it for a century.

"The five LNG trains already sanctioned, with more planned, represent a quantum change in eastern Australian natural gas demand", Mr Baulderstone told the Opportunities and Challenges for Australian Gas conference yesterday. "Provided natural gas development activity is allowed to proceed at the right pace, and the market is willing to pay the increased cost of extraction, there is sufficient gas in eastern Australia to meet this demand".

But he added that it was not viable to develop much of the gas reserves to meet the new demand at current Australian gas prices of about $4 a GJ. Australian gas prices were some of the cheapest in the developed world, Mr Baulderstone said. He predicted prices would move to $6 to $9 a GJ. Santos is heavily invested in coal seam gas through the $US16 billion ($A15 billion) Gladstone Liquefied Natural Gas project it is leading and is also developing shale gas projects in the Cooper Basin in central Australia. It is also close to finalising a $924 million bid for NSW-based Eastern Star Gas, which controls NSW's largest coal seam gas resource. Santos shares were down 24¢ at $12.96 yesterday.

Danes have power pylons down to a fine art

Sydney Morning Herald
28 Oct 2011, Page: 11

Denmark: Norbert Baars may 1101 know much about art, but he knows what he likes. No one is going to mistake the big 27-metre pylon, part of a power line that crosses his dairy farm in the hilly Danish countryside, for a Michelangelo. "It's one big clump of metal", said Mr Baars, who moved to Denmark several years ago because farmland is cheaper than in his native Netherlands. But the views of farmers like Mr Baars are of no slight weight these days. With the spread of renewable energy sources, such as wind and water power, the high-tension power lines that carry electricity to Danish cities and industries must be expanded and drawn anew. As in other countries, no one wants those pylons in their backyards.

So to break down that NIMBY, the Danes hit on the idea about a decade ago of having industrial architects, if not artists, design new, pleasingly sculpted pylons, the huge steel towers that sup-port the power lines. If the pylons looked more like, say, giant sculptures, the reasoning went, people might like them or at least be less resistant to having them nearby. The first such line went up several years ago, running roughly 16 km on 80 pylons, and crosses this farming village of about 900 people, just south of Mr Baars's farm. Erik Bystrup, an industrial architect from Copenhagen, won a competition organised by Energinet.dk, the state owned utility that operates Denmark's energy grid, to find the most attractive pylon.

Unlike traditional pylons, with their lattice-work of gray galvanised steel, the ones that went up over Valsgard consisted of a single post, capped by a cluster of stainless-steel rods to hold wires that gleamed in bright sunshine almost to invisibility, obviously, there are limits to the artistry of pylons. They have to be tall and carry wires a certain distance apart, and they cannot be made of exotic materials that would bust the budget. Mr Baars tries to squeeze something positive out of the power line, noting its usefulness in navigating the area's narrow country roads at night. "Sometimes I think, 'Oh, just follow the pylons'", he said.

Shameful hypocrisy

Age
28 Oct 2011, Page: 16

THE mine at Anglesea is already spewing carcinogenic dust over surrounding houses and farms and is within 1.5 km of the primary school. It is a shameful irony that Victoria's new wind farm restrictions prevent even community initiated wind farms being built, yet we have virtually no protection from the expansion of coal and gas mining. This is a classic example of the 1% who own the fossil fuel industry riding roughshod over the 99% who want a healthy environment and safe future for our kids.

Jane Morton, Northcote


Back to a dirty future
THE Baillieu government's Anglesea mine lease renewal shows it is stuck in 1961, when premier Henry Bolte used state debt to build state infrastructure and effectively won overseas investment for Victoria. But Baillieu's government knows that the science tells us to stop burning coal just ask the CSIRO. The shame is that the government doesn't have the courage to use state debt to build infrastructure. With wind farms and solar thermal baseload power, Victoria could have thousands of jobs and a clean energy future. Bolte didn't know how damaging coal is, Baillieu does. Whose future is Baillieu working for?

Ian Mack, North Fitzroy

Solar panels losing shine

Adelaide Advertiser
28 Oct 2011, Page: 3

THE number of approvals for solar panel units has plummeted since the tariff incentive of 44¢ a kW closed last month, leading to industry fears of hundreds of job losses. ETSA Utilities spokesman Paul Roberts yesterday said there had been 342 approvals since the reduced price began this month, compared with 24,600 in September. This year, monthly average approvals were about 7000. Under the now closed scheme, ETSA pays householders with solar panels 44¢ per kW/h to feed power into the state's electricity grid. This has now reduced to 16¢ per kW/h.

Love Energy managing director Richard Mintz said the substantial drop-off in installations did not surprise him. "It's very, very quiet at the moment, but we were expecting that", he said. "Anyone thinking about solar would have made the decision in September". According to the Clean Energy Council, there are an estimated 1500 people working in the SA solar industry. Mr Mintz said companies were still working to install solar panels ordered under the previous price scheme, but he expected new orders to remain quiet until the new year.

