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==Government policy==
==Government policy==
===Subsidies for fossil fuels===

:At present, governments in Australia provide substantial financial support for the production and use of fossil fuels, through direct payments, favourable tax treatment and other actions. These subsidies keep the cost of fossil fuel energy artificially low and make it harder for renewable energy to compete. They distort energy markets, encourage greater use of fossil fuels, create higher levels of greenhouse gas emissions and improve the profitability of energy companies that produce or use fossil fuels. In an era when climate change response has become urgent, continuing to subsidise fossil fuel production and consumption is unacceptable.

===Politics of global warming===
===Politics of global warming===


Revision as of 05:51, 18 November 2007

Part of a series on
Renewable energy

Australia's renewable energy industries cover numerous energy sources and stages of commercialisation. Renewable energy technologies currently contribute about 6 per cent of Australia's total energy supply and some 8 per cent of Australia's electricity supply, with hydro-electricity by far the largest single contributor.[1]

Following the introduction of government Mandatory Renewable Energy Targets,[2][1] more opportunities have opened up for "new" renewable energies such as wind power, photovoltaics, and solar thermal technologies. The deployment of these technologies provides opportunities for mitigating greenhouse gases.[3]

At the end of 2006, Australia had 817 MW of installed wind power capacity,[4] mainly in South Australia. A 154 MW, A$420 million, solar photovoltaic power station is planned for Victoria.[5] Initiatives are also being taken with ethanol fuel and geothermal energy exploration.[6]

Marketing strategies of private companies, and government policies, influence the commercialisation process. Survey results suggest that there is considerable public support for the use of renewable energy and energy efficiency in Australia.[7]

Key renewable energy initiatives

Wind power

The information centre near the base of one of the towers at Wattle Point Wind Farm

Wind power in Australia is clean and renewable and, at the end of 2006, Australia had an installed electricity generation capacity from wind power of 817 MW. The technology is proven, fast to build and economical compared with other renewable energy technologies.[8] However, according to one Liberal Party politician, the drawbacks of wind power include unpredictability and a supply that cannot be stored.[9]

Wind power in South Australia

Wind power in South Australia is a fast growing industry with 388MW of grid-connected wind farms installed at the end of 2006. South Australia is well suited to wind farms and more wind power is generated in South Australia than any other Australian state or territory. Some 9 per cent of electricity generated in South Australia comes from wind power.[10] Major wind farms are:

A further 263 MW of generating capacity (Hallett Wind Farm, 95 MW, Lake Bonney Wind Farm (stage 2), 78 MW, and Snowtown Wind Farm, 90 MW) is under construction.

Solar photovoltaics

Solar photovoltaic (PV) technology generates electricity from sunlight, and it can be used in grid-connected and off-grid applications.

The issue for the Australian photovoltaics industry today is that there is enormous market potential, built up through a natural competitiveness in Australian research and development, industry investment and government policy support. However, despite this, the industry is not yet self-sustaining and advantages gained to date could be lost.[11] A 2004 market report suggested that a partnership between government and industry is necessary:

"The PV industry cannot continue to actively invest in strategic industry development unless the Australian government is also committed to the journey. The industry ... requires policy and program support to assist it in bridging the gap to mainstream commercial competitiveness."[11]

Two recent projects which illustrate co-operation between industry and government are the solar power station planned for north-western Victoria, and the development of new solar cells.

Solar power station in Victoria

Template:Future power plant Many projects have demonstrated the feasibility of solar power in Australia and a large new solar power station in Victoria is planned.

Solar Systems is to build the world’s most advanced[5] photovoltaic (PV) heliostat solar concentrator power station in north-western Victoria. The 154 megawatt (MW), A$420 million project, will generate 270,000 MWh per year, enough for more than 45,000 homes. It will aid in reducing salinity and create jobs during manufacture, construction and operation. It will also reduce greenhouse gas emissions by approximately 400,000 tonnes per year.[12] Full commissioning is expected in 2013, with the first stage to be completed in 2010.[13]

The essential components of the power plant, developed by Solar Systems over the past 16 years, are as follows:

