Energy policy of Australia

The Energy policy of Australia is subject to regulation by all 3 levels of Government, but particularly the State and Federal Governments. The coal industry is the main driver in the formulation of energy policy at both State and Federal government levels.

Australia is the highest emitter of greenhouse gases per capita in the developed world. It is one of the major exporters of coal, the burning of which creates CO₂. It is also one of the countries most at risk from climate change according to the Stern report. This is partially because of the size of its agriculture sector and long coastline.

Renewable energy commercialisation in Australia is an area of significant activity. Australia's renewable energy industries are diverse, covering numerous energy sources and scales of operation, and they currently contribute about 5.9% of Australia's total energy supply. The major area where renewable energy is set to grow is in electricity generation following the introduction of the Australian Government's Mandatory Renewable Energy Target.[1]

Federal Government

In the 2004 White Paper Securing Australia's Energy Future, a number of initiatives were announced to achieve the Australian Government’s energy objectives. These include:

• a complete overhaul of the fuel excise system to remove $1.5 billion in excise liability from businesses and households in the period to 2012–13
• the establishment of a $500 million fund to leverage more than $1 billion in private investment to develop and demonstrate low-emission technologies
• a strong emphasis on the urgency and importance of continued energy market reform
• the provision of $75 million for Solar Cities trials in urban areas to demonstrate a new energy scenario, bringing together the benefits of solar energy, energy efficiency and vibrant energy markets
• the provision of $134 million to remove impediments to the commercial development of renewable technologies
• incentives for petroleum exploration in frontier offshore areas as announced in the 2004-05 budget
• new requirements for business to manage their emissions wisely
• a requirement that larger energy users undertake, and report publicly on, regular assessments to identify energy efficiency opportunities.

State policies

NSW

GOVERNMENT ENERGY MANAGEMENT POLICY

Reducing Greenhouse Emissions from Government Operations

The NSW Government is committed to lower and sustainable levels of energy use and greenhouse gas emissions in its own operations, reaffirming its focus on the twin goals of better financial performance and improved environmental outcomes.

Australia, as a signatory to the Kyoto Protocol to the United Nations Framework Convention on Climate Change, undertakes to limit its overall greenhouse gas emissions to no more than 8% above 1990 levels by 2008-12. Energy use contributes more than 50% of Australia’s greenhouse gas emissions. Clearly, the efficient use of energy must be central to any greenhouse gas abatement strategy, and indeed underpins the National Greenhouse Strategy.

Energy management is a key to improving efficiency, reducing energy use and abating greenhouse gas emissions. The reduction in recurrent expenditure, through the NSW public sector embracing energy management, also makes good economic sense; and as a part of total asset management and the strategic framework for procurement, it helps towards more cost-effective service delivery.

WITH THIS POLICY, the Government is committed to achieve and sustain reduced greenhouse gas emissions and significant energy cost savings in a coordinated and comprehensive manner across the NSW public sector. Reduced energy consumption, greater use of "green" energy technologies, and buying energy economically are all integral to this objective.

Through this Policy, the Government leads by example, and plays a vital part in growing a vibrant energy services industry in NSW.

Government has taken initiative to take steps in its own back yard by announcing to reduce the statewide total energy consumption of government buildings, where cost-effectively feasible, by:

   * 15% of the 1995 level by 2001
   * 25% of the 1995 level by 2005.

This Policy covers all energy use in NSW public sector agencies, including:

   * Buildings
   * Infrastructure
   * Transport and motor vehicles
   * Plant and equipment
   * Goods and services.

In order to achieve and report on the outcomes for the whole NSW public sector:

   * The Policy is mandatory for all general government sector agencies
   * Public trading enterprises are encouraged to adopt the principles of the Policy as an integral part of their business, thereby contributing to NSW’s broad environmental outcomes while pursuing good business practice.

NSW public sector agencies spend an estimated $480 million in energy use annually. Of this total, government buildings account for an estimated $180 million.

