Rein on solar panel credits sours business

Australian
2 May 2011, Page: 8

WHEN Tony Pecora and his electrician mate started a solar power company four years ago, they ploughed their savings into the venture with the expectation that federal moves towards reducing fossil fuel use would spark a clamour for solar panels. Instead, stock is sitting idle on the shop floor after changes in the federal government's management of solar credits flooded the market. "It's complete incompetence,' Mr Pecora said. "If you want business to actually have faith in what's going on and have confidence to invest money, there must be stability".

The number of solar installations supported by the renewable energy target scheme has blown out from fewer than 15,000 systems in 2008 to more than 120,000 last year. Until July, the solar credits scheme will provide eligible householders with an upfront payment worth five times the value of certificates their solar panels would produce. The multiple of five will then be reduced to four, and lowered each year after that to rein in the support mechanism.

The move came after the huge take up caused by the original generous subsidies flooded the system with Renewable Energy Certificates, causing their value to plummet and sparking an investment freeze among big energy investors in major projects such as wind farms.

The government moved early last year to rescue the system, splitting Renewable Energy Certificates into large scale and small scale markets, and in January the government opened an online clearing house for small scale technology certificates (STCs), where sellers offer them at the fixed price of $40 each. Then it wound back the subsidies to solar panel installations in a bid to stop the flood of new Renewable Energy Certificates.

There is still a surplus of 796,100 certificates, with figures from the Office of the Renewable Energy Regulator showing only 78,016 have been bought so far this year. Mr Pecora's company in Melbourne's southeastern suburbs employs 15 electricians and three sales staff, and is finding it difficult to manage monthly overheads of $100,000. Each container of stock ordered from overseas is an additional $250,000.

Mr Pecora said he was negotiating with customers who had ordered solar panels, but feared jobs would be cancelled if the quoted prices rose. "People aren't going to fork out another $1500", he said. "The only way it's going to work is if they do a carbon tax and tax people for what they pump into the air".

The magnificent power of three

www.smh.com.au
April 29, 2011

Sydney is a step closer to reducing its reliance on coal powered energy, with the launch of Australia's first commercial trigeneration network. The project, which links the energy use of two buildings across the harbour, uses natural gas to produce electricity on site, capturing any waste heat to provide heating and air conditioning. Electricity generated at Coca Cola Place, a high rise office building in North Sydney, is also provided to Deutsche Bank Place in the CBD Energy. Trigeneration can be up to three times more efficient than coal fired power stations, where the waste heat escapes into the atmosphere.

The lord mayor, Clover Moore, said: ''This is Australia's first open commercial trigeneration precinct, delivering a more efficient way to generate power, heat and cooling.'' As part of its Sustainable Sydney 2030 plan, Sydney City Council aims to produce 70% of the city's energy needs locally from trigeneration systems within the next 20 years. Although the complex is not in the City of Sydney, Cr Moore said it showed the viability of larger scale trigeneration.

''We must look at trigeneration and we must start to show just how effective it is in terms of saving costs, saving carbon. Eighty% of emissions are in our cities predominantly from our commercial buildings.'' The NSW Energy Minister, Chris Hartcher, said medium scale projects like trigeneration plants were more efficient than rooftop solar panels. ''We are not going to allow programs like the present Solar Bonus Scheme,.. to continue,'' Mr Hartcher said. ''But we are going to encourage a sensible attitude towards,.. energy efficiency in the community. That's why we look very much to business to set the example.'' The operators expect the plant to prevent the release of about 1000 tonnes of CO₂ each year.

Falklanders to reap wind energy - with their car batteries

www.thisismoney.co.uk
24 April 2011

The Falkland Islands could become the world's first territory to be mainly powered by a revolutionary combination of wind power and electric car batteries. Seven wind turbines already provide the islands with more than half of their electricity needs. The rest is generated by costly diesel imported to power generators. But because the South Atlantic winds often gust well above the average of 10mph, the manager of the wind farm, Glenn Ross, has adapted the pitch of the blades so that they provide a constant flow of electricity rather than providing occasional excess energy.

Levelling the output means less diesel is needed to balance the wind power output, but the islands still want to store surplus wind power. And in a groundbreaking move, the government in the capital Port Stanley has given the go-ahead to investigate using electric cars to store excess energy in their batteries, effectively creating one of the world's first independent smart grids.

Ross said: 'We are looking at distributed storage in electric cars. At times of high wind we could dial a number and get people to switch on their chargers.' At times of low wind the 3,000 or so islanders could plug their car batteries into the grid to power general usage. Combining the fixed wind power output with electric storage is a model that could be exported to other islands similarly dependent on imported diesel, said Ross. 'This could work on a Scottish island - we share similar weather,' he added.

Council outlines roles for new body

Australian
2 May 2011, Page: 8

THE peak clean energy group has taken up calls for an independent body similar to the Reserve Bank to be launched with next year's carbon tax. In a discussion paper released today, the Clean Energy Council outlines possible roles for the proposed agency including administering an emissions trading scheme and setting targets, allocating revenue from the carbon tax and issuing loans to fund green investments.

The body, which would operate at arm's length from the federal government, would constantly review projects and cut off funds to those that fail to prove themselves. Speaking ahead of this week's green energy conference in Melbourne, CEC chief executive Matthew Warren said borrowing from future carbon revenue to support green developments would enable quicker transition to low emissions technology.

"It seems insane that you would simply spend the money as it comes in the door, if the hardest part of the transformation is in the first five to 10 years", he said. "If you borrow against the future income stream and spend it now, then you will presumably make it much easier for businesses and households to cope with the scheme so you don't have to keep paying compensation".

The Clean Energy Council is an industry association representing renewable energy companies. Government adviser Ross Garnaut has previously recommended creating a carbon bank to administer carbon reduction measures, while outgoing RBA board member and economist Warwick McKibbin has suggested it set and adjust emissions targets.

Mr Warren said it would be challenging for an independent body to set the carbon price. Britain plans to establish a green investment bank next year to spur investment in low emissions technology. Coordinated funding would make it easier to monitor different projects and pull their funding if necessary. "You've got to keep delivering in order to keep getting funded. There's competition between the sectors but equally there's accountability so we don't get the feeling we're just doing stuff because the money was allocated".