He said this would likely lead to job cuts of up to 50% among companies that predominantly relied on the South Australian market. "You're going to see a lot of job cuts in the industry over the next three months", he said. Cleaner Energy SA chief executive Lee Lake said the company had noticed a 75 to 80% reduction in business in October and had cut jobs. "We had to do a little restructuring and cut a few jobs", Mr Lake said. "Our plan at this stage is to keep our advertising going, keep our name out there and make sure our customers have a positive experience".

But solar power companies yesterday expressed overall confidence in their long-term future because of residential electricity price rises and the implications of a carbon tax. "The long-term stability of our business is good", Combined Solar director Dion Miller said. "There'll always be a downturn straight after the rebate reduction but it's a matter of riding out the wave". Department of Transport, Energy and Infrastructure energy division executive director Vince Duffy said the State Government had anticipated a drop off in applications, but was confident of the industry's future.

Looking to a cleaner future

Courier Mail
27 Oct 2011, Page: 27

AUSTRALIA'S new era in sustainability will hit the spotlight when clean technology leaders gather on the Sunshine Coast tomorrow for the 2011 Clean Futures Conference. The industry, which employs 25,000 people nationally and grew 32% in 2010, includes businesses involved in renewable energy, water, waste and recycling, construction design and materials and energy efficiency. Sunshine Coast Council, which aims to attract more green firms to the region, is supporting the conference, being held at University of the Sunshine Coast's Innovation Centre.

Speakers include CEO of Sustainable Business Australia, Andrew Petersen, and chairman of Aquaflow Bionomic Corporation Ltd and director of SolarCity New Zealand Barry Leay. Revenues now see the cleantech sector at half the size of the construction industry and growing. Today's conference is backed by council, Regional Development Australia, Department of Employment and Energex.

$50,000 wind mast sparks Woodend wrangle - Local activist gobsmacked

Age
26 Oct 2011, Page: 5

THE state government has paid $50,000 for a 60-metre high wind mast to measure the strength of wind for possible wind turbines in an area in which a former planning minister had banned for wind farms. The government said it wanted the money back, but the Woodend Integrated Sustainable Energy group, which plans to build the wind mast south of Woodend next week, said it had no intention of handing it back.

While the original funding agreement was made under the Brumby government, final contract negotiations for the wind mast were approved by the present government on August 19 10 days before Planning Minister Matthew Guy announced Australia's most restrictive wind farm regulations, which make the Macedon Ranges a "no-go zone" for wind farms. Woodend residents had planned to power the town with renewable energy with three wind turbines to be built in a pine forest six km south of the town.

Now the town will have a government-funded wind mast, which will show how much power the wind turbines could generate. Barry Mann, of the Woodend Integrated Sustainable Energy Group, said the wind mast would relay its readings to an advertising display screen in the local newsagents to make residents aware of the amount of energy a wind farm in the area could produce.

"The display will be updated every hour, with information coming from the wind mast, how much energy the wind park would have produced, average wind speeds, the value of that energy", he said. He said he was "gobsmacked" by the new wind farm planning rules that prevented the Woodend proposal. He said the group received the money for the wind mast three days before the wind farm planning changes, and would not be handing the money back. "We've spent it", Mr Mann said. "I've bought the mast, I've paid the installer, I've paid for the instrumentation".

He said spending $50,000 on the wind mast in an area now banned for wind turbines was not a waste of money. "This government is not going to be in forever", he said. "We are determined to proceed to show people the potential benefits of a project like this, and we would hope in the future common sense prevails and these restrictions are lifted". Newsagent Darren Cahill said he did not have an opinion on the wind farm proposal but was happy to assist in providing information to the public. "It is just information", he said. "See what comes of it. Can't do any harm, people can make their own minds up".

A spokeswoman for the Minister for Environment and Climate Change, Ryan Smith, said the grant was provided by the previous government in 2010. "The previous government created a legally binding contract between the proponent and Sustainability Victoria", she said. She said the minister had now asked his department to see if the money could be retrieved. Opposition planning spokesman Brain Tee said government's wind farm policy was a mess. "This government stuff-up rubs salt into the wound of this community", he said. It exposed the blinkered opposition to wind power, which would stop local communities "who just want to help the environment".

Glut forces Panasonic to axe solar panel plan

Australian
25 Oct 2011, Page: 26

Panasonic Corporation is dropping a plan to convert a plasma TV factory in westernJapan into one making solar panels, as fierce cost competition, a global solar cell supply glut and the strong yen combine to make the venture unprofitable. Earlier this year, Panasonic said it was planning to move the equipment for manufacturing plasma screens at its Amagasaki No 1 plant in Hyogo Prefecture to China. At the time, the company said it wanted instead to produce solar panels at the plant sometime in the next financial year. Panasonic's change of plan exemplifies the struggle Japan's solar panel makers are facing, as booming Chinese solar panel makers create a global inventory glut, while the strong yen makes Japanese exports too expensive.

