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Department of Climate Change, Energy, the Environment and Water
offshorerenewables@dcceew.gov.au
27 April 2023
Offshore renewable energy infrastructure area proposal: Pacific Ocean off Hunter Submission
To whom it may concern
Thank you for the opportunity to provide input to the Offshore renewable energy infrastructure area proposal: Pacific Ocean off Hunter.
The Clean Energy Association of Newcastle and Surrounds (CLEANaS) strongly supports the development of offshore renewable energy in Australia, and the designation of the Offshore Renewable Energy Area in the Pacific Ocean off the Hunter.
CLEANaS is the Clean Energy Association of Newcastle and Surrounds, a not-for-profit association formed in 2012 by a group of locals passionate about clean energy. CLEANaS is dedicated to driving the uptake of clean energy so that our region can transition from its current dependency on fossil fuels to a more competitive and sustainable local economy. We achieve this by working with our partners to demonstrate profitable community-led and community-owned clean energy projects; raise the profile of clean energy in the local economy through education and awareness raising; and by improving access to financing mechanisms and affordable technologies so that investment and activity grow. Our initiatives must deliver a win-win for local community investors, local enterprise and, of course, our environment.
CLEANaS is currently planning to build a 1MW Community Owned Solar Farm here in the Hunter near Scone.
As you are aware, Australia is in the middle of a renewable energy boom. This means cleaner and cheaper power, local economic development and more resilience in regional communities. Already, the renewable energy build-out is creating jobs across regional Australia. However, we are concerned that the Hunter and Central Coast might miss out on both the short and long term benefits that the mass investment and construction of solar, wind energy, and storage will bring.
The declaration of an offshore renewable energy infrastructure area off the Hunter and Central Coast is an amazing opportunity for the region.
The AEMO reported[1] offshore wind has great potential due to its high resource quality, lower social licence hurdles than onshore renewable energy, and reducing costs. New offshore wind projects have capacity factors of 40%-50% due to wind availability, and larger turbines.[2]Capacity factors are higher than Gas, Solar, and Onshore Wind, and close to the rapidly declining capacity factors for Coal.[3]
The Blue Economy Offshore Wind Energy Report found that the ongoing expansion of offshore wind to large 15 MW turbines can enable individual projects to have a capacity of 1-2 GW, which means that offshore wind can upscale rapidly as coal plants close and the energy transition accelerates.[4]
AEMO noted that the Hunter Coast offshore wind zone has good resource potential with:
- relatively shallow waters close to shore,
- a capacity of 10GW,
- a proximity to major load centres such as Sydney.
- existing strong transmission corridors of existing 330 kV lines, and
- a current network transmission limit of around 5.5 GW.
Newcastle, Hunter and Central Coast has a skilled workforce, significant electricity grid connections (e.g. Munmorah, Eraring, Kooragang Island) and substantial deep-water port infrastructure at Newcastle suitable for construction and maintenance of off-shore wind farms.
Climate ChangeThe impacts of climate change on the environment are significant and severe. The present scientific consensus is that the earth's climate is warming due to human activity (https://climate.nasa.gov/scientific-consensus/ ), and the negative impacts of increased greenhouse gas emissions are measurable globally and nationally.[5]
Australia has warmed faster than the global average and is on average 1.44 ± 0.24°C warmer than when national records began in 1910 with most of the warming occurring since 1950 with every decade since being warmer than the one before.[6] If compared to a pre-industrial (1850-1900) baseline, then by 2019 Australia had warmed by greater than 1.5°C.[7]
The government is responsible for the environment, the health and wellbeing of its citizens, and the financial security of the nation. As we see the impact of increased carbon emissions, we also find evidence of the impact on Australian native wildlife, the Australian people and the wealth of the nation as noted by the catastrophic Black Summer bushfires, crippling drought and more recently floods.
The urgency of the Climate Crisis indicates that we need to take full advantage of renewable resources where available, and the opportunity to build offshore renewable energy off the Hunter Coast. Therefore the construction of renewable energy within this region needs to be given priority over other uses in this area.
Amendments to the proposed areaPart of the proposed area is the edge of the continental shelf where depths exceed 200m deep where building wind turbines and undersea cabling is more difficult and expensive to construct. South of Norah Head is excluded because the area is used for military exercises as is anywhere within 46 km of Williamtown RAAF base. Note that the PEP-11 offshore gas permit did not appear to have these restrictions. Mitigation measures to reduce the exclusion zone for radar and airplanes should also be examined more closely.
In the North of the zone, the zone is close to islands off Port Stephens where Australia’s rarest endemic seabird the Gould’s Petrel nests.
We are not concerned about the visual impact of wind turbines, in fact, they are far more desirable in our eyes than the numerous coal ships currently dotting our local horizon, which are a constant reminder of our current fossil fuel dependence. However moving turbines 15 km from elevated and populated areas such as Norah Head, the Central Coast and the entrance to Port Stephens may help secure social licence and increase community confidence in the development of offshore renewable energy.