In terms of greenhouse gas emissions, the NSW public sector energy use is estimated to contribute over 4 million tonnes of carbon dioxide annually. Government buildings account for an estimated 2 million tonnes of this emission level.

Putting potential benefits into perspective, the reduction goal set for government buildings alone translates to:

   * By 2001:
   * Up to $30 million savings a year
   * Over 300,000 tonnes less carbon dioxide emitted a year
   * By 2005:
   * Up to $50 million savings a year
   * Over 500,000 tonnes less carbon dioxide emitted a year.

There are also considerable financial benefits flowing from the introduction of market-based competition in the energy sector. The electricity sector led the way in deregulation, with gas reform following progressively. Under market conditions, combined purchasing of energy by government agencies offers the potential to deliver cost savings additional to those from reducing energy consumption.

Another benefit of the combined energy purchasing arrangements is the stimulus it adds to the renewable energy market by buying a portion of electricity as Green Power.

Strategies

The strategies to fulfill the Government’s commitment are based on a simple philosophy balancing voluntary actions, best practice guidelines and a minimum of mandatory requirements.

The four key strategies are:

1. Long-term framework to ensure ongoing energy management and intrinsically energy-efficient new assets. It provides the assurance that the gains achieved are maintained by the agencies thereafter and not eroded with time.The framework includes:

• specific responsibilities and obligations for agencies
• making each agency, through its chief executive and energy manager, accountable for managing its energy use in accordance with this Policy
• setting goals, monitoring performance and reporting against these goals
• the government energy and greenhouse gas database, as an objective means to measure outcomes
• best practice energy management guidelines
• sustainable energy guidelines for new assets
• procurement and purchasing guidelines to ensure agencies achieve objectives of this Policy.

1. Voluntary programs and initiatives to encourage agencies through incentives and assistance. These programs generally have specifically focused outcomes, features over and above the minimum requirements of the long-term framework, and a finite life. The Sustainable Energy Development Authority’s (SEDA) Energy Smart Government Buildings is the first of such programs which complement and enhance the long-term-framework.
2.Tools and facilitation methods, such as energy performance contracting, streamlined financing, training and resource kits, which are designed to overcome barriers to achieving energy efficiency.

One such tool, energy performance contracting, provides guaranteed energy efficiency outcomes, including a guaranteed level of savings. It thereby dispels barriers, such as, uncertainty and enables capital improvements to be funded from the guaranteed consequent savings. Energy performance contracting was launched by Department of Public Works and Services (DPWS) in July 1997, with support of SEDA and Treasury.

This strategy includes appropriate systems and guidelines to enable all agencies to use such tools.

As a minimum goal, each agency shall set its own targets aligned with the overall Government targets, including those already announced and reinforced in the Policy Statement. Each agency should aim to better the Government targets, as better outcomes mean greater benefits to the agency.

Other agency goals may include the following: The department will collate agencies’ energy consumption and greenhouse gas emissions by establishing and managing the government energy and greenhouse gas database.

Government Energy management policy details can be seen on http://www.deus.nsw.gov.au/energy/Government%20Programs/ Government%20Energy%20Management%20Policy /GEMP%20-%20Reducing%20Greenhouse%20Emissions%20from%20Government%20Operations.pdf

New South Wales Greenhouse Gas Abatement Scheme

New South Wales Greenhouse Gas Abatement Scheme (GGAS) extended - 25 October 2006

Under the amended bill, the NSW Greenhouse Gas Abatement Scheme will end after 31 December 2012. The Electricity Supply Amendment (Greenhouse Gas Abatement Scheme) Bill (2006) proposes to extend the operation of the scheme from 2012 to 2021 and beyond.

What does it mean for you? Many investors are taking back step due to the fact that GGAS will expire by 31st December 2012. But due to the new amendment bill investors in the field of Wind farms, biomass plants and research and development into other kinds of renewable energy and clean coal technology can think about investing and take the advantage of pricing.