Sharp Corporation, another major Japanese solar panel maker, has been trying to localise its overseas solar power business. The company has recently built a solar panel manufacturing plant in Sicily in a joint venture with Italian utility End l and STMicroelectronics. Scrapping the plan to produce solar panels at the Amagasaki No 1 plant would be positive for Panasonic, said Mizuho Investors Securities analyst Nobuo Kurahashi. "But this is positive as a defensive move, and the big question remains as to how Panasonic will make its solar business a real growth driver", he said.

When Panasonic acquired a majority stake in Sanyo Electric in 2009, the latter's strength in energy efficient technology particularly solar panels and rechargeable batteries was cited as one of the reasons for the deal. Since then, the global market for solar panels has changed dramatically. Chinese solar cell makers, such as JA Solar Holdings and Suntech Power, are now among the world's biggest producers, thanks in part to Beijing's support for renewable-energy businesses.

"Continued solar module overproduction will lead to sustained price pressure across global photovoltaic markets", said solar market research firm Solarbuzz in a report in late September. "While some manufacturers have started to cut back production and shipment plans, tier one Chinese companies have maintained their full-year shipment guidance", likely causing oversupply, Solarbuzz said in the report. For now, Panasonic is expected to continue producing plasma display panels at the Amagasaki No 1 plant.

To turn around its loss-making TV business, Panasonic is considering selling a factory in Japan that makes liquid crystal display panels for televisions, and scaling down plasma TV panel output at another Japanese plant. Panasonic is the world's biggest maker of plasma TVs, but the vast majority sold today are liquid crystal display models, which Panasonic also makes. In the three months from April to June, LCD televisions took up 80.1% of all units shipped world-wide, while plasma TVs accounted for only 7.6%, according to DisplaySearch.

Reform to unlock power

www.barossaherald.com.au
25 Oct 2011

Councils will be given greater responsibility and there will be a dramatic reduction in public consultation over newly proposed wind farms within the state. These are just two of the changes to be made under the state government's new wind power reforms. According to the state government, the reforms are designed to facilitate further growth in the wind industry in SA.

Minister for Urban Development John Rau said, "The industry has been plagued by uncertainty following a court decision to uphold an objection on 'visual amenity' grounds, and the Victorian Government's crack down on wind power investment". He said an estimated $1.8billion in wind farm investment is currently on hold, pending the reform of the state's planning framework for wind power generation.

The reforms would reinstate local councils as the key authority for assessing planning applications of wind farms. Also, the reforms would set new restrictions for distances between wind farm developments and dwellings, while providing new levels of assurance for investors. This news is expected to come under attack by those currently working towards stopping the proposed wind farm development earmarked for Sedan ranges. The group, known as Eastern Mount Lofty Ranges Landscape Guardians (EMLRG), has been working for the past four months to stop the development instigated by Hydro Pacific.

The new state government wind power reforms involve:

• Amendment of Council Development Plans to provide greater consistency for assessment of wind farm development applications;
• Requiring developers to manage the visual impact of their developments, including requiring that turbines be located at least one km from dwelling (unless both parties agree to a lesser distance).
• Removing the capacity for appeal by third parties against proposals that use this approach and which are located in sparsely zones;
• Similarly, proposals in sparsely populated zones and where turbines are located more than two km from the periphery of country towns will not be able to be appealed by third parties;

The state government said, to support councils in their expanded role $300,000 will be provided through RenewablesSA to councils that need additional help. The state government is undertaking mandatory consultation regarding the changes. The public can make a written submission regarding the Ministerial Development Plan Amendment to the Department of Planning and Local Government via email at dpac@gov.au.

California adopts emissions cap plan

Adelaide Advertiser
22 Oct 2011, Page: 85

CALIFORNIA formally adopted America's most comprehensive "cap-and-trade" system yesterday, an experiment by the world's eighth-largest economy that is designed to provide financial incentives for polluters to reduce greenhouse gas emissions. State officials hoped other states and Washington DC, would follow, calling the plan a "capstone" among the tools California can use to reduce pollution linked to climate change and cut dependence on foreign oil.

"For half a century, every American president has been calling for America to move away from our dependence on foreign oil and become energy independent", chairman of the California Air Resources Board, Mary Nichols said. "The reason we have not succeeded in addressing our addiction to petroleum is because we did not have the right set of policy tools. Now we do. Cap-and-trade provides a reward for doing the right thing".

The board voted unanimously to approve the final draft of its plan, a key part of the state's landmark 2006 global warming law, AB 32, which seeks to reduce the emissions to 1990 levels by 2020. Some businesses regulated under the program argue it will raise the price of electricity for consumers and hurt job creation by raising the cost of doing business in the state. Program supporters expect cap-and-trade to spur economic recovery and innovation, by pushing business to invest in clean technologies.

While implementation of some parts of the program will begin next year, compliance for power plants and other of the worst polluting facilities starts in 2013, with others joining in 2015. The plan will cover 85% of California's emissions. Former Governor Arnold Schwarzenegger, who frequently promoted the law, called the vote a "major milestone" in the fight against climate change.