Mr Warren said projects deemed too risky by traditional lenders needed an influx of capital now, pointing to geothermal and ocean wave energy as areas where public funding should step in. "The funds at the cutting edge of the most risky private investments, their basic view is we need to get our money back plus something in five years or we're not going to do it", he said. "The geothermal industry or the ocean industry aren't going to give you a payback in five years. It doesn't mean it's bad technology, it's just going to need some help".

Coles ordered to use green power

Courier Mail
29 April 2011, Page: 17

A MULTIMILLION dollar Coles development on the Sunshine Coast will have to source at least half its power from climate safe, renewable sources under council stipulated conditions. It is believed to be the first such demand for a large scale development by the Sunshine Coast Regional Council, which has foreshadowed similar conditions for future projects. It means the Nambour supermarket will be largely powered by renewable energy, including solar or wind farms.

Coles spokesman Jim Cooper said he was not aware of any other local authority raising the issue of climate safe energy sources for a Coles facility, or if any facility now used a significant amount of green power. "We'll go through the (approval) documents when we receive them and consider those in due course", Mr Cooper said.

The council said the energy condition, which Coles could meet via buying green energy or building on site generation, was a chance for Coles to show it was a "good corporate citizen". Cr Vivien Griffin said: "I added the condition because this council has adopted some fairly serious approaches to the issue of climate change and we are a region very subject to the impacts of climate change. "CO₂, emissions from electricity consumption are an off site impact just as filling in a floodplain is,.. so this is about coming back to basic planning principles that any new development should not have those off site impacts".

In the US, a federal program to encourage use of green energy has led big companies to slash their greenhouse gas emissions. Intel, the world's largest chip maker, now derives 88% of its power from solar and wind farms. Australia's reliance on coal for 80% of its power makes it the developed world's worst per capita CO₂, emitter. Renewable energy companies say the Federal Government's weak emission reduction targets and the lack of a national feed in tariff for renewable energy mean Australia is still lagging other major economies including China, India and the US in adopting clean energy.

Solar coup for ANU

Canberra Times
29 April 2011, Page: 2

A new project aimed at driving down the cost of renewable energy is expected to attract millions of dollars in licensing fees for the Australian National University. The world's largest manufacturer of solar cells, Trina Solar, and researchers at the ANU will work to increase the efficiency of solar cells during the ANU Solar project. The $10.7 million project, launched at the ANU yesterday, aims to keep Australia at the forefront of solar research. A Federal Government grant of $3.3 million from the Australian Solar Institute will go towards the project. The ANU will also work with the University of New South Wales during the project.

First fuel-cell scooter to hit road for tests

www.theleader.com.au
24 Apr, 2011

Suzuki has become the world's first motorcycle maker to earn Whole Vehicle Type Approval 1 compliance for a fuel-cell-powered vehicle in the European Union with a squadron of its Burgman scooters set to hit the road for testing.
Initially only one fuel-cell scooter was given permission to test in Britain with approval from the British government's Technology Strategy Board 2 with single vehicle approval for each scooter used in the trials. The new Europe-wide approval means the single vehicle approval is no longer necessary.

Suzuki's Burgman fuel-cell scooter made its debut at the 2009 Tokyo Motor Show and since February last year Suzuki and British company Intelligent Energy, developer of the bike's fuel-cell system, have been involved with on-road trials. The scooter employs an air-cooled fuel-cell and hydrogen tank inside its frame to produce electricity which in turn powers a drive motor and the only exhaust emission is water. Suzuki says it wants to have fuel-cell scooters ready to go when hydrogen filling stations come on line across Europe.

Power costs can be curbed

Summaries - Australian Financial Review
27 April 2011, Page: 54

The New South Wales Independent Pricing and Regulatory Tribunal (IPART) recently announced that electricity costs in the state will rise 18% this year, adding further pressure to households already struggling with power price rises. The regulator expects a carbon price to add 20% more to those bills. The Reserve Bank of Australia points out that Australian electricity prices are still moderate compared with most other countries, and household income is rising at twice the rate of inflation.

Although rebates for energy saving initiatives are worthy, the poorly planned renewable energy rebates have added to electricity bills and will be most felt by the less well off. Ross Garnaut has advised that demand controls be implemented. John Howard's national energy market has been ignored by Resources and Energy Minister Martin Ferguson and Climate Change Minister Greg Combet should overhaul the renewable energy strategies that have added to power bills. Giving rebates for solar panels discriminates against the poor and more funding should be offered to wind farm projects.

Oil giants play loose with facts on gas

Sydney Morning Herald
23 April 2011, Page: 17

SENIOR executives in the fossil fuel industry have launched an all out assault on renewable energy, lobbying governments and business groups to reject wind and solar power in favour of gas, in a move that could choke the green energy industry.

Multinational companies including Shell, GDF Suez and Statoil are promoting gas as an alternative green fuel. These firms are among dozens worldwide investing in new technologies to exploit shale gas, a controversial form of the fuel that has rejuvenated the gas industry because it is in plentiful supply and newly accessible because of technical advances in gas extraction that are known as fracking.

Burning gas in power stations releases about half the carbon emissions of coal, allowing gas companies to claim it is a green source of fuel. For the past two months company lobbyists have been besieging governments in Europe, the US and elsewhere. Central to the lobbying effort is a report saying that the European Union could meet its 2050 carbon targets more cheaply, avoiding costs of 990 billion ($1.3 trillion), by using gas rather than investing in renewables.

However, The Guardian has established that the analysis is based on a previous report that came to the opposite conclusion: that renewables should play a much larger role. The report being pushed by the fossil fuel industry has been disowned by its original authors, who referred to it as biased in favour of gas. The new report relies on questionable assumptions about the future price of technology to capture and store carbon.

The team at the European Climate Foundation that produced the original report described the new version, commissioned by the European Gas Advocacy Forum, as "biased to one preferential outcome in support of gas advocacy". It warns that adopting its conclusions would expose the European economy to volatile gas prices.