  • "An ultra powerful solar module for use in concentrated sunlight".
  • "A cooling system to keep solar cells operating at 60ºC to optimise the operation of the PV modules in a concentrated solar beam that can melt steel".
  • "Low cost, high performance mirror concentrator systems".
  • "A control system to manage the power station to deliver maximum reliability and output".[13]

The commercialisation of this technology has already seen four smaller solar power stations established in central Australia, with support from the Australian Greenhouse Office.[14]

New photovoltaic technology

SLIVER Cell (TM) photovoltaic technology uses just one tenth of the costly and limited supply of silicon used in conventional solar panels while matching power, performance, and efficiency.[15] Professor Andrew Blakers, Director of the Australian National University Centre for Sustainable Energy Systems, invented the technology with colleague Dr Klaus Weber and developed it with funding from energy supplier Origin Energy and the Australian Research Council. Blakers and Weber won the Australian Institute of Physics' Walsh Medal for their work.[16] Origin Energy is now making pre-production SLIVER modules at its A$20M pilot plant in Regency Park, South Australia. 75W modules will be released soon with production already committed.[17]

Solar thermal energy

Australia has developed world leading solar thermal technologies, but with only very low levels of actual use. Domestic solar water heating is the most common solar thermal technology.[18]

Solar water heating

During the 1950s, Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) carried out world leading research into flat plate solar water heaters. A solar water heater manufacturing industry was subsequently established in Australia and a large proportion of the manufactured product was exported. Four of the original companies are still in business and the manufacturing base has now expanded to 24 companies. Despite an excellent solar resource, the penetration of solar water heaters in the Australian domestic market is only about 5%, with new dwellings accounting for most sales.[19]

Solar thermal power

There are no large large scale solar thermal power stations in Australia, although the country has significant research, development and commercialisation efforts.[20]

The Australian National University (ANU) has worked on dish concentrator systems since the early 1970s and early work lead to the construction of the White Cliffs solar thermal station. In 1994, the first 'Big Dish' 400 m2 solar concentrator was completed on the ANU campus. In 2005, Wizard Power Pty Ltd was established by a Canberra investor in order to take the Big Dish™ technology to commercial deployment. Wizard Power has a worldwide exclusive license to the design and associated patents, an ammonia-based thermochemical energy storage system, and new advanced mirror panel technology.[20]

Research activities at the University of Sydney have spun off into Solar Heat and Power Pty Ltd, which is currently building a major project at Liddell Power station in the Hunter Valley. The CSIRO Division of Energy Technology has opened a major solar energy centre in Newcastle that has a tower system purchased from Solar Heat and Power and a prototype trough concentrator array developed in collaboration with the ANU.[20]

Cloncurry, a north-west Queensland town, has been chosen as the site for an innovative $31 million (including a $7 million government grant) solar thermal power station. The 10-megawatt solar thermal power station would deliver about 30 million kilowatt hours of electricity a year, enough to power the whole town. Ergon Energy will develop the project which should be running by early 2010.[21][22]

Geothermal energy

Geothermal energy exploration in Central Australia involves finding vast blocks of "hot rocks" with fracture systems that could generate electricity through water being injected, circulated through the fractures, and being returned to surface as steam.[6]

South Australia has been described as "Australia's hot rock haven" and this emissions free and renewable energy form could provide an estimated 6.8% of Australia's base load power needs by 2030.[6] According to an estimate by the Centre for International Economics, Australia has enough geothermal energy to contribute electricity for 450 years.[23]

There are currently 19 companies Australia-wide spending $A654 million in exploration programmes in 141 areas. In South Australia, which is expected to dominate the sector's growth, 12 companies have already applied for 116 areas and can be expected to invest $A524 million ($US435 M) in their projects by the next six years. Ten projects are expected to achieve successful exploration and heat flows, by 2010, with at least three power generation demonstration projects coming on stream by 2012.[6]

Ethanol fuel

Ethanol fuel in Australia can be produced from sugarcane or grains and there are currently three commercial producers of fuel ethanol in Australia, all on the East Coast.

Legislation imposes a 10% cap on the concentration of fuel ethanol blends. Blends of 90% unleaded petrol and 10% fuel ethanol are commonly referred to as E10,[24] which is mainly available through service stations operating under the BP, Caltex, Shell and United brands. Not surprisingly, E10 is most widely available closer to the sources of ethanol production in Queensland and New South Wales.