In general, the program will require pollution producers, such as refineries and cement manufacturers, to buy permits, called allowances, from the state. Each permit allows for a specified amount of greenhouse gases each year, with the amount declining over time. Companies that cut emissions and have extra allowances can sell the permits. Greenhouse gas emitters could purchase the allowances if they failed to cut emissions.

Polluters reducing emissions might turn a profit if the market price for extra allowances rose above the initial cost of the permit.The cap-and-trade plan has seen a number of changes and overcome significant hurdles since it was first adopted with fanfare in Sacramento last year. Work was briefly halted by a judge after environmental justice groups sued, arguing the market based approach of cap-and-trade would allow polluters to buy the right to pollute more by purchasing more allowances possibly affecting mostly low-income neighbourhoods located near governed facilities.

The California Supreme Court in September allowed work to continue on the regulations, saying the air quality of neighbourhoods near power plants and other regulated facilities would be monitored to see if any more pollution results from cap-and-trade.

National market inflates prices, says city

Sydney Morning Herald
Monday 24/10/2011 Page: 4

THE structure of the national electricity market results in unnecessarily high power prices by effectively blocking the development of smaller generators and is resulting in over-investment in electricity assets.

"It costs more to participate in the market than to generate", the chief development officer, energy and climate change with the City of Sydney council, Allan Jones, said. "We need a trading system outside the national market. A trading system supplying Sydney and Wollongong, for example, should be exposed to the full cost of the transmission grid".

Decentralised energy such as trigeneration systems, which use the waste heat from generating electricity to heat water and in cooling systems, are sidelined from use by the centralised nature of the national electricity market, he said. The Sydney council is pursuing plans for a trigeneration system, which would involve a network of gas-fired power stations around the edge of the central business district. This would boost the security of power supply to the area and potentially provide electricity at a cheaper price, with lower carbon emissions.

The proposal involves installing up to 360 MWs of generation capacity, which would be split across four units, from 20 MWs in Green Square to 120 MWs in parts of the CBD Energy. Using natural gas, the system would reduce emissions associated with office buildings and shopping centres by as much as 60% while providing for a return on investment of as much as 20%.

"This would enable the thermal energy networks connecting buildings together to be implemented, distributing zero carbon waste heat from local low-carbon electricity generation", the council said in its submission to the Tamberlin electricity inquiry, which is to deliver its report to the NSW government by the end of the month.

Two degree climate target slipping away: paper

Age
24 Oct 2011, Page: 3

GREENHOUSE gas emissions will need to peak before 2020 to give the world the best shot at meeting the internationally agreed target to limit average global temperature increases to 2°, according to scientists. In a paper, to be published in the scientific journal Nature Climate Change today, an international team of researchers, including some from the University of Melbourne, find the two-degree goal is still achievable but is slipping out of reach.

Nations agreed at last year's global climate change negotiations at Cancun that "deep cuts in global greenhouse gas emissions are required", with a view to holding the increase in global average temperatures to below two degree above pre-industrial levels. Two° is regarded by climate scientists as the maximum average global temperature increase possible to give the world a good chance of avoiding the worst effects of climate change.

The research team behind today's paper says that if measures are not put in place to ensure the early peak in emissions, followed by a large decline in the following decades, the two-degree target will not be achieved. "Without a finn commitment to put in place the mechanisms to enable an early global emissions peak followed by steep reductions thereafter, there are significant risks that the twodegree target, endorsed by so many nations, is already slipping out of reach", the paper says.

One of the report's researchers, Malte Meinshausen, from the School of Earth Sciences at University of Melbourne, told The Age the world couldn't put all its eggs in one basket and a suite of measures to reduce emissions would be needed. He nominated energy efficiency measures, renewable energy and, at a later date, bioenergy with carbon capture and storage producing negative emissions as elements in the mix. The research team ran models on almost 200 existing emission scenarios for the paper, finding the scenarios with the "likely" greater than 66% chance of staying below two° seeing global emissions peak between 2010 and 2020.

Opposition plan adds to uncertainty: Origin

Sydney Morning Herald
21 Oct 2011, Page: 5

AUSTRALIA must prepare for five more years of uncertainty over the foreshadowed carbon tax as a result of the federal opposition's claim that it will repeal it if elected. Grant King, the managing director of the largest privately owned power company, Origin Energy, called for more rigour in the debate about renewable energy, saying that no form of energy "is truly benign".

"There's been uncertainty for probably 10 years and right now you'd say there will probably be another five years of uncertainty", Mr King said, in light of the opposition's stated plans to repeal the tax. "There is quite a period of uncertainty ahead of us, no matter what", he said. "It will result in different [energy] choices than might otherwise have been made. "What will be built is the cheapest way that might meet that requirement, and that might not cause the right long-term mix of generation in the system to be built,.. We will generally expose the least amount of capital we can to that decision. "That might mean there's much more open cycle plant in the system-that's gas peaking plant-than base load plant, and that is less efficient, so you therefore get more carbon emissions".