Further doubt has been thrown on the industry's claims by an academic study from Cornell University which found that generating electricity from shale gas produced at least as much CO₂ as coalfired power, and perhaps more, because of the difficulty in extracting the gas. James Smith, outgoing British chairman of Royal Dutch Shell, one of the leaders in the lobbying effort, said switching to gas would offer the world a "breathing space" in the battle against climate change.

This view was challenged by David Mackay, chief scientific adviser to Britain's Department of Climate Change and Energy Efficiency. He said: "You can't reach the [climate] targets like this. There is no way that switching to gas would solve the problem. I don't think it's really credible that gas is the only future". Nobuo Tanaka, executive director of the International Energy Agency, said gas was "complementary to renewables, as it could be turned on and off quickly, could be baseload power and [avoid use of] coal".

Solar panel industry pleads for help

Sydney Morning Herald
23 April 2011, Page: 1

COMPANIES that install rooftop solar panels have warned the federal government the industry is on the verge of collapse because of a slump in the value of Renewable Energy Certificates. The industry is calling for certainty so it can offer the panels at a set cost, not one that depends on the wilting price of the small scale technology certificates. As the price of certificates falls, so do the rebates that keep down the consumer's cost. In January it was $37; now it is $31.

One installer, West Coast Solar, said a flood of cheap certificates for small scale renewable energy projects was forcing it to turn away customers who had already paid deposits. "This makes the whole industry look bad and brings the type of debacle the home insulation program resulted in", a spokesman, Jay Funnell, said in a statement. "If the industry cannot effectively promote and sell their products at a reasonable price, the industry will be decimated".

The government said it would work to avoid a boom bust cycle, including limiting the issue of new certificates which this month were being produced at the rate of more than a million a week. It is also considering limiting rebates to households that buy larger and more efficient solar panels generating 2 or 3 kilowatts, rather than the present standard of 1.5 kilowatts.

From January 1 the scheme was modified so that certificates were issued for household scale projects, and separate ones for large scale projects. Four extra certificates "phantom credits" were issued for every MW of renewable energy generated, despite warnings that this would deflate the certificate price.

The federal opposition said the government needed to move urgently to steady the certificate price. "There is looming evidence of a potential solar crisis but the federal government has ignored this evidence, just as it did with the problems in the home insulation program", said the opposition spokesman on climate action, Greg Hunt. "The government's generous 'phantom credits' scheme for solar has cooked the market, and the solar quota is likely to be filled within months, causing the industry to go from bubble to bust".

The Climate Change Minister, Greg Combet, said the Coalition and the Greens had supported the changes in January. The boom was also fuelled by the high Australian dollar by state solar panel tariffs. "The government has been monitoring the growth of the industry closely and will continue to consider how best to support [it]", he said.

Panax is doing well in Java

Courier Mail
23 April 2011, Page: 82

BENEFITING from an Indonesian Government push to roll out climate safe energy sources, Brisbane based geothermal developer Panax Geothermal is to jointly build a large geothermal power plant in East Java. Panax Geothermal said it had signed a binding deal with power company PT Bakrie Power, which holds the tender to build the 165 MW Ngebel project. Panax Geothermal will earn a 35% working interest in the project through funding exploration works before commercial development begins, at which point the companies will share development costs.

Panax Geothermal will be project operator during exploration and feasibility stages. Commercial development is due to start late next year. The Indonesian Government's carbon reduction plans include expanding the amount of zero emissions electricity from geothermal sources to more than 4000 MW within four years. "Panax Geothermal is committed to building a strong geothermal business in Indonesia", Panax Geothermal managing director Kerry Parker said. "This represents our fourth project in Indonesia". Indonesia offers a guaranteed feed in tariff of $US97 per MW/hour, plus carbon credits, to geothermal energy generators so as to provide certainty for renewable energy investors.

Australia, the biggest per capita emitter of greenhouse gases in the developed world, lacks a national feed in tariff for renewable energy. The Gillard Government is losing the battle to cut Australia's emissions of planet warming gases, with official data this week showing Australia's greenhouse gas output last year rose by 0.5% The data showed energy sector emissions including from power stations, transport and fugitive emissions form 75% of Australia's emissions, and the sector's emissions have soared by 44% in just 10 years.

Carbon tax critics should heed lessons of history

Sydney Morning Herald
26 April 2011, Page: 10

If Australian business is going to be disadvantaged by "going it alone" with a carbon tax, as the Business Council of Australia claims, would it be true to say that we are unfairly advantaged being among the world's top carbon emitters per capita? The arguments put forward by the council, Gerry Harvey and many other groups lobbying for compensation would have us exploit and pollute the environment ad infinitum because, as they see it, we don't make a difference ("Harvey slams illogical tax", April 25).

But the point is the world cannot keep doing business the way it has since industrialisation, and if we don't make fundamental change we will be left stranded continuing to use increasingly inefficient forms of energy because no one is willing to invest.

This will in the end have a very negative effect on our economy and our international competitiveness, and we will soon find ourselves overrun and our economy relying totally on foreign investment from large industrialised countries, such as China, who have not waited for world consensus to get on with the business of change.

We cannot wait any longer, and while no doubt much of the noise made about the consequences of the tax is just lobby groups jostling for handsome compensation, entitled as they are, the accumulated noise is in danger of destroying the whole process.

James Manche, Bondi


Concerning the carbon tax debate and retaining the economic status quo, Tony Abbott and Gerry Harvey should open their history books. Between the mid 16th century and the mid 19th century, across the Atlantic slavery was a major economic institution. Smaller Portugal did not abandon its slave economy until after larger Britain became abolitionist.

Clearly today, most reasonable people would feel Portugal was wrong in endorsing economic priorities before taking proactive action against slavery ahead of Britain. Likewise, if Australia quarantines carbon polluters from new values and changed circumstances pending responses from the China and the United States, future Australian generations will judge us harshly.

Peter Sinclair, Ashfield


How can Paul Sheehan make statements such as solar and wind power are prohibitively expensive and cannot meet baseload power needs" ("The great carbon chasm that could swallow Gillard whole", April 25). Five minutes of research would have uncovered solar thermal power stations delivering baseload in the US, and the 370 MW Ivanpah facility being built in California's Movaje Desert being the world's largest.

