Day 94: 'Bravado into power bill results'
An introductory weekday newsletter from Schwartz Media. Counting the days since Australia had an energy policy.
Good morning and welcome to day 94.
Today in summary: Labor’s energy policy is expected to bypass Parliament to hasten the transition to renewables; CKI’s bid for APA is formally blocked, but it may look elsewhere for Australian investments; and a new study says NSW’s coal plants will kill thousands before they close, though industry disputes the conclusions.
— Sophie
Today’s policy spin level: 💨💨💨
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Federal Labor’s energy policy, to be announced by Bill Shorten at a speech on Thursday, continues to trickle out via Fairfax. The latest report is that a Shorten government is “expected to focus strongly on supporting investment in new renewable energy generation through means it can better control” which may involve changes that don’t need parliamentary assent.
“Mr Shorten’s office would not reveal details of what policy levers a Labor government would pull. However it may look to the Labor-held jurisdictions of Victoria, Queensland and the ACT, which plan to meet their ambitious renewable energy targets through reverse auction mechanisms to support generation from clean energy projects.”
Treasurer Josh Frydenberg has formally blocked CK Group’s bid for gas pipeline major APA Group, after his initial indication earlier this month. The door was left open for CKI to revise its offer, such as by partnering with an Australian company or divesting assets, but it didn’t do so.
Fairfax reported that possible opportunities for CKI now could be Spark Infrastructure, with which it jointly owns electricity distribution networks in SA and Victoria.
NSW’s five coal-fired power stations will kill thousands of people before they close, a new study has found, though industry rejects the results. The study, commissioned by Environmental Justice Australia and conducted by Dr Ben Ewald, a GP and public health lecturer at the University of Newcastle, concludes that 3,429 preventable deaths will occur before the last of the plants closes in 2042. NSW Health said its own research predicted fewer preventable deaths and the study needs further scrutiny.
The Commentariat
The Coalition’s energy strategy going into the election is “manifest government intervention”, a focus on prices, and convincing the Australian public that Labor’s 45% reduction target would be dangerous while its 26% target would not be, writes Paul Kelly in The Australian.
“The reality, however, is that significant price reductions for most customers before the election will be hard to deliver. When quizzed, Taylor says “an unambiguous focus” gets results and references the “stopping the boats” project of Morrison. Converting such bravado into power bill results will be daunting.”
The Sydney Morning Herald’s latest editorial says Monday’s Fairfax/Ipsos poll has underscored the importance of climate change and continued to put Labor ahead of the Coalition.
“The recalcitrant climate-change deniers that have prevented the Liberal Party formulating a coherent energy policy are handing the Opposition Leader an advantage; he is seen as responding better to widespread demand not only for reduced power prices, but for a transition sooner rather than later from reliance on fossil fuels to renewable energy.”
Three more things
A report from the NSW Department of Primary Industries has proposed three locations along the state’s North Coast for the development of wood-fired power stations. Wood fired power, also known as biomass, has been classified as a carbon-neutral renewable energy source by the EPA, but 130 organisations from 30 different countries have signed a statement opposing biomass for energy, chiefly on the grounds that large-scale removal of forests will lead to an in increase carbon-dioxide emissions.
US energy company Pacific Gas & Electric is facing tens of billions of dollars in liabilities following California’s wildfires, and Credit Suisse energy analysts are starting to wonder how the company’s possible bankruptcy would force a renegotiation of its renewable energy contracts. Investors can take some comfort in the fact that when PG&E last filed for bankruptcy in 2001, its power-purchase agreements with energy generators were upheld.
Google is looking to invest in Danish renewable energy projects, such as solar energy and onshore and offshore wind, as it announces plans to build a new US$700 million data centre in Denmark. The centre will be powered entirely by renewable energy.