Most people wanted steps taken to reduce carbon emissions, Mr King said, but there was concern about the rate of change. Furthermore, there was a "level of misinformation and misrepresentation on [coal seam gas] issues which I think are ideologically motivated around the notion of 'good' versus 'bad' fuels", he said, with no form of energy "truly benign".

Solar cells, for example, needed chemicals such as hydrofluoric and phosphoric acid and sodium hydroxide, all of which were highly toxic, he said. wind turbines were visually offensive to some, while others claimed they cause low frequency audible noise. Similarly, geothermal energy produced "up to 200 times more water" than coal seam gas wells and required hydraulic fracturing, similar to that seen with some coal seam gas wells, with the potential to affect the Great Artesian Basin.

"The point of these examples is not to say renewables are 'bad', rather that all forms of energy bring environmental issues", Mr King said. A $23 a tonne carbon price would likely result in "something near a 50% increase in current wholesale electricity prices, and natural gas wholesale costs may double over the next three to five years". Even so, given the rise in household incomes, "we think it unlikely that the cost of household energy will become significantly more burdensome on consumers", he said.

Carbon tax praised by investors

Age
20 Oct 2011, Page: 9

THE world's four major green investment groups representing $20 trillion in funds have hailed Australia's carbon tax as a boon for investors, strongly backing the government's claim that the scheme will deliver economic benefits. The report, commissioned by groups representing 285 pension funds and other institutional investors around the globe, found that Labor's carbon price and financial assistance for green technology "should provide investors with real confidence" in investing in renewable energy in Australia.

It backs recent accusations by some in the energy industry that Opposition Leader Tony Abbott's vows to repeal the carbon tax and the uncertainty this was creating could damage investment. Mr Abbott has faced questions about whether his decision to axe the scheme including the permits electricity generators say they need for "hedging" will expose a future Coalition government to compensation claims and trigger a jump in power prices. Yesterday he said: "We are very confident that we can remove the carbon tax without becoming liable for compensation".

He said it was possible to avoid a compensation liability by understanding the design of the Gillard government's scheme and giving business "fair warning" not to buy forward permits. Permits are current for 12 months, they expire at the end of the financial year and are not tradeable or transferable until 2015. Mr Abbott's comments yesterday suggest the Coalition would not move to shut down the carbon scheme entirely until the end of the relevant financial year, when permits have expired, thereby limiting compensation liability.

Coalition climate spokesman Greg Hunt said the opposition would keep its pledge to scrap the carbon tax and that gave Australian business certainty, "unlike Labor's false promise of no carbon tax at the last election. Business has that certainty and can make decisions based on that commitment".

The new report by British investment expert Rory Sullivan praised Australia's clear carbon reduction targets, its transparent climate policy and the fact that the carbon trading scheme would be clearly linked to international markets. But it noted that one of the major risks was "political risk, in particular that the opposition Liberal Party may unwind elements of the proposals if elected".

Nathan Fabian, chief executive of the Investor Group on Climate Change, one of the four groups that commissioned the report, said: "International investors believe Australia's policy framework is one of the best in the world for investment certainty. Experience shows that when good policies are rolled back, confidence of investors is undermined for several years".

He added: "Investors believe that carbon pricing is the only real, long-term policy solution for Australia". The other three green investor groups involved were Europe's Institutional Investors Group on Climate Change, the US-based Investor Network on Climate Risk and the United Nations Environment Programme Finance Initiative.

Wind farms' noise barrier

Adelaide Advertiser
Thursday 20/10/2011 Page: 69

THE State Government will today unveil its plan to end investor uncertainty for new wind farms and protect residential areas from turbine noise. An interim development plan will be published today confirming councils as the premier planning bodies but introducing a 1 km barrier between new farms and residential areas. Premier Mike Rann said the proposed barrier-which could be removed if both parties agreed-would overcome concerns about turbine noise.

"The industry has been plagued by uncertainty following a court decision to uphold an objection on visual amenity grounds, and the Victorian Government's crackdown on wind power investment", he said. "As more than half of Australia's wind farm investment is in South Australia, we have a national responsibility to take the lead in reforming policy to respect the legitimate interests of both the industry and local communities".

The Government estimates the move will unlock another $1.8 million in infrastructure investment and skew investment away from populated areas. The package will also remove the right of third parties to appeal planning approval granted to wind farms located more than 2 km from country town borders. The changes, which will not affect existing projects, effectively mirror Victorian guidelines, although they allow developments closer to residences without agreement.

A spokesman for AGL Energy-which has the right to develop 164 turbines across three South Australian sites-said the scheme would cement community goodwill by backing local government planning processes. "AGL Energy has always progressed its wind farm applications through the local council planning regime route in order for the local community to fully participate in the development process", he said.

Energy project financier Investec Bank said the clarity provided by the reforms would likely translate into more investment in the sector by cutting risk. "Finding an appropriate balance between the needs of developers and other stakeholders is a critical step in solving the state's future energy demands", state commercial director Mark Headland said.