In Spain, there are at least five either operating or being developed, with a further 25 to 30 being planned by the EU for southern Europe. As well there are World Bank funded projects being developed in Egypt, Mexico and Morocco. If one of Mr Sheehan's points is in error, how can we possibly believe the rest of his argument?

John Newton, Glebe


Paul Sheehan missed one important argument against a carbon tax. We are already [laying much more for electricity and petrol, but has this changed our consumption patterns? Have we moved to renewable forms of energy? The answer, quite simply, is no. The carbon tax is one big con and I hope people are beginning to see through it.

Ronda Wakeley, Dural

Wave energy harnessed

West Australian
21 April 2011, Page: 16

Large scale wave energy has come a step closer to becoming a commercial reality after a WA company launched a world first flotation buoy in waters off Garden Island. Fremantle based Carnegie Corporation Wave Energy said the successful deployment of the 7m wide buoy, called a CETO unit, was proof waves could generate reliable, renewable energy. The submerged unit, launched at the weekend, harnesses the wave energy beneath the surface, much as seagrass moves to and fro as waves move through the water column. The float is not connected to the power grid, but it could be used to drive a turbine and supply power to homes and businesses.

Carnegie Corporation chief executive Michael Ottaviano said the technology could be used in the southern half of Australia and around the globe. CSIRO calculations showed that if just 10% of the wave energy off southern Australia was turned to electricity, half the country's entire power demands could be met. Carnegie Corporation aims to deploy a further 10 to 20 buoys off Garden Island enough to generate 5 MW of power. It has a bigger project in Albany, which could potentially generate 50 MW.

Charity solar power installation takes Melbourne Citymission back to the future

Clean Energy Council
19 Apr 2011

The century-old Hartnett House in Brunswick was fitted with the latest in clean energy technology today, to mark the official launch of the inaugural Clean Energy Week, to be held in Melbourne, May 2-7. Leading solar company Clenergy donated and installed a three-kilowatt solar power system valued at $10,000 at the Melbourne Citymission facility on Albion Street. Clean Energy Council Chief Executive Matthew Warren said the charity installation was a fantastic way to launch the landmark event on Australia's clean energy calendar.

"Hartnett House and Melbourne Citymission have been providing magnificent service to the local community here for a century. We're bringing a wonderful old building into the new energy age, giving it access to cheap, clean power to run its operations."

Clean Energy Week will be held at the Melbourne Convention & Exhibition Centre and is expected to attract more than 1500 delegates from Australia and around the world. It will be the biggest clean energy event ever staged in Australia, combining the previously separate Clean Energy Council National Conference and Australia's biggest solar event, the ATRAA Conference.

In another first, the Clean Energy Week exhibition area will be open to the public and the week will also feature a newly introduced education program for school children that sold out in days. "We felt it was time to open our doors to the public, because the shift to clean energy sources is one which will reach into every lounge room and will be talked about at every kitchen table in the country," Mr Warren said.

"The first two days of the conference will focus on the major policy challenges. We are lucky to be joined by some of the world's leading authorities on carbon pricing, investment finance and clean energy innovation by industries such as defence. "The latter half of the week will feature an innovative schools program teaching kids about clean energy and energy efficiency, and public open days for anybody wanting to know more about the energy technologies of the future," he said.

IPART blame game hits wrong target

Clean Energy Council
15 April 2011

Australia's peak body for renewable energy says the previous NSW government's solar scheme should bear the blame for the electricity price increases attributed to renewable energy by the Independent Pricing and Regulatory Tribunal (IPART). Clean Energy Council Chief Executive Matthew Warren said it was not accurate to blame the Commonwealth Renewable Energy Target when network costs were still the main driver of price increases, and the cost of renewables had been driven mainly by the design of the NSW Solar Bonus Scheme.

"Two thirds of the projected price increases are due to investment in poles and wires," Mr Warren said. "The Renewable Energy Target is an important scheme that will help to drive the transition to cleaner energy in Australia. In contrast, the poorly designed NSW scheme simply overheated the market. It has been the biggest contributor to the smaller renewable component price rise announced yesterday.

"The over-ambitious gross feed-in tariff in NSW delivered another boom-bust for an emerging solar PV industry that is starting to make a real difference to energy use and carbon emissions in Australia. "That type of short term policy doesn't help the renewable industry and it now has to be paid for by NSW households. But this is not the fault of the Commonwealth Renewable Energy Target and IPART knows this. "Network upgrades continue to be the main driver of electricity price increases in Australia," he said.

Carnegie makes waves with renewable energy

West Australian
20 April 2011, Page: 4

Carnegie Corporation Wave Energy has notched up a major win in the race to commercialise new renewable energy technologies, after becoming the first company in the southern hemisphere to generate electricity from the ocean's waves. The WA company was expected to announce this morning that it had successfully activated its first commercial scale CETO unit off Garden Island at the weekend, ahead of schedule.

The milestone, which comes after five years of testing its technology at selected sites across the country, means Carnegie Corporation is a step closer to producing the promised 5 MW of grid connected power from the site. Carnegie Corporation's technology developed by company founder and inventor Alan Burns, relies on buoys anchored on the ocean floor that use the motion of passing waves to drive pumps which then deliver pressurised water to shore.

The company will monitor power produced at the Garden Island site over the next month and if all goes to plan, will eventually install up to 30 units, enough to produce power for 3500 homes. Carnegie Corporation managing director Michael Ottaviano said yesterday the unit was producing power "exactly as expected". "This is the most significant milestone in Carnegie Corporation's history", Dr Ottaviano said. The State Government has invested $12.5 million in Carnegie Corporation's efforts to bring its CETO technology to market.

But despite Australia's reliable wave source, the company has increasingly been forced to look overseas for development funds. In 2009, it scrapped plans to develop the world's biggest wave energy project near Albany after it was overlooked for a major Federal Government grant. The $300 million pilot project had aimed to produce 50 MW of power, enough electricity for 30,000 homes. WA gets about 5% of its power from renewable sources, predominantly wind power. The Federal Government has set a national target of 20% by 2020.