The Minister should look at all opportunities to expand the Area into waters that are less than 200m deep, while keeping the Area 15 km from shore and neighbouring islands.
Recommendations:
- The Hunter Offshore Renewable Energy Area is a critical area for renewable energy development, because of the available grid and port infrastructure, the location close to large electricity loads, and the quality of the wind resource. Given the urgency of the climate crisis, development of renewable energy projects must be given precedence over other uses of the Hunter offshore area.
- The outer 11 km x 82 km edge of the proposed Area is between 200m and 1,000m deep, which will increase the technical challenge and cost of offshore wind projects, and the cost of electricity. The Minister should look at all opportunities to expand the Area into waters that are less than 200m deep, while keeping the Area 15 km from shore and neighbouring islands.
- The area south of Norah Head and more than 10 km offshore is 70m-200m deep and close to grid connection points, but has been excluded because Defence has said that they use it for military exercises. Defence should be encouraged to carry out exercises on other parts of the coast. The proposed Renewable Energy Area should be expanded approximately 30 km south towards the mouth of the Hawkesbury, while keeping the zone a minimum of 15 km from shore in consideration of the higher elevation areas at Norah Head and Toowoon Bay. We note that this area is already covered by the PEP11 petroleum exploration permit.
- The proposed 46km/25 nautical mile exclusion zone for the RAAF Williamtown base removes a significant portion of potential Area that is between 100-140m deep, and close to grid connection points. Mitigation measures for radar and planes used in other countries should be implemented to expand the proposed Area for renewable energy development to the west, to a minimum of 15km offshore.
- Petroleum Exploration Permit 11 (PEP11) covers a significant portion of the proposed Renewable Energy Area, and adjacent areas to the south and west. PEP11 should be cancelled, and the existing gas exploration well securely and permanently capped so it does not interfere with renewable energy development.
- The Renewable Energy Area should be a minimum of 5 km from marine habitat protection zones in the Port Stephens – Great Lakes Marine Park and Hunter Marine Park.
- The Renewable Energy Area should be a minimum of 15 km from Tomaree mountain at the entrance to Port Stephens Bay, as this is a higher elevation lookout area.
- The Renewable Energy Area should be a minimum of 15 km from the nesting grounds of the Gould’s Petrel (Cabbage Tree Island, Boondelbah Island, Broughton Island, Little Broughton Island, and Montague Island) which are approximately 5 km from Tomaree Headland.
- Recreational fishers should be allowed to fish within the boundaries of offshore wind farms (as is the case in the USA and UK).
- Federal government should work with state and local governments to establish streamlined and effective development and approval processes for offshore wind development. This should include undertaking strategic planning (continuing what this consultation has started) in advance of, and paving the way for efficient project development.
- The Federal government should set a National Offshore Wind Target to demonstrate to the international community that we are serious about developing offshore wind and a strong local capability and industry.
- The government must coordinate the development of transmission infrastructure from the grid to a shared connection point at an offshore substation to facilitate accelerated development of offshore wind. Projects in the Area should be required to cooperate on the use of shared infrastructure with an appropriate mechanism to allocate costs, risks, ownership, and control.
- The government must coordinate the development of transmission infrastructure from the grid to a shared connection point at an offshore substation to facilitate accelerated development of offshore wind. Projects in the Area should be required to cooperate on the use of shared infrastructure with an appropriate mechanism to allocate costs, risks, ownership, and control.
- The Declaration should require that all licences issued in the area maximise the contribution of the project to the Australian economy and local communities, including:
- maximise the use of locally produced and supplied goods and services
- maximise the employment of suitably qualified local workers
- provide for training and skills development of local workers, minimum requirements for trainees and apprentices, worker transition opportunities from industries facing closure, and the employment of workers from groups underrepresented in the workforce
- increase employment and income opportunities for First Nations
Thank you for considering our submission,
Sincerely,
Alec Roberts
CLEANaS Chair
on behalf of CLEANaS
[1] AEMO (2022). 2022 Integrated System Plan - For the National Electricity Market. Retrieved from https://aemo.com.au/en/energy-systems/major-publications/integrated-system-plan-isp/2022-integrated-system-plan-isp
[2] IEA (2019). Offshore Wind Outlook 2019. Retrieved from https://www.iea.org/reports/offshore-wind-outlook-2019
[3] Robertson, B. and Mousavian, M. (2021) Australia’s Gas-fired Recovery Under Scrutiny. Retrieved from https://ieefa.org/resources/australias-gas-fired-recovery-under-scrutiny
[4] Clayton Utz (2022.) Australian offshore wind guide 2.0. Retrieved from https://www.claytonutz.com/knowledge/2022/september/australian-offshore-wind-guide-2-0
[5] NASA (n.d.). Scientific Consensus: Earth's Climate is Warming. Retrieved from https://climate.nasa.gov/scientific-consensus
[6] BOM & CSIRO. (2020). State of the climate 2020. Retrieved from https://www.csiro.au/en/research/environmental-impacts/climate-change/State-of-the-Climate.