Wind farm veto simply absurd

Herald Sun
19 Oct 2011, Page: 33

ONE resident alone can bring down a planning application for the development of a wind farm. This absurd corruption of the planning process will kill or severely limit the growth of the renewable energy industry in this state. The claims of health impacts of wind turbines are anecdotal at best. Would the Government support the same veto power for coal mines? There are similar claims of health impacts from that process also. But any ban would hurt the coal and gas companies to which they are beholden.

Rohan Sharp, North Fitzroy

Polluters' interests first

Age
19 Oct 2011, Page: 16

YOU can only be bewildered by a government that gives residents the right of veto over new wind farms within 2 km of their residence, yet potential coalmines like the one proposed for Bacchus Marsh ("Not in our backyard, locals tell upbeat mining company", The Age, 18/10), the coalmine extension at Anglesea or new coal-fired power plants like the proposed HRL plant in the Latrobe Valley are quite OK. All are, or will be, within two km of residents but have no well-funded and well-connected "Landscape Guardians" to lobby against the proposals. So excavating and burning pollutants is not a threat to the landscape.

I had to laugh at the government's comment that it was sympathetic to landowners who did not want to give up their properties for mining operations, but it would not be at the expense of the state's economic interests. Having killed off future economic benefits of wind farms, the government should just concede it is only interested in economic benefits from the polluters.

Chris Owens, Lysterfield

Record points to anti jobs stance

Age
19 Oct 2011, Page: 16

Ted Baillieu would do better to devote a bit more effort to getting Victoria out of the desalination plant's take-or-pay contract than continue his attack on Victoria's low-carbon future. This contract is going to cost Victorians far more than any slashing to the feed-in tariff will ever save.

Mr Baillieu's environmental record since the election bears summarising: slashing of the solar premium feed-in tariff; removal of the standard feed-in tariff in favour of a temporary arrangement; prohibitive restrictions on the installation of wind power generation; abandonment ofthe wind-down program for the dirty Hazelwood power station; effective abandonment of the 20% renewable energy target; and promotion of development of Melbourne's green wedges.

One could be excused for thinking that with the jobs to be lost in the solar industry, Mr Baillieu is actually anti-jobs and has no understanding that the world, like it or not, is heading into a low carbon future. But enough of this concern with the future of our children and the fate of jobs in a fickle state economy; let's get on to the important issues. Yeah, the selection of a safety slogan on number plates.

Robert Brown, Glen Iris

Power bills tipped to lift as tax row rolls on - Industry leaders call for certainty

Age
19 Oct 2011, Page: 9

AUSTRALIANS face further electricity price rises and even strains on the grid as the political brawl over the carbon tax fosters uncertainty among power generators and the clean energy sector, experts have warned.

Opposition Leader Tony Abbott came under increased pressure yesterday over his warnings to business against planning for any long-term involvement in a carbon price and his vow to scrap every plank of the carbon tax, including the $10 billion Clean Energy Finance Corporation (CEFC), which would fund green technology. The backlash came as the government was forced to swiftly correct comments from a public servant to a parliamentary hearing that suggested the $10 billion green fund would hit the federal government's budget bottom line a statement the opposition seized on as evidence of a budget black hole.

Experts and some industry leaders said yesterday that the Coalition's fierce rhetoric of recent days and the uncertainty it was creating meant the energy industry could not plan investment and could not hedge against carbon price fluctuations by buying future-dated carbon permits. Clare Savage, interim CEO of the Energy Supply Association of Australia, said that without future-dated permits, energy suppliers could not make longterm contracts with their customers, which would push up prices.

"Any issues with purchasing forward carbon permits will drive up electricity prices unnecessarily", she said. "It is a problem for us, what the opposition is doing. We make 40 or 50-year investments and they're not even giving us five years of information". Nathan Fabian, chief executive of the Investor Group on Climate Change, representing super funds and investment managers with more than $600 billion under management, said: "There are consequences in terms of price impacts in electricity markets. Prices will rise because of uncertainty".

Law firm Baker and McKenzie's global head of climate change Martijn Wilder said: "For a long time, investors have waited for some policy certainty and some real stimulus to grow the renewable energy sector in Australia and the CEFC provides a core part of that stimulus". Infrastructure Australia head Michael Deegan told a Senate hearing that the uncertainty could put strain on parts of Australia's power grid if investment froze up.

For the first time yesterday, the Coalition vowed to scrap the $10 billion green fund as quickly as possible, arguing that green technology investment should come from the private sector and was no place for government. "We think that if the project is economic it should stand up on its own two feet", Mr Abbott said during a visit to Queensland. He described claims he was creating uncertainty as "nonsense on stilts". Opposition spokesman Andrew Robb compared the fund to Tricontinental, the investment bank that collapsed in 1990.