Wind farm split up set to cost jobs

Hobart Mercury
20 April 2011, Page: 23

THE Roaring 40s wind farm joint venture between Hydro Tasmania and China Light and Power is to be dissolved. Hydro chief executive Roy Adair said the partnership had become strained when the partners became competitors in the National Electricity Market Management Company, particularly after Hydro Tasmania developed its retail business Momentum Energy. The dissolution is expected to result in some redundancies among the 40 staff.

Roaring 40s' assets would be divided and no cash would change hands. Hydro Tasmania would take ownership of the 140 MW wind farm at Woolnorth, in Tasmania's North West. It would get a share of the 168 MW development opportunity at Musselroe Bay, in Tasmania's North East, and a further, unnamed. 80 MW opportunity. CLP Group subsidiary TRUEnergy would take over the 111MW Waterloo wind farm and assume a 50% share of the 66 MW Cathedral Rocks wind farm. Both are in South Australia.

Hydro Tasmania said CLP Group would get a share of three potential developments in Victoria and South Australia, totalling 213 MW. Formal execution of the deal is targeted for the end of June. Mr Adair said some staff would be offered positions while others would be offered redundancies. The joint venture was established in 2005 to pursue renewable energy developments in Australia and overseas, particularly in China.

Hydro Tasmania sold its share of Roaring 40s' Chinese and Indian portfolio to CLP Group in April 2009 to concentrate on Australian development opportunities. Opposition spokesman Matthew Groom said the split put the $450 million Musselroe development under a huge cloud. Tasmanian Chamber of Commerce and Industry chief executive Robert Wallace said if the Musselroe wind farm did not go ahead it would be a severe blow to the state.

Focus on the premiums

Age
20 April 2011, Page: 18

THE carbon tax debate has been seriously hijacked. Surely a carbon tax should be about disincentives to CO₂ producers and incentives to reducers. The incentives should flow to investments in renewable energy. Currently we pay a premium if we opt for renewal energy this should be changed so that we pay a premium if we do not opt for renewable energy, be it solar, wind, geothermal or hydropower. This gives an incentive to power suppliers to invest in renewable energy. Similarly, petrol prices should rise. The government should be subsidising electric, hydrogen powered and hybrid cars instead. The carbon tax should not produce a slush fund for politicians.

John Yeo, Glen Wayeriey

Coal mines told to pay for emissions

Age
20 April 2011, Page: 2

Change Minister Greg Combet has slapped down Australia's coal miners, telling them they will not win an exemption from paying a carbon tax. In a meeting with the six biggest coal miners Bill1, Rio Tinto, Xstrata, Peabody, Centennial Coal and Anglo American Mr Combet yesterday said the government would include coal mines under a carbon tax to drive changes in the industry.

Coal miners want their emissions exempted from any carbon price. Coal mines produce "fugitive" emissions mainly methane, a potent greenhouse gas during mining. During the meeting, the companies are understood lo have told Mr Combet that if those fugitive emissions are not excluded from a carbon tax, they are likely to invest more in countries where carbon is not taxed.

Under the now dumped emissions trading scheme, coal miners were to get SI.5 billion in compensation over five years. Climate Change Minister Greg Combet said last night that the government was willing to discuss "assistance for the most affected coal mines to support jobs and competitiveness", but that previous economic modelling had found that most mines would only face marginal costs due to methane emissions.

The Grattan Institute has found 95% of thermal coal mines (coal for producing power) and 70% of metallurgical coal (for producing iron and steel) mines will face only small impacts from a carbon price of even $35. Those left facing bigger impacts will be covered by soaring global coal prices, the institute concluded, increasing coal margins to at least $44.50 a tonne for thermal coal and $96.50 per tonne for metallurgical coal over the coming years.

The meeting with coal miners followed a separate meeting between Mr Combet and Resources Minister Martin Ferguson and a broader mix of trade exposed industries. The Age understands during that meeting, Shell, One Steel and Visy made vocal representations about the effect of a carbon tax on their industries. The Business Council of Australia and the Australian Industry Group also put forward their members' views.

Yesterday the government set up another industry consultation group to discuss how a carbon price would affect farmers, other food producers and the forestry industry. Greens senator Christine Milne said some sectors such as steel had a case for compensation because they were trade exposed, but all companies should not simply be compensated for lost profits.

Garnaut pushes soil carbon scheme

Australian
15 April 2011, Page: 4

Julia Gillard's climate change adviser, Ross Garnaut, will push the federal government to include agricultural carbon sequestration in its emissions reduction regime when he delivers his final paper next month. Professor Garnaut, who was visiting a sustainable farming operation near Armidale in northeast NSW yesterday, called on the federal government to provide additional funds from revenue raised by the carbon price to boost research into soil carbon sequestration techniques.

He was in Armidale, in the New England electorate of key independent Tony Windsor, to deliver a public lecture on his series of eight papers updating his 2008 climate change review. The final Garnaut report to the government on May 31 will include a budget on how to include the carbon offsets created by soil sequestration in the emissions trading scheme. He has previously said up to 14% of the carbon permits scheme could be used for agricultural offsets, creating the equivalent of a new wool industry for the agricultural sector.

The inclusion of agricultural offsets in the program would involve the government making a major departure from Kevin Rudd's Carbon Pollution Reduction Scheme, which did not include the measure. Professor Garnaut was visiting Lana, owned by Tim and Karen Wright, who have dramatically increased the yields from their property, including during severe droughts, by ceasing the use of phosphate fertilisers and using ecologically sustainable methods to manage their property.

The result has been a massive increase in the soil microbes, which has boosted the carbon content of the soil, increased its water holding capacity and made the property drought resistant and able to carry more sheep. Professor Garnaut told a small gathering at the Wrights' farm yesterday he wanted direct linking of land sequestration to the carbon pricing scheme. He said farmers should be allowed to derive the benefits of increasing the carbon content of soil even if they were doing so to boost their profits.