In partnership with the Queensland Government, the Canegrowers organisation launched a regional billboard campaign in March 2007 to promote the renewable fuels industry. Over 100 million litres of the new BP Unleaded with renewable ethanol has now been sold to Queensland motorists.[24]

Major renewable energy companies

BP Solar

BP has been involved in solar power since 1973 and its subsidiary, BP Solar, is now one of the world's largest solar power companies with production facilities in the United States, Spain, India and Australia.[25] BP Solar is involved in the commercialisation of a long life deep cycle lead acid battery, jointly developed by the CSIRO and Battery Energy, which is ideally suited to the storage of electricity for renewable remote area power systems (RAPS).

Origin Energy

Origin Energy is active in the renewable energy arena, and has spent a number of years developing:

Pacific Hydro

Pacific Hydro is an Australian company that specialises in electricity generation using renewable energy. Its focus is on hydroelectricity and windpower. Power stations owned by Pacific Hydro include:

Solahart

Solahart manufactured its first solar water heater 50 years ago, and products currently manufactured by Solahart include thermosiphon and split system solar and heat pump water heaters. These are marketed in 70 countries around the world and overseas sales represent 40% of total business. Solahart enjoys a market share of 50% in Australia.[28]

Solar Systems

Solar Systems is a leader in high concentration solar photovoltaic applications,[29] [30] and the company is preparing to build the world's largest photovoltaic Solar power station in Victoria, Australia.[31] [32] This project will use innovative concentrator dish technology.

Solar Systems has already completed construction of three concentrator dish power stations in the Northern Territory, which together generate 720kW and 1,555,000 kWh per year. This represents a saving of 420,000 litres of diesel fuel and 1550 tonnes of greenhouse gas emissions.[33]

Wind Prospect

Wind Prospect developed the 46 MW Canunda Wind Farm in South Australia, which was commissioned in March 2005. A second South Australian wind farm, Mt Millar Wind Farm, was commissioned in January 2006 and this provides a further 70 MW of generation. More recently, a third wind farm has reached financial close for Wind Prospect in South Australia. This is the 95 MW Hallett Wind Farm which is expected to be fully commissioned late in 2008.

Government policy

Subsidies for fossil fuels

At present, governments in Australia provide substantial financial support for the production and use of fossil fuels, through direct payments, favourable tax treatment and other actions. These subsidies keep the cost of fossil fuel energy artificially low and make it harder for renewable energy to compete. They distort energy markets, encourage greater use of fossil fuels, create higher levels of greenhouse gas emissions and improve the profitability of energy companies that produce or use fossil fuels. In an era when climate change response has become urgent, continuing to subsidise fossil fuel production and consumption is unacceptable.

Politics of global warming

Australia is the highest emitter "per capita" of greenhouse gases in the developed world,[34] and it is one of the major exporters of coal, the burning of which causes CO2. Australia is also one of the countries most at risk from climate change according to the Stern report. Renewable energy technologies provide opportunities for mitigating greenhouse gases.[3]

Australia has not ratified the Kyoto Protocol, due to concerns over a loss of competitiveness with the US, which also rejects the treaty.[35] Some business groups have lobbied the Australian government to prevent Australia from reducing greenhouse gas emissions[36] and these include the coal, oil, cement, aluminium, mining and electricity industries.[37]

On 3 February 2007, the Australian government announced that it will not be pursuing mitigation of global warming, and instead will be adopting a policy of adaptation.[38]

Renewable energy programmes

The Australian Greenhouse Office has responsibility for delivering several of renewable energy programmes. It has policy responsibility for some financial incentives for the production and use of renewable energy, and for the Mandatory Renewable Energy Target (MRET) which requires an additional 9,500 GWh of electricity to be produced from renewable sources by the year 2010:[39]

"The legislation behind MRET, the Renewable Energy (Electricity) Act 2000, came into effect on 1 April 2001 and requires electricity retailers and major electricity users to purchase a specified percentage of their electricity from renewable energy generators. These parties must acquire Renewable Energy Certificates (RECs) which demonstrate that they have sourced power from renewable energy generators. Each REC represents one megawatt hour of electricity. If an electricity retailer or major user hasn’t acquired enough RECs to meet their annual target under the legislation, they must pay a $40/MWh penalty."[40]