Uncertainty plagues power

Adelaide Advertiser
19 Oct 2011, Page: 17

ELECTRICITY suppliers have criticised the Opposition for creating investment uncertainty in the sector, which could force electricity prices up by as much as 15% in future. The Energy Supply Association of Australia's Clare Savage said Opposition Leader Tony Abbott's plan to scrap the carbon price if elected and his warning to businesses that future carbon permits will be rendered worthless, has created fresh uncertainty for energy suppliers and could lead to higher electricity prices. She said the EASS had commissioned modelling which showed that "even a 5% reduction in electricity 'contracting' could result in a 10% increase for retail prices for households in a single year, and up to 15% increase in retail prices for large users". The carbon pricing scheme will become law next month.

Tariff cuts eclipse household solar panel - New limits on feed-in payments

Age
17 Oct 2011, Page: 4

THE Baillieu government has quietly cut access for most households to a second incentive to install new rooftop solar panels. It follows the decision last month to slash the state's "premium" feed-in tariff paid by retailers for rooftop solar from 60¢ to 25¢ a kW for power fed into the grid. Under the changes, the government will also restrict access to the state's "standard" feed-in tariff in place since 2004 for new solar panel systems generating less than five kilowatts, the lion's share of installations.

The standard feed-in tariff requires electricity retailers to pay households and businesses that install renewable-energy systems generating up to 100 kW the same price for energy fed into the grid as they charge for power taken out, which is typically between 20¢ and 24¢ a kW. The changes mean households installing smaller solar systems will now only be able to apply for the "transitional" 250 tariff in place for five years. The standard tariff does not have a cut-off date. Critics of the feed-in tariffs argue that they increase the cost to all electricity consumers as energy retailers bear the main costs.

The changes took the Clean Energy Council by surprise, with policy director Russell Marsh saying the group only learnt about it late on Thursday night when legislation for the 25¢ tariff reached Parliament. That is despite discussions with the Department of Primary Industries over several months about the future of Victoria's feed-in tariffs. A spokeswoman for Energy Minister Michael O'Brien said: "When the transitional feed-in tariff is introduced from 1 January, the standard feed-in tariff will not be available to customers who are eligible for the transitional feed-in tariff. "The rate of 25¢ will be the second-most-generous legislated rate in Australia".

The state government will commission the Victorian Competition and Efficiency Commission to inquire into the design of future feed-in tariffs, with a report expected to be completed in 2012. The opposition's energy spokeswoman, Lily D'Ambrosio, said: "It is becoming more evident that the Baillieu government is forcing the small scale solar power industry to take a long walk over a very short cliff to its possible demise next year". She said the legislation to put in place the new transitional 25¢ tariff also allowed the minister to shut it down any time before the guaranteed five years.

The value of clean energy

Herald Sun
18 Oct 2011, Page: 25

IT is bizarre the coal seam gas industry, with its known threat of polluting groundwater, can go into any property and start mining, whether the owners like it or not. Yet wind farms can be vetoed by anyone within a 2km radius. wind farms provide clean energy, cheaply and efficiently. The Baillieu Government is a friend of the coal industry, but can't see the value in clean energy. Coal and coal seam gas are dirty and damaging. Victoria needs jobs and energy that are clean and have a future, Mr Baillieu, just like you promised.

M. Beavis, Brighton

Big bills for new traffic lights

Herald Sun
18 Oct 2011, Page: 11

COUNCILS are spending hundreds of thousands of dollars to upgrade traffic lights with energy-efficient globes. Bayside ratepayers are being slugged $195,000 to modernise nine sets of traffic lights by fitting them with light-emitting diode globes. Stonnington Council will spend $70,000 under a VicRoads program to replace incandescent globe traffic signals with LED ones. Whitehorse is also supporting the program, while Port Phillip and Yarra would be interested in taking part.

LED systems are considered more energy efficient and cheaper to maintain than existing incandescent bulb technology, which is being phased out by the Federal Government. But the Federal Government said traffic lights were exempt and it was up to councils to decide whether to upgrade or not. However, Melissa Evans, spokeswoman for federal Climate Change and Energy Efficiency parliamentary secretary Mark Dreyfus, said changing to LED globes would save ratepayers money over time.

The nine sets of signals around New, Bay, Church and Martin streets in Brighton are owned by Bayside Council and maintained by VicRoads at an annual cost of $80,000 to ratepayers. Mayor Alex del Porto defended the "significant" cost of $195,000 to replace the lights. "It is a cost we have to bear", he said. VicRoads regional director metro southeast Duncan Elliot said the organisation had a contract to upgrade globes on about 800 traffic signal sites on state roads. He said LED traffic signals provided much better signal visibility and had a service life of more than 10 years.

Initial carbon price of little consequence in long run

Sydney Morning Herald
15 Oct 2011, Page: 14

Tax too high", shouts taxpayer. Well, blow me down. But the Business Council president, Graham Bradley, had a valid point this week when he complained Australia's carbon price, starting at $23 a tonne and ratcheting up, was "one of the highest costs of carbon anywhere on the planet". It's true, and the government will be hoping things don't stay that way for long.