The details of the penalty and the commitment of the NSW towards new national emission trading techniques can be browsed through http://www.mallesons.com/publications/2006/Oct/8656628W.htm

Victoria

The sustainable, secure, reliable and affordable supply of energy is a critical policy focus for the Victorian Government.The main objectives of of the policy are:

1. Ensure an efficient and secure energy system.

This requires ongoing investment in the supply of energy and the efficient use of those supplies, which are needed for the the state’s economic and social well being at an affordable cost.

2. Ensure those supplies are delivered reliably and safely.

The reliable distribution of energy is an ongoing challenge, particularly for electricity, which cannot be stored on a significant scale. Fossil fuels and electricity are inherently hazardous, so they must be distributed and used safely.

3. Ensure consumers can access energy at affordable prices.

The Government is committed to ensuring that all consumers, especially low-income earners, can access essential energy services at affordable prices.

4. Ensuring that energy supplied and usage of energy are in harmony with environmentally sustainable and in particular less greenhouse intensive.

Achieving sustainability is a key challenge for Victoria.Victoria generates most of the low cost electricity from brown coal, which brings major economic benefits for the state but it contributes about half of the greenhouse gas emissions. Governemnt has to find ways to ensure mix of energy sources renewable and non renewable and its utilisation to the minimum such that it will reduce the damage to the environment and economy and in particular reduce the intensity of the greenhouse emissions.

The Energy Efficiency for Victoria Action Plan sets out a comprehensive program of Government action to drive improvements in energy efficiency and greenhouse gas abatement. It also establishes the context for action - detailing where Victoria stands today and the opportunities and challenges with respect to energy efficiency - and outlines the Government's broad objectives and strategies.

Victoria’s energy efficiency objectives

Economy-wide improvements in energy efficiency are required to: 1) reduce Victoria’s greenhouse gas emissions and help prepare the State for a carbon-constrained future;

2) enhance Victoria’s energy supply security and reduce the need for increases in supply capacity;

3) reduce total energy costs for Victorian households and businesses.

Government has come out with strategy to

1.Inform and motivate consumers to change behaviour and make energy efficient choices

2.Energy efficiency design standards for new homes and commercial buildings.

3. Minimum energy performance standards (MEPS) for key appliances and equipment.

4.Benchmarking the energy efficiency of key sectors to stimulate uptake of best practice.

Queensland

Queensland provides some of the cheapest electricity in the world, but large energy consumers are now seeking a competitive supply of energy that also minimises greenhouse emissions. At the same time, large volumes of gas at competitive prices are not currently available in Queensland.

Currently, coal generates nearly all of Queensland’s power supply. Coal is the fuel source for around 97 per cent of the electricity generated in Queensland. Coal will continue to have a prominent role in an energy supply.

The Queensland Energy Policy is aimed at ensuring that adequate, reliable and competitively priced energy is available to users throughout Queensland.

The Queensland Government’s objectives are to:

• move towards greater use of gas and renewables;
• supply of abundant and competitively priced gas in Queensland;
• reduction in the growth of greenhouse gases.

The Cleaner Energy Strategy is estimated to reduce greenhouse gas emissions by more than 30 million tonnes over ten years which is equivalent to removing the greenhouse gas emissions of around one million cars.

To help reduce the greenhouse intensity of Queensland’s energy,Government has come out with strategy that

• Electricity retailers that operate in Queensland should source 15 per cent of their electricity sales either from gas or renewable sources;
• To assist the coal industry to capture and use waste mine gas; and
• Promoting investment in forests as a way of offsetting greenhouse gas emissions

Investment in Forests: Under the Hardwood Plantation Program the Queensland Government will provide $18 million to establish 5,000 hectares of hardwood plantations to facilitate the transition of the timber industry out of Crown native forests into plantations.