[7] Steffen, W & Bradshaw, S (2021). Hitting Home: The Compounding Costs of Climate Inaction. Retrieved from https://www.climatecouncil.org.au/resources/hitting-home-compounding-costs-climate-inaction/.
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House Standing Committee on the Energy and Environment
Committee Secretariat
PO Box 6021
Parliament House
Canberra ACT 2600
Environment.Reps@aph.gov.au
Climate Change (National Framework for Adaptation and Mitigation) Bill 2020 and Climate Change (National Framework for Adaptation and Mitigation) (Consequential and Transitional Provisions) Bill 2020
To the House Standing Committee on the Energy and Environment regarding the Climate Change (National Framework for Adaptation and Mitigation) Bill 2020 and Climate Change (National Framework for Adaptation and Mitigation) (Consequential and Transitional Provisions) Bill 2020
Dear Committee Secretariat,
Thank you for the opportunity to provide a submission into the Climate Change (National Framework for Adaptation and Mitigation) Bill 2020 and Climate Change (National Framework for Adaptation and Mitigation) (Consequential and Transitional Provisions) Bill 2020 (Climate Change Bill 2020) and taking the time to consider our submission.
This is a submission supporting the Climate Change Bill 2020.
The government is responsible for the environment, the health and wellbeing of its citizens, and the financial security of the nation. As we see the impact of increased carbon emissions, we also find evidence of the deleterious impact on Australian native wildlife, the Australian people and the wealth of the nation. There is only 6-7 years left at present emission rates of the 2013-2050 emission budget to stay below 1.5°C. Therefore, at current emissions rates, Australia will have exceeded its carbon budget for 2050 by 2026. By 2055 Australia will experience economic losses on par with covid, getting worse every single year due to unchecked climate change.5
CLEANaS is the Clean Energy Association of Newcastle and Surrounds, a not-for-profit association formed in 2012 by a group of locals passionate about clean energy.[1] CLEANaS is dedicated to driving the uptake of clean energy so that our region can transition from its current dependency on fossil fuels to a more competitive and sustainable local economy. We achieve this by working with our partners to demonstrate profitable community-led and community-owned clean energy projects; raise the profile of clean energy in the local economy through education and awareness raising; and by improving access to financing mechanisms and affordable technologies so that investment and activity grow. Our initiatives must deliver a win-win for local community investors, local enterprise and, of course, our environment.
Climate Change ImpactsThe impacts of climate change on the environment are significant and severe. The present scientific consensus is that the earth's climate is warming due to human activity, and the negative impacts of increased greenhouse gas emissions are measurable globally and nationally.[2]
Australia’s climate has warmed on average by 1.44 ± 0.24 °C since national records began in 1910, which has led to an increase in the frequency of extreme heat events.[3] The Bureau of Meteorology and CSIRO reported that there has been an increase in extreme fire weather, and in the length of the fire season, across large parts of the country since the 1950s, as evidenced by the catastrophic bushfires in the summer of 2019/2020. They also noted changes in rainfall, with decreases in the southeast and southwest of Australia as shown by the devastating drought in 2019. Oceans around Australia they stated are acidifying and have warmed by about 1°C since 1910 bringing longer and more frequent marine heatwaves. In the past 5 years there have been three major mass-bleaching events at the Great Barrier Reef resulting from these marine heatwaves, and resulting in the destruction in over half of the reef’s corals.[4] The Great Barrier Reef has an economic, social and iconic asset value estimated at $56 billion, contributes around $6.4 billion annually to the Australian economy and supports over 64,000 jobs.[5] Sea levels are also rising around Australia, increasing the risk of coastal inundation and damage to infrastructure and communities.2
The government is responsible for the environment, the health and wellbeing of its citizens, and the financial security of the nation. As we see the impact of increased carbon emissions, we also find evidence of the deleterious impact on Australian native wildlife, the Australian people and the wealth of the nation.
Emission goals and carbon budgetsTo address the issue of dangerous climate change, Australia, along with 196 other parties, is a signatory to the Paris Agreement, which entered into force on 4 November 2016. The Paris Agreement aims to strengthen the global response to the threat of climate change, by:
Holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change.[6]
In 2016 Australia emitted 1.2% of world greenhouse gas emissions. This made Australia the world’s 14th biggest emitter of greenhouse gas pollution, despite having just 0.3% of world population. On a per capita basis. Australian emissions are the highest in the OECD and among the highest in the world. The only countries with higher per capita emissions than Australia are smaller petro-states like Kuwait, Qatar and UAE. [7] [8]
Australia has a very modest target to reduce emissions to 26-28% below 2005 levels by 2030. However, Australia is projected to fall short of even this unexceptional target with only a 16.5% reduction by 2030.[9]
The IPCC report provides an estimate for a global remaining carbon budget of 580 GtCO2 (excluding permafrost feedbacks) based on a 50% probability of limiting warming to 1.5 degrees relative to 1850 to 1900 during and beyond this century and a remaining carbon budget of 420 GtCO2 for a 67% chance. [10]
Committed emissions from existing and proposed energy infrastructure represent more than the entire carbon budget that remains if mean warming is to be limited to 1.5 °C and perhaps two-thirds of the remaining carbon budget if mean warming is to be limited to less than 2 °C. Estimates suggest that little or no new CO2-emitting infrastructure can be commissioned, and that existing infrastructure may need to be retired early (or be retrofitted with carbon capture and storage technology) in order to meet the Paris Agreement climate goals.[11]
From Jan 2017 until 2050 Australia’s remaining emission budget for a 50% chance of warming to stay below 1.5C warming relative to pre-industrial levels was estimated to be 5.5 GTCO2e.7 Adding the GHG emissions expended in 2017[12], 2018[13], and 2019[14], this leaves just 3.8 Gt CO2e remaining as at December 2019. This leaves 6-7 years left at present emission rates of the 2013-2050 emission budget to stay below 1.5°C. Therefore, at current emissions rates, Australia will have exceeded its carbon budget for 2050 by 2026.