Professor Garnaut's trip, at the invitation of Mr Windsor, came as the rural independent MP warned the government yesterday he would not "vote for something that does nothing". "There is no carbon tax, there may not be a carbon tax", Mr Windsor told ABC radio. "The Prime Minister doesn't have the numbers, as I understand it at the moment. But Ms Gillard played down the significance of Mr Windsor's comments, saying the independent MP had consistently said he would not commit to anything until the legislation was finalised.

Energy answer blowing in wind as China chips in to $6b project

Courier Mail
14 April 2011, Page: 54

A PARTNERSHIP of Australian and Chinese companies plans to build $6 billion worth of wind and solar farms in Queensland, Victoria and New South Wales and become a significant energy market player. Sydney based renewable energy company CBD Energy's managing director Gerry McGowan yesterday said a final agreement to be signed on monday would see CBD Energy in a joint venture with China Datang Renewable Power Co and Tianwei Baobian Electric Co.

They will create a JV company called AusChina Energy Development, which plans to develop and retain ownership of $6 billion worth of wind and solar power plants in Australia within eight years. CBD Energy's alliance will benefit its Queensland based solar subsidiary, eco-Kinetics, which separately is partnering with Tianwei to establish a solar panel manufacturing facility. Production of solar panels for export from the new factory will start in mid year, with output forecast at 60 MWs of solar modules a year.

Mr McGowan said the new JV company aimed to make wind and solar power stations which don't generate greenhouse gas emissions competitive with the coal and gasfired power plants that are a major cause of global warming. "We'll be accessing turbines made in China and debt from China, and we think we can significantly reduce the cost of renewable energy", Mr McGowan said. "We're hoping we can reach grid price parity in a short space of time".

He said AusChina Energy would be viable even without a carbon price being legislated here, but he said carbon pricing was important to provide long term certainty to help underpin investment in clean energy assets. Separately, the Federal Government yesterday committed $34.9 million to help construct a $105 million project to add 44 MW of solar power capacity to Queensland Government owned CS Energy's coal fired Kogan Creek power station near Chinchilla.

Government urged to link energy-saving program to carbon tax

Age
Thursday 14/4/2011 Page: 2

A COALITION of clean energy groups and big companies will today urge the government to establish an extensive energy saving program alongside a carbon tax to help households lower their power bills. The group, which includes energy giant AGL Energy and the Clean Energy Council, says Labor should accept the findings of a government advisory group that last year recommended a scheme be set up requiring electricity retailers to ensure their industry and household customers used less energy.

The scheme could save households between $50 and $243 a year on their power bills and would complement a carbon tax, the business coalition says. Medium businesses could save between $10,608 and $23,712 a year. The government has yet to respond to the report from the Prime Minister's advisory group on energy efficiency, despite having received it more than six months ago. A spokeswoman for Climate Change Minister Greg Combet said there had been extensive consultation on the report and the government's response was being considered.

The task group's report also recommends setting a target to cut energy intensity the amount of energy used per dollar of gross domestic product by 30% over the next decade, requiring an average cut in power use of 16% for every Australian. A spokeswoman for AGL Energy said the company "has long been an advocate of the establishment of a national energy efficiency scheme which amalgamates the various state based schemes currently in operation". "We support the government in implementing this, as a complementary policy to a carbon price, as soon as possible".

Clean Energy Council chief executive Matthew Warren said: "A national energy efficiency scheme needs to be complementary to the implementation of a carbon price it's the most effective way to help households and businesses save money on their power bills". "As Minister Combet said in his address to the National Press Club yesterday, any additional savings that households can make from energy efficiency will be extra money in the bank after compensation is allocated". The energy efficiency push comes as a group of 21 big companies, including AGL Energy, BP, IKEA GE, Linfox and Arup came out in support of a carbon price yesterday, following a week of complaints from the mining and manufacturing sectors about Labor's carbon tax plans.

A joint statement by the companies said that: "as the costs of action are outweighed by the costs of delay, the carbon price should be implemented as soon as possible. "A price should be accompanied by appropriate transitional assistance for households and trade exposed industry, as well as complementary measures that reduce emissions at least economic cost".

Panels glut clouds solar prospects

Summaries - Australian Financial Review
13 April 2011, Page: 10

The rush for households to have solar panels installed prior to a scaling back of government subsidies from July 1 has led to fears of a shakeout in the industry. Acil Tasman has provided modelling for the Office of Renewable Energy which suggests that 35 million Renewable Energy Certificates for solar panel installation will have been created by December.

While the opposition has raised comparisons with the failed home insulation scheme, the solar industry is concerned that installers will be left holding worthless certificates. They fear that the government has over regulated the industry, fearing a repeat of the botched insulation program. Warwick Johnston of Sunwiz consultancy warned of oversupply of certificates and Solar Shop retail general manager Daniel Edgecombe said it was important for consumers to have their site correctly assessed.

City of Sydney sheds light on saving energy

Summaries - Australian Financial Review
12 April 2011, Page: 4

The CitySwitch Green Office venture is being largely driven by the efforts of the City of Sydney council, which is going to tender at the end of April to install LED technology in 8500 street lights. "We could probably achieve across the city savings of about 40% compared with current technology", Garry Harding, director of city operations, says. Nine manufacturers have taken part in a trial of "smart control" lights since November, including Gerard Lighting Group division Sylvania Lighting Australasia, GE, iGuzzini, Philips Lighting and Osram.

According to Chris Derksema, sustainability director at the City of Sydney council, LED street lights have already reduced lighting consumption by 50%, an impressive result given building owners are required to disclose the energy performance of their properties whenever they sub lease, lease or sell the building under the Commercial Building Energy Efficiency Disclosure Act. LED technology also helped Stockland secure a five star National Australian Built Environment Rating System rating.

Gas firms 'don't need help on carbon tax

Age
12 April 2011, Page: 6

A CALL for liquefied natural gas to be exempted from a carbon tax has been undermined by evidence the industry would boom over the next decade even if it received no compensation, analysts say. Don Voelte, chief executive of LNG company Woodside Petroleum, said his industry should be excluded from a carbon price, in part because gas has lower greenhouse gas emissions than coal. Mr Voelte said Australia was "going it alone" on climate change and warned a carbon tax could lead to the delay or cancellation of some of the $170 billion worth of gas projects being built or considered.

