Day 44: Jobs
An introductory weekday newsletter from Schwartz Media. Counting the days since Australia had an energy policy.
Good morning and welcome to day 44.
Today in summary: Victoria’s renewable energy boom has delivered thousands of jobs, but will largely benefit offshore companies, according to two new pieces of analysis; Tasmanian business leaders are meeting to discuss how they can gain from the state’s “Battery of the Nation” initiative as Hydro Tasmania’s dams run full; and Australia’s energy commodity exports are blowing away forecasts, according to an upcoming report from the federal Department of Energy.
— Charis
Today’s policy spin level: 💨💨💨💨
More than 5,000 construction jobs were created in the year to August from Victoria’s large-scale wind and solar projects, according to the latest Renewable Energy Index from renewable energy research and advisory firm Green Energy Markets. The analysis, funded by progressive lobby group GetUp, found Victoria had overtaken Queensland in renewable energy job creation, with 12 projects under construction and 28 with planning approval.
But there’s a downside to the renewables investments being made by the Andrews government, argue some, with foreign companies making up five of the six participating in Victoria’s reverse auction program. “Australian industry won’t get much of a benefit from this deal,” said Nathan Vass, a former AGL communications executive who now heads up clean coal lobby group Australian Power Project.“This will only help manufacturing jobs in China, Europe or the US where most wind turbine and solar panel manufacturers are based.”
A local content target of 64% has been set for the projects, and will be exceeded, according to Victorian Energy Minister Lily D’Ambrosio.
The Guardian | The AustralianTasmanian business leaders will meet up this week to discuss how they can benefit from the state’s Battery of the Nation initiative, along with Project Marinus, a proposed second Basslink cable connecting Tasmania to the NEM. Tasmanian Energy Minister Guy Barnett said business leaders would discuss how they can “prepare themselves to benefit from renewable energy sources and get involved with projects and contracts on the table”.
The discussions come as Tasmanian energy prices dropped to around half the level in other eastern states, thanks to Hydro Tasmania’s nearly-full dams. Tasmania generated 100% of its energy needs for the year to date from renewables.
Australian Financial ReviewThe federal Department of Industry will raise its forecast for commodity exports again, as exports of energy commodities like LNG, lithium and thermal coal surpass expectations. The department will release a new report today predicting LNG exports to rise by 55% in the two years to fiscal 2020, and thermal coal exports to peak in 2019. The Department also expects electric vehicle sales will rise from two million per year in 2017 to about 40 million per year by 2027. Australian Financial Review
Geopolitics
A human rights spat between the leaders of Saudi Arabia and Canada threatens to harm Canadian oil interests, writes Petroleum Economist’s Shaun Polczer. Saudi Arabia is Canada's biggest oil competitor in the US market, at a time when Canadian Prime Minister Justin Trudeau has been caught in verbal battles with US President Donald Trump.
“In one corner we have Saudi Arabia, the undisputed oil heavyweight of the world, at 11m barrels a day and the planet's largest oil exporter by far. In the other, we have Canada, a relative featherweight at 4m b/d—but an up and comer with arguably the second largest reserves.”
Three more things
The US midterm elections threaten to shakeup the US House Climate Caucus, a bipartisan group of 88 members, tasked with developing policy solutions to address climate change. Eight of the group’s Republican members are leaving congress, and another 19 in close political races. Climate activists aren’t worried, however, as they say the caucus has been ineffective and served largely as a political cover for those facing pressure from voters.
Politco
South Africa’s petroleum regulator has issued a moratorium on new applications for petroleum and exploration rights until further notice, as the government seeks to overhaul the existing licensing framework. The country’s licensing regime for petroleum and exploration has long been plagued by legislative uncertainty, which last year led to Shell relinquishing its offshore licence.
US energy company NantEnergy is developing a zinc-air battery which stores energy at a lower cost than other battery types currently on the market, including lithium-ion batteries. “Like lithium-ion, the potential applications for zinc-air batteries range from powering electric cars and also homes and businesses.” NantEnergy’s battery manufacturing facility is due to open in California next year.
This is an introductory service while we’re building a comprehensive daily paid online publication, coming in early 2019.
We’re not here to take sides, simply to cut through the noise, and help you make sense of the emerging policy and market trends you need to be across. We call it pure intel. You can read more about us here.