Economic risksDeloitte Access Economics noted that some of the most significant risks to Australia’s economic growth trajectory are from the physical risks associated with a changing climate and the unplanned economic transition risk from the world’s response to this changing climate.16
Their analysis showed that the Australian industries hardest hit by the Covid 19 pandemic, would also be the most vulnerable to the effects of a warming world and climate change. Australia’s agriculture, construction, manufacturing, tourism related industries and mining sectors all featured consistently in the top industries exposed to the risks of covid, climate change and the unplanned economic transition as the world responds. Deloitte Access Economics estimated that by 2055 Australia will experience economic losses on par with Covid 19.16
This BillCLEANaS supports the passing of this Climate Change bill. This bill aims to ensure a clear and positive national response to the challenges of climate change through:
- A Net Zero emissions target by 2050
- Risk assessments and adaptation plans
- Technology readiness assessments
- An independent advisory body
The UK government introduced a similar bill 12 years ago and set targets and adopted policies to achieve those targets without significant political controversy.[15] Their initial 80 % reduction by 2050 was later updated to net zero emissions by 2050 last year. Similarly, they also have a climate change committee providing advice on how to proceed.
Australia’s Climate Politics have been toxic for a long time now with a lack of bipartisanship and aptly described as climate wars. The degree of bipartisanship shown by both major parties in dealing with the Covid 19 crisis solving problems based on science is what is needed here through this bill. Zali Steggal (Nov. 1 2020) recently said “No matter what your reason for coming to the debate on climate is, there is room for everyone to want action…It’s time to take the party politics out of this and move forward with a plan”. CLEANaS considers that this bill can contribute to ending of the climate wars and take climate change out of Australian politics in a similar way to what happened in the UK.
Net Zero Emissions by 2050The IPCC stated that global emissions need to reach net zero by 2050 to be consistent to limiting warming to 1.5 °C.5 Long-emissions reduction commitments through an initial legislated target of Net Zero by 2050 combined with 5 yearly emissions plans and budgets as proposed in this bill will help ensure that Australia can play its part in keeping global warming within safe limits and fulfil its international obligations. Furthermore, modelling has shown that moving towards a net zero emissions economy would unlock financial prospects in sectors including manufacturing and renewables triggering a $63 billion investment boom.[16] Deloitte Access Economics estimates such a new growth recovery could grow Australia’s economy by $680 billion (present value terms) and increase GDP by 2.6% in 2070 – adding over 250,000 jobs to the Australian economy by 2070.[17]
Many of Australia’s trading partners have adopted net-zero targets, with 73 countries now having adopted net zero 2050 targets.17 Moreover, a national net zero 2050 target has strong support with 68% of Australians supporting such a move.[18] CLEANaS aligns itself with the 68% of Australians supporting a national net zero 2050 target.
All Australian states and territories have committed to a net-zero emissions target.[19] For example, NSW Climate Change Policy Framework details the NSW Government’s objective to achieve net-zero emissions by 2050.[20] This long-term objective “sets a clear statement of government’s intent, commitment and level of ambition and sets expectations about future emissions constraints that will help the private sector to plan and act.” The Policy Framework states that the NSW Government will investigate how to embed consideration of climate change mitigation and adaptation across government operations including service delivery, infrastructure, purchasing decisions and regulatory frameworks. Furthermore, it states that Agencies will undertake additional policy investigation for sectors with significant opportunities and risks, including primary industries emissions and adaptation.
Similar to the UK Climate Change Act, the bill also includes continual adaptation planning with annual Risk assessments and 5-year adaptation plans as impacts of climate change are likely to materialise over time.
The bill also includes annual technology readiness assessments to advise the government on which technologies are ready to be implemented and which need more research, and potentially more funding and support to develop.