Analysts said it was wrong to say Australia was going it alone in imposing a carbon price. The European Union, New Zealand and some US states have emissions trading systems, with California to follow next year. Mr Voelte's claims are at odds with an analysis by think tank the Grattan Institute, which found that proposed gas projects would reap large profits with or without a carbon price. The detailed institute study released last year found a carbon tax was highly unlikely to affect gas investment as it would increase total project costs by only a fraction.

The institute found there was no environmental justification for paying LNG projects any compensation as there was no evidence a carbon price would lead to their moving offshore. A recent analysis by J.P. Morgan suggested Woodside Petroleum's profit in 2013 would be reduced by little more than 2%, assuming a carbon price of $25 a tonne and compensation equivalent to that under Labor's shelved emissions trading scheme.

Grattan Institute chief executive John Daley said its analysis found all proposed projects would remain highly profitable, assuming surging gas prices held up. "A carbon price does not appear to threaten the viability of any of the projects that are proposed", he said. "One of the reasons demand for gas is going up is concern about carbon. For the gas industry to take the benefit of that increased demand and at the same time ask to be protected from the carbon price seems to me to be taking one side of the coin and not the other".

Climate Institute deputy chief executive Erwin Jackson said LNG would be better placed to respond to a carbon price than some other fossil fuel industries. He said a carbon price of $30 per tonne emitted would make it profitable for LNG companies to invest in technology to capture and store gas underground. "They're just being bullies to try to get a better deal", he said.

Under the 2008 emissions trading proposal LNG firms were not going to be compensated. Revisions led to the industry being offered two thirds of carbon permits free, plus $610 million in direct compensation. Resources Minister Martin Ferguson left the door open to a compromise on LNG, saying the government would consider its rapid growth and industry changes when deciding compensation.

Speaking at a petroleum industry conference in Perth, Mr Voelte responded that "the stoush has just begun" with the government. Climate Change Minister Greg Combet said the government would support the industries most affected under a carbon price, but the biggest polluters must play their part.

Energy crisis casts shade over Pilbara

Age
11 April 2011, Page: 4

THE West Australian government is scrambling to find electricity to keep the lights on in the Pilbara because the mining giants that generate power for the region no longer have spare capacity. Horizon Power, the government company that provides electricity to regional areas, is urging Premier Colin Barnett to build immediately a $400 million power station to avert an energy crisis.

The company's executives say a decision needs to be made now to give them any chance of building the plant in time to get the extra 100 MWs needed by 2013 . They are preparing to hire diesel generators, which are expensive to operate, as an emergency back up to avoid brownouts in Karratha and Port Hedland. Treasury is opposed to a government funded power station because it will add to WA's growing debt, expected to reach $20 billion by 2014. Long term contracts with private generators would avoid the debt burden and stimulate competition, Treasury says.

But it is understood that private companies keen to provide electricity have struggled to get enough gas to fire their turbines while others found Horizon's terms untenable. WA Opposition Leader Eric Ripper said it was unbelievable that in "such a strategically important energy province" the government was grappling with an energy crisis. He attacked Mr Barnett for being obsessed with "pet projects" at the expense of core infrastructure.

"What credibility does the Pilbara Cities project have if they cannot keep the lights on in a sustainable way? If the Premier had adopted Labor's proposal for an integrated electricity grid in the Pilbara and an associated electricity market, proponents would be lining up to build stations", he said.

Horizon Power said this week that peak demand in the North West Integrated System, which covers the Pilbara, would grow from 025 MWs this year to 158 MWs in 2015-16. The company said the current level of power generating capacity in the system could meet community and industry needs for the next two years, but rapid regional growth and continued expansion of industry and resource demands would put pressure on available supplies.

In last year's annual report, the company warned that "another 100 MWs of new or replacement generation capacity.,, will need to be operational by 2013". The power squeeze has been caused by the resources boom, with BHP Billiton and Rio Tinto needing all the electricity they generate to keep their own projects operating.

Japanese in $1.2bn Griffin power buy

Weekend Australian
9 April 2011, Page: 27

TWO Japanese energy giants have joined forces to buy failed tycoon Ric Stowe's Bluewaters power stations in Western Australia, in a deal worth about $1.2 billion. The administrator of Mr Stowe's Griffin Group, KordaMentha, confirmed yesterday that power utility Kansai Electric Power and conglomerate Sumitomo Corporation had agreed to buy the coal fired stations at Collie, 200km south of Perth.

It is Kansai Electric's first move into the Australian power generation sector and its second major investment in Australia after it grabbed a 5% stake in Woodside Petroleum's $14bn Pluto gas project in 2008. Sumitomo already owns a 70% interest in a gas fired power plant, formerly owned by Babcock and Brown, at Kwinana, south of Perth.

The sale price for the Bluewaters power station assets was not disclosed but sources indicated it was just under $1.2bn, which would represent an excellent result for creditors who stand to reap almost 100¢ in the dollar since the collapse of Mr Stowe's empire in January last year The complex two stage transaction will involve the Japanese companies each emerging with a roughly 50% stake in Griffin Energy. The sale requires approval from creditors who are mostly international bondholders and is expected to be completed within two months.

In a statement, KordaMentha administrator Scott Kershaw said: "The purchasers are high quality counter parties who have substantial investments in power generation on a global basis". The deal means the only assets of Mr Stowe's still to be offloaded are the Emu Downs wind farm and the former magnate's sprawling retreat at Bullsbrook, on the outskirts of Perth, which was once valued at $70 million. A sale of Emu Downs, about 200km north of Perth, is expected to proceed in the next few weeks.

Another Japanese company, Eurus Energy, is considered a leading bidder to acquire the asset, which is expected to fetch about $200m. Emu Downs is a joint venture between Griffin Energy and Queensland's Stanwell Corporation. The reclusive Mr Stowe, who spends most of his time in Monaco, is not expected to see a significant return from the breakup and sale of his empire. "The enterprise value of the Griffin Group is nothing, said one source yesterday.