Other Australian Government support for business, including renewable energy businesses, is delivered by the Department of Industry, Tourism and Resources.[39]

Despite the Tambling review, the Australian government has decided not to extend the Mandatory Renewable Energy Targets Scheme.[41] However, various state Labor governments have recently announced their own renewable energy target schemes.[42][43][44]

Politics of wind power

From 2001 to early 2006, the main driving force for the establishment of wind farms in Australia was the Government's Mandatory Renewable Energy Target.[45][46] However, by mid-2006, sufficient renewable energy had been installed or was under construction to meet the small MRET target for 2010. Also, in 2006, several Federal Government Ministers spoke out against several wind farm proposals.[46]

Leaked minutes from a 2004 meeting between leaders of energy intensive industries and the Australian government describe how both groups were worried that mandatory renewable energy targets were working too well and were "market skewed" towards wind power.[47]

Dr Mark Diesendorf has suggested that the Australian Government has tried to stop the development of wind power, the lowest-cost, new, renewable electricity source, until such time as coal-fired power stations with CO2 capture and sequestration and possibly nuclear power stations are available.[48]

Public opinion

Survey results suggest that there is considerable public support for the use of renewable energy and energy efficiency in Australia. In one recent survey, 74% of respondents favoured a "greenhouse strategy based mainly on energy efficiency and renewable energy, and 19% favoured an "approach that focuses mainly on nuclear power and clean coal technologies."[49]

The Australian results from the 1st Annual World Environment Review were based on a survey of 1,007 Australian men and women. They were published on 5 June 2007, and these are the main findings pertaining to renewable energy and energy efficiency:[50]

  • Eighty six per cent of Australians polled are concerned about climate change. Twelve per cent are not concerned (40% are very concerned and 46% are fairly concerned).
  • Eighty eight per cent of Australians think that the Government should do more to increase the use of solar power. Seventy eight per cent say the government should do more to boost wind power, 58% hydro power, 50% tidal power, and 38% geothermal power. (Despite the push from the Federal Government on the nuclear power issue, nuclear power is the least popular alternative. Only 25% think that the Government should do more to increase its use).
  • Eighty four per cent of Australians surveyed think that the Australian Government should make it easier for people to buy renewable electricity.
  • Eighty nine per cent think that all electricity should contain a minimum 25% of power generated from renewable energy sources, such as wind and solar power. Only 3% disagree.
  • Eighty two per cent think that the Australian Government should make it easier for people to buy solar panels.
  • Eighty per cent think that the Australian Government should make it easier for people to buy energy efficient products, such as energy-saving light globes, water-saving shower heads and insulation etc.
  • Eighty five per cent of Australians surveyed think that the Government should raise national fuel efficiency standards for cars and light trucks.
  • Eighty seven per cent think that the Government should do more to increase the number of cars that don’t use petrol.

Future prospects

Several recent reports have discussed the possibility of Australia setting a renewable energy target of 25 per cent by 2020.[51][52] Combined with some basic energy efficiency measures, such a target could deliver 15,000 MW new renewable power capacity, $33 billion in new investment, 16,600 new jobs, and 69 million tonnes reduction in electricity sector greenhouse gas emissions.[52]