Climate Change CommissionAn essential part of the bill is the establishment of an independent advisory body (similar to the successful UK Committee on Climate Change) called the “Climate Change Commission”. This bipartisan appointed body through a science led approach would monitor progress on emissions and climate resilience, conduct independent objective analysis, and advise the government on what solutions are required. It would provide a level of transparency and legitimacy and facilitate more informed decision making on climate change. The UK Committee on Climate Change is regarded as the “fulcrum” of the UK climate change architecture, independent, strong and trusted, the Climate Change Commission would hopefully follow in these footsteps.14
This Climate Change bill would enable Australia to catch up to the many other countries in the world on action on climate change. It is important for Australia to join in with the rest of the world, particularly now as a Biden US presidency will change the world stage for significant action on climate change. This proposed legislation allows our government to step up quickly to these new challenges. CLEANaS considers that this Climate Change bill will assist Australia to catchup with the action on climate change undertaken by many other countries in the world.
Thank you for considering our submission,
Sincerely,
Alec Roberts
CLEANaS Chair on behalf of CLEANaS
[1] http://www.cleanas.org.au/
[2] NASA (n.d.) Scientific Consensus: Earth's Climate is Warming. Retrieved from https://climate.nasa.gov/scientific-consensus/
[3] BOM (2020) State of the Climate 2020. Retrieved from http://www.bom.gov.au/state-of-the-climate/
[4] Readfearn, G. (2020, April 7). Great Barrier Reef's third mass bleaching in five years the most widespread yet. Retrieved from https://www.theguardian.com/environment/2020/apr/07/great-barrier-reefs-third-mass-bleaching-in-five-years-the-most-widespread-ever
[5] Deloitte Access Economics (2017, June 23). At what price? The economic, social and icon value of the Great Barrier Reef. Retrieved from https://www.barrierreef.org/the-reef/the-value
[6] IPCC (2018). Global Warming of 1.5°C: An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty, Intergovernmental Panel on Climate Change. Retrieved from https://www.ipcc.ch/sr15/
[7] Swann, T. (2019, July). High Carbon from a Land Down Under: Quantifying CO2 from Australia’s fossil fuel mining and exports. Retrieved from https://www.tai.org.au/sites/default/files/P667%20High%20Carbon%20from%20a%20Land%20Down%20Under%20%5BWEB%5D_0_0.pdf
[8] Ritchie, H. (2019, October 4). Where in the world do people emit the most CO2? Retrieved from https://ourworldindata.org/per-capita-co2
[9] Department of the Environment and Energy (2019, December) Australia’s emissions projections
2019. Retrieved from https://www.industry.gov.au/sites/default/files/2020-07/australias-emissions-projections-2019-report.pdf
[10] Meinshausen, M. (2019, March 19). Deriving a global 2013-2050 emission budget to stay below 1.5°C based on the IPCC Special Report on 1.5°C. Retrieved from https://www.climatechange.vic.gov.au/__data/assets/pdf_file/0018/421704/Deriving-a-1.5C-emissions-budget-for-Victoria.pdf
[11] Tong, D., Zhang, Q., Zheng, Y., Caldeira, K., Shearer, C., Hong, C., Qin, Y., & Davis, S. J. (2019). Committed emissions from existing energy infrastructure jeopardize 1.5 °C climate target. Nature, 572(7769), 373-377. https://doi-org.ezproxy.newcastle.edu.au/10.1038/s41586-019-1364-3
[12] Climate Council (2018) Australia’s Rising Greenhouse Gas Emissions. Retrieved from https://www.climatecouncil.org.au/wp-content/uploads/2018/06/CC_MVSA0143-Briefing-Paper-Australias-Rising-Emissions_V8-FA_Low-Res_Single-Pages3.pdf
[13] Cox, L. (2019, March 14). Australia's annual carbon emissions reach record high. Retrieved from https://www.theguardian.com/environment/2019/mar/14/australias-annual-carbon-emissions-reach-record-high
[14] DISER (2020, May) National Greenhouse Gas Inventory: December 2019. Retrieved from https://www.industry.gov.au/data-and-publications/national-greenhouse-gas-inventory-december-2019
[15] Fankhauser, S., Averchenkova, A. & Finnegan, J. (2018, March 10). 10 years of the UK Climate Change Act. Retrieved from https://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2018/03/10-Years-of-the-UK-Climate-Change-Act_Fankhauser-et-al.pdf
[16] Cox, L. (2020, Oct 12). Net zero emissions target for Australia could launch $63bn investment boom. Retrieved from https://www.theguardian.com/australia-news/2020/oct/12/net-zero-emissions-target-for-australia-could-launch-63bn-investment-boom
[17] Deloitte Access Economics (2020, November) A new choice: Australia’s climate for growth. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/au/Documents/Economics/deloitte-au-dae-new-choice-climate-growth-051120.pdf?nc=1
[18] TAI (2020) Climate of the Nation 2020 Tracking Australia’s attitudes towards climate change and energy. Retrieved from https://www.tai.org.au/sites/default/files/Climate%20of%20the%20Nation%202020%20cover%20[WEB].pdf
[19] Climate Council (2020, July 9) NT puts Australia on track for net-zero climate target. Retrieved from https://www.climatecouncil.org.au/resources/nt-puts-australia-on-track-for-net-zero-climate-target/
[20] OEH (2018). NSW Climate Change Policy Framework. Retrieved from https://www.environment.nsw.gov.au/-/media/OEH/Corporate-Site/Documents/Climate-change/nsw-climate-change-policy-framework-160618.pdf
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This will complement the $4 million 2.0 megawatt system installation expected in 2019 which will see over 6000 panels installed across approximately 25 buildings at the Callaghan campus with additional panels also installed at the Ourimbah campus.
