Day 250: 'Fix the political issues'
An introductory weekday newsletter from Schwartz Media. Counting the days since Australia had an energy policy.
Good morning and welcome to day 250.
Today in summary: Bill Shorten says a joint working group on climate policy with the Greens is off the table; China may be closer to loosening its restrictions on Australian coal imports; and renewable energy projects are becoming less financially appealing for investors.
— Sophie
Today’s policy spin level: 💨💨🌪️
Please don’t keep Australian Energy Daily to yourself. Forward this email to your colleagues and encourage them to sign up for free here.
Bill Shorten says Labor will not work with the Greens on a joint climate policy if elected next month, the Guardian reports. Shorten told the Guardian that he won’t use the same process as Julia Gillard did in setting up a multi-party committee on climate change and:
“The Greens really stuffed up climate change in the 43rd parliament by their terms. I’m not going to sign up to a deal that damages our chances to deliver [enduring action] on climate change.
That doesn’t mean I won’t listen, or I won’t talk to the Greens, I’ll talk to all parties in the Senate and I’ll talk to the opposition if we get elected.”
Research from Macquarie Bank says that China boosting its domestic thermal coal industry could mean restrictions on Australian coal imports might be lifted, the SMH reports. It says an anonymous mining industry source told the SMH that:
“Conversations we're having suggest these restrictions might start to relax by the end of May.
If the political issues are fixed Australian coal imports will likely be around the same levels [as in 2017 and 2018], if Australia doesn't fix the political issues then someone else will profit from our pain.”
Renewable energy is becoming so cheap that the value of projects is being slashed and long-term contract prices are dropping, the ABC reports. The investment boom may push supply to outstrip demand by 2021, the ABC reports, and it quotes Green Energy Markets director Tristen Edis as saying:
“We can have lower power prices, but for them to be sustained we need a policy framework in place that allows us to steadily build replacement capacity in advance of coal plants retiring.”
On a micro scale, the ABC reports that a pause in Victoria’s rebate program for solar panels is causing problems for installer businesses. The rebates for the current financial year are already fully subscribed, with 10,000 rebates already paid and a further 30,000 submitted, and new applications are frozen until July 1st when the new, larger rebate program will be rolled out, the ABC reports.
The Commentariat
In the AFR, the Grattan Institute’s energy program director Tony Wood sets out a plan for the next government’s energy policy.
“Australian businesses and voters are looking to the Commonwealth government for action on climate change. Yet they are also looking for reassurance on energy reliability and prices. Ultimately, these three objectives are best achieved through investment under a clear market and policy framework, rather than ad hoc political intervention.”
Three more things
Australia’s nickel mine owners could benefit from global demand for responsibly-sourced cobalt for electric vehicles, the Australian reports. Global carmakers are avoiding cobalt from the Democratic Republic of the Congo, with BMW this week announcing it will source the metal for its next generation of vehicles from Australia or Morocco.
Equinor’s planned oil exploration in the Great Australian Bight is coming under pressure from investors who are aligning with environmental groups, the AFR reports. The Climate Action 100+ group has pushed Equinor to assess its planned exploration against its stated support for the Paris climate accord, the paper reports.
Butchers want a “more comprehensive small business energy blueprint” from the next government, the SMH reports. It quotes New South Wales butcher Robert Constable as saying energy bills in his stores have doubled in the past five years to A$500 per week, and he wants retailers and the government to look at time in use tariffs.