Australia's carbon price fixed for three years, then floating from July 1, 2015 was meant to start roughly in line with the international market price. But in June Europe's carbon price fell out of bed, as the euro zone sovereign debt crisis deepened, dropping from its two-year, post-global financial crisis level of about €12 to €14 ($16 to $19) per tonne to roughly €7 to €10 per tonne this week. The stronger our currency, the worse that gap looks.

The price drop shows Europe's emissions trading scheme is working: if the economy weakens, emissions fall, and staying under the scheme's emissions "cap" gets easier and cheaper. No one knows if, when or how Europe will resolve its debt crisis and pull itself back into recovery. It could take awhile. On either side of the Atlantic, we might be looking at a lost decade of low growth, Japanese-style.

Worse, there is little certainty about international climate negotiations and what might follow the Kyoto Protocol when it expires at the end of 2012. The protocol establishes the "clean development mechanism", which itself establishes an international carbon price, by allowing liable parties in the developed world (Europe, mainly, because it is doing the most on climate change) to buy their emissions reduction in developing countries.

One way or another most people, according to Bloomberg New Energy Finance analyst Seb Henbest, expect the clean development mechanism to continue beyond 2012. But at some point a big chunk of demand for credits under the mechanism is going to be withdrawn again, depressing the carbon price because the European Union has put a ceiling on the amount of emissions reduction it can buy internationally: 1.68 Gt between 2008 and 2020.

Other jurisdictions will enter the market Australia from 2015-16, when we float the price and link up with the rest of the world, and China, Japan and South Korea are working on their own emissions trading schemes and this is likely to push the carbon price up. A massive reduction of deforestation in developing countries, or cheap solar, or a myriad of innovative ways to cut emissions could keep the price down. And what about peak oil? With so many countervailing forces and markets that are artificial and relatively immature, it's very hard to predict where the international carbon price will go.

One thing's sure, climate change is going to get worse and emissions reduction trajectories will get only steeper. That will push the carbon price up, inevitably. Henbest is philosophical. "It's not a matter of whether the government has set the starting price too high or too low. The international price moves, they can never get that right. It's always going to be wrong in one direction or the other".

Our starting price is the result of a political negotiation, there is no science behind it. If the price starts too high in the first three years, and drops sharply once it floats, what are the consequences? Deloitte's study for the Business Council warned of the risks to the government's revenue, meaning the scheme might not be budget neutral.

For business, the risk seems less clear. Deloitte included broker forecasts that the international carbon price would range between $22.38 and $34.02 per tonne in 2015-16, by which time our price would be around $29. The council warns the high fixed price means a "hard start" for Australian industry and it wants a lower initial price. But the emissions-intensive, trade-exposed sector is getting compensation via free permits of between 66% and 95%, then tapering off. Other businesses will pass on higher costs mainly dearer gas and electricity with overall consumer prices expected to rise by 0.7% in the first year according to the government's figures. Most households get compensation for that price increase.

This year the Grattan Institute updated its modelling on the impact of a $40 per tonne carbon price on industry and households to account for the rise in our dollar and other input costs as well as higher commodity prices. The analysis assumed no carbon price anywhere else in the world. The answer", Grattan economist Tristan Edis says, "is that the vast majority of Australian industry will see little if any change to their financial viability. In fact some industries, such as steel, will be better off". Next year, he says, "July 1 will roll over and the scheme will start and the vast majority of the country won't even notice. The only people that will notice will be electricity generators".

Climate change adviser Ross Garnaut acknowledges the international price has been below the fixed price of $23 a tonne for several months "after having be en well above it for quite a while". He, too, plays down the impact: "It may be higher or lower when the scheme starts next year. The differential won't be large either way. Any negative differential for Australian trade-exposed industries will largely be offset for the emissions intensive by free permits. Knowledge that any differential is likely to be removed by international trading makes it unlikely that the small remaining differential will be influential in important investment decisions".

Which is one way of saying, tough. Neither the government nor the Greens are open to changing the starting price. A spokesperson for the Greens Deputy Leader, Christine Milne, warned that by 2015-16, if the carbon price was still at rock-bottom prices, we'll be in serious trouble: "We have to have a global price which is thoroughly recovered and on its way to growing substantially by that point in time if we're to avoid the climate crisis that is coming down the line".

paddy.manning@fairfaxmedia.com.au
twitter: @gpaddymanning

Interest-free appliances

Sydney Morning Herald
17 Oct 2011 Page: 2

PEOPLE on low incomes will be able to buy energy-efficient appliances such as washing machines and fridges with interest-free loans under a $30 million program to cut the carbon footprint of households. More than 50,000 homes will have access to the scheme, which will also send experts to people's homes to assess how they can make their daily lives more energy efficient, the Housing Minister, Jenny Macklin, said yesterday.

Ms Mackin said the Home Energy Saver Scheme will begin next year with loans of "between $900 and $1000" for households to buy new appliances. The opposition climate change spokesman, Greg Hunt, said the Coalition would look at the scheme with an open mind". "But their last energy efficiency program was the pink batts program", he said. The government's home insulation scheme was shut down amid safety fears and evidence of fraud.