In 2016, CLEANaS in conjunction with the Tom Farrell Institute conducted a feasibility study on the Callaghan Campus going 100% renewable energy by 2020 as part of the Lighthouse Community Energy Project funded by the NSW Office of Environment and Heritage Growing Community Energy Program. This determined that it is both technically feasible and financially beneficial to implement 100% renewable electricity.
Achievement of this goal by 2020 will place the University of Newcastle as a leader in Sustainability and Energy Management across the Australian tertiary sector; will stimulate research and teaching in renewable energy; and will drive new student enrolments across all Faculties with young people attracted to learn at the greenest and most innovative University in Australia.
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By Tim Roberts and Alec Roberts, Chair of CLEANaS
A great way of reducing your power bill is by having solar PV on your roof. With generous government subsidies, you can pay up front to install the solar panels or effectively lease them with zero dollars up-front finance available. Either way, using electricity generated by the panels reduces what you use from the electricity grid and therefore your electricity bill. In addition, when you do not use it this excess generation is exported to the electricity grid and you get a credit on your bill called a feed-in-tariff that further reduces your electricity bill. The cost of electricity from the grid is greater than the cost from solar. So, depending on when you use electricity, expect the savings to be 3-4 times the cost of the panels over their 25-year lifetime for a household. If you have a business running normal office hours, the savings are even greater at potentially 5-6 times the initial cost of the panels.
However, not all Australians can put solar on their roofs. They may rent, live in apartments, or houses with rooftops that are shaded. The people that are locked out of the benefits of rooftop solar often include those on low-incomes where a significant proportion of their daily costs are from the power they consume.
Solar gardens may provide a way for these Australians to access the benefits of solar to reduce their energy costs. Solar gardens are the fastest growing sector of the solar industry in the US. Solar gardens work by installing a large solar array (usually 99kW) close to electricity users (such as on a warehouse roof). These users can buy or lease solar panels in the array and the electricity generated by the panels is credited to their energy bill reducing their energy costs.
Projects are currently underway to trial solar gardens across NSW, supported by funds from ARENA and the NSW government, to develop prototype solar gardens business models and identify barriers and potential solutions to implementing solar gardens in Australia. Thus providing a way for those locked out of the benefits of rooftop solar to reduce their energy costs through solar power.
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In 2017 the UON installed a 278 panel 75 kilowatt system atop the library building in Ourimbah. This system is equivalent to powering 19 homes, reducing carbon emissions equal to taking 37 cars off the road or planting and growing to maturity over 660 trees.
The Industry Development Centre (home of the Tom Farrell Institute) had 32 panels (approximately 8.6 kW) installed in late 2016.
In 2016 the Tom Farrell Institute in conjunction with CLEANaS conducted a feasibility study on the Callaghan Campus going 100% renewable energy by 2020. For more information...
The University of Newcastle is committed to a 20% reduction on CO2 emissions per meter square of gross floor area by 2020 from a 2007 baseline. Through increased funding of on-site energy efficiency and renewable energy options together with the 2.0 MW system, the University is expecting to meet this commitment.
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Frontier Impact Group has been involved in assisting in the development of renewable energy projects across Australia. Recently Frontier Impact Group completed a project that addressed the funding options for communities to build renewable energy projects with a number of partners including the Australian Renewable Energy Agency (ARENA), Clean Energy Finance Corporate, Coaliton for Community Energy, NSW government, Yarra Community Solar, Embark and many others. They have also been exploring the idea of community cooperative models and see the key driver is for communities to use community investors as equity partners in their own projects.
The workshop was hosted by Fiona Lewis from NSW Government Office of Environment and Heritage (OEH) and targeted local councils, community energy groups, NFP organisations and local businesses in the Greater Hunter and Central Coast regions. Presenters included: Jennifer Lauber Patterson and Mal Campbell from Frontier Impact Group and Tom Nockolds from Pingala.
Participants at the workshop
The workshop was supported by the NSW Government Department of Planning and Environment and ARENA and aimed to provide participants with the tools needed to enable community renewable projects to get off the ground quickly with sound economic and environmental outcomes. The workshops sought to provide an in-depth understanding of the Community Renewable Energy Toolkit, which was developed as a guide for developing community solar projects by Frontier Impact Group.
Training was provided to support the use of the toolkit and included:
- Completing the planning and financial assessment of a real project;
- Identify key challenges in securing funding for Community Energy projects and how to overcome them;
- Recognising the steps required to develop large and small-scale Behind the Meter Solar PV projects;
- Managing risks associated with the development of Solar PV Projects;
- Learning how to use and apply the financial model template (spreadsheet) for Behind the Meter Solar PV projects; and
- Understanding the sharing of benefits between host sites and Behind the Meter Solar PV project investors.