Waste Mine Gas Abatement: As Queensland has more mining activity, methane escaping from coal mines is twenty times more damaging to the atmosphere than carbon dioxide. Capturing this waste gas and using it in electricity generation or other use yields a substantial greenhouse dividends. The Government will set a target to reduce waste gas emissions from coal mines by 2.5 million tonnes of carbon dioxide equivalent over four years (leading to 10 million tonnes of saving by 2012)

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South Australia

The South Australian Government has developed a Energy policy based on sustainability objective as well as on South Australia's Strategic Plan.

The Energy Division of South Australia is contributing to the development of policies that will assist in meeting energy requirements of South Australians while reducing greenhouse gas emissions and ensuring a sustainable future for all South Australians.

The Government of South Australia has recognised the importance of tackling climate change.

A major priority of South Australia’s Strategic Plan is to reduce greenhouse gas emissions in South Australia to achieve the Kyoto target as a first step towards reducing emissions by 60% (to 40% of 1990 levels) by 2050.

The Climate change and Green house Reduction bill was introduced on 6 December 2006. The Bill sets out three targets:

• To reduce greenhouse gas emissions in the State by at least 60 per cent of 1990 levels by the end of 2050
• To increase renewable electricity generated so it makes up at least 20 per cent of electricity generated in the State by the end of 2014
• To increase renewable electricity used so that it makes up at least 20 per cent of electricity used in the State by the end of 2014.

South Australia is participating in the National Emissions Trading Taskforce, established by Australian State and Territory Governments, to develop a multi-jurisdictional emissions trading scheme. A national trading system would create the conditions in which market forces are harnessed to drive reductions in Australia’s greenhouse gas emissions in the most cost-effective way.

South Australia is working in partnership with the other State, Territory and Commonwealth Governments, through the Ministerial Council on Energy (MCE), to increase the use of energy efficiency, and to support renewable and distributed generation.

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Western Australia

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Tasmania

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Northern Territory

The Northern Territory is energy rich but has no economic coal reserves like New South Wales, Victoria, Western Australia. It has natural gas, some oil and significant potential for renewable energy resources.

The Department of Primary Industry, Fisheries and Mines coordinated the development of a draft Northern Territory Energy Policy.

The Policy is designed to ensure that adequate, reliable and competitively priced is available to encourage the development of industry in the Northern Territory and to improve the lifestyles of Territorians. An Action Plan to achieve the Policy objectives is currently being developed.

Australian Capital Territory

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Fuels

Coal

Main article: Coal Mining in Australia

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Oil - Petrol

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Oil - Diesel

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Natural Gas

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Town Gas

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Hydro Electric Power

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Wind Power

See Wind power in Australia, Wind power in South Australia

Wind power in Australia is clean and renewable and a typical wind turbine can meet the energy needs of up to 1000 homes. The technology is proven, fast to build and economical compared with other renewable energy technologies.

Australia is the highest emitter of greenhouse gases per capita in the developed world and Wind power is well placed to grow and deliver greenhouse gas emission cuts on a cost competitive basis. A typical 50 megawatt (MW) wind farm in Australia can reduce greenhouse gas emissions by between 65,000 and 115,000 tonnes a year.

Solar Power

See Solar power in Australia, Solar power station in Victoria, Photovoltaic and renewable energy engineering in Australia

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Nuclear Power

Jervis Bay Nuclear Power Plant was a proposed nuclear power reactor in the Jervis Bay Territory on the south coast of New South Wales. It would have been Australia's first nuclear power plant, and was the only proposal to have received serious consideration as of 2005. Some environmental studies and site works were completed, and two rounds of tenders were called and evaluated, but the Australian government decided not to proceed with the project.

Queensland is introducing legislation and other states have indicated that they will ban nuclear power development in response to a sudden pro-nuclear position, by John Howard in 2006 , and the release of the Dr Ziggy Switkowski report into nuclear power.

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Energy Exports

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Energy Imports

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Energy Security

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See also

• Effects of global warming on Australia
• Energy policy
• List of active power stations in New South Wales
• List of active power stations in Queensland
• List of active power stations in South Australia
• List of active power stations in Tasmania
• List of active power stations in Victoria, Australia
• List of active power stations in Western Australia