Day 58: Getting behind the ACCC
An introductory weekday newsletter from Schwartz Media. Counting the days since Australia had an energy policy.
Good morning and welcome to day 58.
Today in summary: Coalition backbencher Craig Kelly said the government should axe current federal renewable energy subsidies; the industry’s Energy Charter gains momentum, but not everyone is on board; and ARENA partners with NSW and Victoria to fund an online renewables marketplace.
— Charis
Today’s policy spin level: 💨💨
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Craig Kelly, Coalition MP and chair of the government’s backbench energy committee, says federal renewable energy subsidies should be wound back. The comment puts Kelly in line with the competition regulator, which has recommended the small-scale renewable energy scheme (SRES) be abolished by 2021. Kelly told The Guardian:
“I think the ACCC report is correct and this scheme should be wound up in its entirety.”
Fifteen chief executives of Australian energy retailers have so far committed to a the voluntary Energy Charter that could see them go public on connection times and customer satisfaction levels. While majors AGL, Energy Australia, and Origin Energy are on board, Alinta is reportedly hedging its bets, throwing its support behind the competition regulator’s recommendations for improving the sector,
"We're working with the group to provide our input into the process."
"More generally our position on improving customers experience and outcomes is supporting the ACCC recommendations."
Snowy Hydro, Red Energy and Lumo are also yet to sign on to the Charter, which includes five principles focused on doing better by customers and more broadly delivering energy “reliably, safely and sustainably”.
The Australian Renewable Energy Agency has committed $500,000, which together with $300,000 from the Victorian and NSW state governments, will be used to create an online renewables marketplace for business customers.
The project will be led by Climate-KIC Australia, the World Wildlife Fund Australia and the University of Technology Sydney Institute for Sustainable Future. It aims to sell one gigawatt of renewable power by 2022.
Coming up
The House Committee on Economics will tomorrow hear from Japanese oil and gas company INPEX, as it continues it inquiry into impediments to business investment. INPEX has said the government should better support business through domestic “policy settings that are stable and competitive,” and that:
“Australia’s high cost business environment that reduces the country's international competitiveness’ is the ‘most significant challenge to the growth of Australia's natural gas industry.”
The Commentariat
Taxes on carbon have a greater likelihood of success if they are not called taxes, writes Axios’ Amy Harder.
“Proponents of an initiative on Washington state’s ballot this November that puts a price on carbon emissions call it a fee, and back it up by citing state law, which defines the difference between taxes and fees. A similar ballot initiative two years ago was officially called a tax — and that's one of the reasons it failed, according to people involved at the time.”
Generating power from coal is a 19th century industry, and Australian governments should not be defending it, said US economist Jeffrey Sachs on the ABC’s Q&A program last night.
“Make a plan, make a timeline, tell the world how you’re going to decarbonise, and then we’ll all be happy to hear from Australia that there’s really a plan. All we see is one PM after another falling over this issue.”
Three more things
French energy giant Total Eren has lost one of its anchor clients on its 200-megawatt Kiamal solar farm in Victoria, following delays caused by a standoff with AEMO over grid system security.
Australian Financial Review
Energy thirsty China will account for half of global LNG demand in 2018, according to a new forecast from energy research firm Wood Mackenzie. It also expects LNG demand in the Asia Pacific region will expand by 60% by 2030, requiring more export plants to come online.
Natural Gas Daily
Environmental campaigner ClientEarth is mounting a legal challenge to revoke a permit for two coal-fired power plants in Greece, one of which has yet to be constructed. The Greek branches of Greenpeace and the World Wildlife Fund are joining the action. According to ClientEarth lawyer Eleni Diamantopoulou:
“Greece’s power plants have an abysmal track record of shaky permitting, which consistently fails to protect its citizens and the environment from the harmful effects of burning lignite.”
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.