The different forms of project funding for community renewable energy projects and factors that affect the choice of funding were described including:
- Equity funding: Retail and wholesale investors, institutional funds/banks (social impact funds), sweat equity and angel investors;
- Debt funding: Retail and wholesale investors, institutional funds/banks, angel investors, corporate balance sheets, and equipment lease companies.
- Grants
- Donations
- In-kind support
Case studies presented included: the Repower Shoalhaven project and Pingala: Young Henrys Project.
The Behind the Meter guidebook details the key project elements of a behind the meter Solar PV project and project phases (concept, prefeasibility, feasibility and final funding phases). The guidebook provides a logical checklist of things that need to be addressed at each phase in the project. This would be a very useful tool for Community Energy projects to help ensure their success.
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From left to right: Chris Harle (LMCC), Jo Muller (Central Coast Community Energy), Alec Roberts (CLEANaS), Tom Nockolds (Pingala), and Thomasen Knight (LMCC)
Lake Macquarie City Council is partnering with Pingala (a Sydney based Community Energy group) to facilitate community financed solar within the Lake Macquarie area.
There was good attendance despite a late change of venue with 5 clubs, and a couple of other businesses and solar vendors in attendance.
Chris Harle, Sustainability Engagement Coordinator, spoke on behalf of Lake Macquarie council on current council initiatives in sustainability and renewable energy.
Alec Roberts (Chair of CLEANaS) gave an introductory talk on community energy and the importance of energy efficiency to be included in community energy projects. Alec also presented on CLEANaS past and present projects undertaken including Hunter Wetlands Solar project.
Tom Nockolds (Pingala Secretary) spoke about Pingala’s successful recent project Young Henrys Project, where Pingala put 115 solar panels on the roof of Young Henrys, a craft brewery in inner-west Newtown. The 29.9kW solar system installed has enabled Young Henrys to produce “solar-powered beer”, and reduce their carbon footprint. Pingala raised finance for the project from the local community at an investor event at the brewery. Investment was through a cooperative share offer which sold out in 9 minutes! Community investors are expected to receive a ROI of between 5%-7% on their investment in the project.
Both CLEANaS and Pingala presentations spoke to what makes a good host site for and why go with community solar. A good host site has:
- high day-time energy demand;
- available roof space with N-NW aspect and good access and safety;
- long term tenure (>10 years);
- well defined and large supporter group;
- good visibility/contribution to region;
- flexible and motivated building owners;
- no access to discounted energy contracts; and
- a project champion within the organisation, that can help galvanise support for the project
Community solar offers businesses an alternative model to private rooftop solar. It not only protects the business against rising electricity prices and generates clean energy on site, community solar helps forge strong relationships with the local community, as members of the local community are often investors in the solar installation.
Therefore, upfront as a business:
- Solar must stack-up for your business;
- Financing should be something that you’re interested in, viz avoiding up-front purchase and other normal financing benefits; and
- You are keen on Community engagement and the marketing opportunity associated with a Community Solar project.
Most clubs that attended had large membership bases and also large electricity bills. Only one already had some solar PV installed but wished to add more if possible. The representatives from the clubs talked about the dramatic increases in electricity bills and effects on their clubs. They also talked about the difficulty of getting impartial advice about installing solar.
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NSW Office of Environment and Heritage
Thank you for the opportunity to provide input to the Climate Change Fund Draft Strategic Plan 2017 to 2022.
CLEANaS is the Clean Energy Association of Newcastle and Surrounds, a not-for-profit association formed in 2012 by a group of locals passionate about clean energy. CLEANaS is dedicated to driving the uptake of clean energy that our region can transition from our current dependency on fossil fuels to a more competitive and sustainable local economy. We will achieve this by working with our partners to demonstrate profitable community-led and community-owned clean energy projects; raise the profile of clean energy in the local economy through education and awareness raising; and by improving access to financing mechanisms and affordable technologies so that investment and activity grow. Our initiatives must deliver a win-win for local community investors, local enterprise and, of course, our environment.
Accelerating advanced energy: Attract investment in advanced energy and save emissions
Unlock investment under the Renewable Energy Target - Maximise investment under the national Renewable Energy Target
This plan proposes to support up to 540 MW of renewable energy projects over five years. This amount must be increased five-fold. NSW is far behind other states when it comes to attracting renewable energy investment and jobs. For comparison in the ACT “… the first round 2014 Amendment Bill to the Act was passed, entitling the Minister to issue feed-in tariffs (FiTs) for up to 550MW of generation capacity…’. http://www.environment.act.gov.au/__data/assets/pdf_file/0009/796599/ACT-Wind-Auction-Review-Summary-report-final.pdf
NSW with a population about 20 times larger than the ACT should act accordingly.