Financial advisers from Macquarie Bank and UBS worked on the Bluewaters power station transaction. The sale of the power stations comes after Indian infrastructure giant Lane.° Infratech agreed to buy Mr Stowe's Griffin Coal in December last year for about $8.30m and revealed it planned to spend a further $1bn on a major expansion of the Collie mines. The Indian owned Griffin Coal will now supply the Japanese controlled Bluewaters power stations. Mr Stowe's Griffin Group collapsed in January last year with more than $1bn in debt linked to its development of the power stations.

Solar scheme so successful that the plug will be pulled

Sydney Morning Herald
9 April 2011, Page: 4

THE Climate Change Minister, Greg Combet, is looking for new ways to slow the runaway demand for rooftop solar systems that has put pressure on electricity prices and made it harder to sell the government's proposed carbon price. Mr Combet is understood to be very concerned at the huge growth in rooftop solar, fuelled by generous state and federal subsidies, and is considering options to slow demand, including requiring households to buy bigger and more expensive systems to be eligible for a reduced federal government subsidy.

State governments have become increasingly alarmed at the pressure on electricity prices from the federal subsidy, which flows straight through to power bills because it requires electricity retailers to buy "solar credits" awarded for renewable power generated on household roofs. And federal Labor is worried the scheme is forcing increases in electricity bills just as it is struggling to sell its new carbon tax.

In December, when almost half of a 6% increase in a draft determination for increases in Queensland electricity prices was caused by the federal renewable energy target, the Queensland Premier, Anna Bligh, wrote to the Prime Minister, Julia Gillard, asking her to review the federal scheme. The NSW Premier, Barry O'Farrell, has promised a "solar summit" to determine the costs of the state government's feed in tariff, which the former Keneally government reduced from 60¢ to 20¢ a kW to try to rein in booming demand.

In December Mr Combet sped up the phase out of federal payments for rooftop solar photovoltaics, announcing that from July 1 the government would give out four, rather than five, tradeable solar credits for every MW of roof generated renewable electricity. The tradeable certificates dramatically reduce the upfront cost of a rooftop solar installation a benefit worth about $6000 for a system of 1.5 kilowatts, and are heavily marketed by solar companies.

The government is understood to be considering reducing the number of certificates further, from four to three. It is also looking at changing the subsidy to push buyers towards bigger and more efficient systems, perhaps up to 2 or 3 kilowatts. The scheme is due to be phased out by July 2014, but some industry groups argue the scheme should be scrapped altogether with the introduction of a carbon price.

Small scale photovoltaics reduce greenhouse emissions at a cost of about $200 or $300 a tonne of CO₂, compared with the expected starting price of a carbon tax of $20 to $30. The schemes also disadvantage poorer households who cannot afford the upfront costs of the solar installation, and in effect subsidise the households who can afford them, through higher power prices. Benefits are especially lucrative in NSW and the ACT, where the state feed in tariff pays households for all the electricity they generate. Other states only pay for the excess power fed back into the grid.

$100m green energy demand

Adelaide Advertiser
6 April 2011, Page: 26

AUSTRALIA'S top renewable energy body is calling on the Federal Government to increase its existing $40 million set aside for emerging renewable industries to more than $100 million. The key recommendation in the Australian Centre for Renewable Energy (ACRE) report, released yesterday, won industry support. Leading figures said a larger pool of funds under the Emerging Renewables program could provide vital help in advancing the sector.

Federal Energy Minister Martin Ferguson said ACRE's independent advice would play an important role in guiding government support for renewable energy and his spokeswoman expected the minister to respond to its recommendations within the next few months. "Australia's great potential to produce renewable energy hinges on our ability to develop a range of renewable energy technologies and drive down their costs", Mr Ferguson said.

"The program of work ACRE sets out in its strategic directions is an important step towards achieving this objective:" Australian Solar Society chief executive John Grimes welcomed the final report's commitment to finding ways to support work into storage and grid connection technologies for solar.

And he particularly supported its finding that largescale solar showed more potential than small rooftop installations. It found: "Industrial scale solar generation located in Australia's best insolation zones provides the greatest prospect for lowest cost and abundant solar power". It said micro generation through rooftop systems was less prospective and current technologies meant they were below economic scale. "We need to move to big scale solar in Australia", Mr Grimes said.

"South Australia, in particular, has solar resources that are world class and the state is well placed to capitalise on that". The solar society now wants the Federal Government to also look at using part of revenue raised from a carbon tax to fund large scale solar projects. "And what we need for solar is a plan for the future that includes a strong Renewable Energy Target as well as an assessment of the best solar in Australia", Mr Grimes said.

The ACRE report, finalised after being released for consultation in December last year, also recognised the potential of geothermal energy. It said once proven, it could be competitive with fossil fuel sources. Yet it faced challenges in making the technology work and in attracting investment. Funding of $40 million has already been set aside under the Emerging Renewables program for developing ocean and geothermal, and Australian Geothermal Energy Association chief executive Susan Jeanes said the possibility of more funds being available to the sector was good news.

"We're very happy that the report has been released and very happy that it opens the door for us to put proposals forward to government", she said. "It's a commitment, if followed through, to support pilot demonstration plants". "It is a signal from the government to support the industry moving forward, we're very pleased that there is this acknowledgement of the importance of geothermal". Wind energy was also covered in the report, with an acknowledgment that the technology was now widespread and ACRE's priority would be in considering support for technology to improve grid connection issues.

Wave, ocean and tidal technology was listed as another priority. Fraser Johnson, renewable energy manager at Oceanlinx, supported the report's commitment to helping develop a regulatory regime around ocean jurisdictions. Oceanlinx, which is in discussion with the state government about a SA project, has previously built and operated three wave energy projects at Port Kembla, about 100km south of Sydney.

Research key to new sources

Adelaide Advertiser
6 April 2011, Page: 26

GOVERNMENT plans to establish the Australian Biofuels Research Institute will encourage a more commercial focus for bioenergy. Support would go to projects for second generation biofuels (including algae) and biopower and bioheat projects. Bioenergy involves converting biomass to heat, electricity or fuels, including using sugar cane residues, wood waste and biogas from landfill. The challenge for first generation biofuels such as ethanol was to be economic without subsidies.