See also

Further reading

References

  1. ^ a b How solar ran out of puff Sydney Morning Herald, 17 April 2007.
  2. ^ Australian Government, Office of the Renewable Energy Regulator
  3. ^ a b International Energy Agency (2007). Renewables in global energy supply: An IEA facts sheet, OECD, 34 pages.
  4. ^ Global Wind Energy Council, Global wind energy markets continue to boom – 2006 another record year
  5. ^ a b Australia advances with solar power The Times, 26 October 2006.
  6. ^ a b c d Big energy role for central Australia’s hot rocks Mineweb, 2 May 2007.
  7. ^ Australians Reject Nuclear Energy Angus Reid Global Monitor, 25 June 2007.
  8. ^ Australian Greenhouse Office, National code for wind farms: A discussion paper May 2006.
  9. ^ Wind not the answer to our needs The Age, 30 December 2005.
  10. ^ Australian Greenhouse Office, National code for wind farms: A discussion paper May 2006, p. 7.
  11. ^ a b Australian Business Council for Sustainable Energy. The Australian Photovoltaic Industry Roadmap p. 1.
  12. ^ Solar Systems. Solar systems projects
  13. ^ a b Solar Systems. Solar systems facts sheet: the technology
  14. ^ Solar Systems. World-leading Australian solar technology for export under AP6
  15. ^ Australian National University, Centre for Sustainable energy systems
  16. ^ Super-skinny solar cells soak up the sun News in Science, 6 December 2006.
  17. ^ Origin Energy. SLIVER technology facts sheet
  18. ^ Lovegrove, Keith and Dennis, Mike. Solar thermal energy systems in Australia International Journal of Environmental Studies, Vol. 63, No. 6, December 2006, p. 791.
  19. ^ Lovegrove, Keith and Dennis, Mike. Solar thermal energy systems in Australia International Journal of Environmental Studies, Vol. 63, No. 6, December 2006, p. 793.
  20. ^ a b c Lovegrove, Keith and Dennis, Mike. Solar thermal energy systems in Australia International Journal of Environmental Studies, Vol. 63, No. 6, December 2006, p. 797.
  21. ^ Cloncurry to run on solar power: Bligh
  22. ^ Australian town to run on solar power in 2 years
  23. ^ Scientists get hot rocks off over green nuclear power Sydney Morning Herald, 12 April 2007.
  24. ^ a b Queensland Government. Ethanol case studies
  25. ^ Solar Power Profitability: BP Solar Environmental News Network, 25 May 2005.
  26. ^ Origin Energy. SLIVER technology facts sheet
  27. ^ Geodynamics. Geodynamics: Power from the earth
  28. ^ Solahart Industries
  29. ^ Solar Systems.Solar Systems wins National Engineering Excellence award
  30. ^ Solar technologies reaching new levels of efficiencies in Central Australia ABC Radio Australia, 12 November 2006.
  31. ^ Solar Systems to Build A$420 million, 154MW Solar Power Plant in Australia
  32. ^ Solar Systems. Solar Systems home page
  33. ^ Solar Systems. Solar systems projects
  34. ^ Climate Action Network Australia. Global Warming: The Facts
  35. ^ Australian Government (2004). Securing Australia's Energy Future
  36. ^ The Greenhouse Mafia Four Corners, 13 February 2006.
  37. ^ The Dirty Politics of Climate Change The Australia Institute, 20 February 2006.
  38. ^ Australia 'must adapt' to global warming ABC News, 3 February 2007.
  39. ^ a b Australian Government. Australian Greenhouse Office: Government programmes
  40. ^ Greenhouse response actions
  41. ^ Allens Arthur Robinson, Federal Government Energy White Paper
  42. ^ NSW announces renewable energy targets ABC News, 9 November 2006.
  43. ^ Climate Change and Greenhouse Emissions Reduction Act 2007
  44. ^ Earth, Wind & Fire Four Corners, 16 April 2007.
  45. ^ Lovegrove, Keith. Election 2004: The Government’s non policy on energy Australian Review of Public Affairs, 10 September 2004.
  46. ^ a b Diesendorf, Mark (2007). Greenhouse Solutions with Sustainable Energy, UNSW Press, p. 107.
  47. ^ Minutes of a meeting of the Low Emissions Technology Advisory Group (LETAG) with the Australian Government 6 May 2006.
  48. ^ Diesendorf, Mark (2007). Greenhouse Solutions with Sustainable Energy, UNSW Press, p. 109.
  49. ^ Australians Reject Nuclear Energy Angus Reid Global Monitor, 25 June 2007.
  50. ^ First Annual World Environment Review Poll Reveals Countries Want Governments to Take Strong Action on Climate Change Global Market Insite, 5 June 2007.
  51. ^ CSIRO (2007). Rural Australia Providing Climate Solutions p.1
  52. ^ a b Australian Conservation Foundation (2007). A Bright Future: 25% Renewable Energy for Australia by 2020

External links

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