Green Bonds
Green Bonds raise funds for new and existing projects with environmentally sustainable benefits. Green bonds can be issued to institutional investors, retail investors or a mix of the two. The Victorian government recently issued Green Bonds through Treasury Corporation of Victoria (TCV). The Green Bonds proceeds will go to financing and refinancing Victorian State investments in energy efficiency, renewable energy generation, low carbon public transport and water treatment.
http://www.premier.vic.gov.au/victorian-green-bonds-an-australian-and-world-first/
TCorp (the commercial arm of NSW State Treasury) could create and administer Green Bonds to provide financing for various state-backed infrastructure projects in energy efficiency, renewable energy generation, low carbon public transport, etc. This would free up the Climate Change Fund for use in initiatives not eligible for commercial financing. If the green bond was issued for retail investors (similar to Waratah Bonds) this would allow broad-based community investors to be engaged in supporting green initiatives such as renewable energy projects.
Energy Market Reform
Energy market reform should be a strong priority for the NSW government. The NSW Government needs to advocate this with the COAG Energy Council.
We support the government’s initiative to sponsor energy market reforms to improve network connection processes. For Community Energy projects not focussed on behind-the-meter this is key impediment to medium-sized projects. This reform would hopefully include the gas network in addition to the NEM.
National Electricity Objective
There is currently no requirement or mechanism to ensure that emissions reduction and energy market policies operate together. Nor does the governance of the NEM draw on the expertise of the bodies responsible for advising on and implementing emissions reduction policy.
http://www.chiefscientist.gov.au/2016/12/media-release-future-security-of-the-national-electricity-market/
As an initial step both the National Electricity Objective and the National Gas Objective need to be amended to include an environmental or emissions reduction objective. These objectives guide the AEMC, AEMO and the AER in executing their respective responsibilities.
Ancillary services market
The reliability and security of the national electricity system is a key part of the National Electricity Objective. Ancillary services supporting this reliability and security are currently provided by thermal generators in the NEM. As synchronous generators such as thermal coal generators are increasingly displaced by non-synchronous generators such as wind and solar, little has been done to ensure that ancillary services are maintained throughout the NEM. For example wind and solar are not currently configured to provide ancillary services.
The price of electricity in the NEM does not distinguish between sources of electricity or the contribution those sources make to the security and reliability of the system as a whole. The creation/expansion of an ancillary service markets would help address these issues.
Settlement Period
In the wholesale electricity market generation is dispatched and priced every 5 minutes, but the market is only “settled” every 30 minutes. This allows for the market to be “gamed” by generators (typically gas), who might push the price to the market cap for one five minute period, knowing that the benefits will flow. If the price was settled every 5 minutes, then the distortions would be removed and fast-response technologies such as battery storage could be encouraged, leading to a smarter, cleaner and more secure grid.
Accelerate advanced energy technologies - Attract investment in advanced energy demonstration projects
Most emphasis to date on renewable energy has been on variable renewable electricity generators such as wind and solar PV. Gas-fired generators are well-placed to complement variable renewable electricity generators as dispatchable generation. However, Australia’s east coast gas market has undergone profound change with the expansion of our liquefied natural gas export industry. Domestic gas prices have risen considerably as Australian gas markets have become linked to international markets and supply has been tight. Furthermore, CO2 emissions from gas although being 60% of black coal, should not be considered an end solution for dispatchable generation.
http://www.environment.gov.au/system/files/resources/b24f8db4-e55a-4deb-a0b3-32cf763a5dab/files/national-greenhouse-accounts-factors-2014.pdf
Renewable technologies that provide dispatchable generation and storage technologies that enable variable renewable energy to become dispatchable need to be considered.
These include Solar Thermal power stations, Biogas and Combined Heat Power plants, and Pumped Hydro Energy Storage, and Battery Storage.
Biogas with Biomethane upgrading plant would provide a renewable alternative to natural gas. In Australia to date there has not been any upgrading of biogas to biomethane to allow it to be used in the gas grid or used as a transport fuel.
Make New South Wales the centre for advanced energy innovation - Provide start-up funding to accelerate innovation in advanced energy
Set up regional hubs for green-tech startups.
Accelerate the transition to a 21st century transport fleet - Put the New South Wales vehicle fleet on the path to doubling energy productivity
Other potential actions could include:
Investigate renewable gas (biomethane) as low emission vehicles for long haul vehicles to replace diesel.
Invest in public electric vehicle charging infrastructure between towns and cities to decrease range anxiety (which is one of the main deterrents to the adoption of electric vehicles).
Work with local councils to deploy public electric vehicle charging infrastructure within towns and cities.
Provide incentives to EV use - such as use of transit lanes in cities during peak periods.
Better urban planning together with bike lanes and safe and direct foot paths will reduce the amount of car travel and reduce carbon emissions.
Empower local communities to adopt renewable energy - Build capacity of local communities to deliver and own renewable energy
CLEANaS would like to congratulate the NSW Government on: the leadership it has shown in supporting community energy over the last few years, and for continuing to recognise the importance of community energy in the Draft Strategy Plan and broader transition to a clean energy future in NSW. CLEANaS is supportive of the initiative to ‘sponsor energy market and financial regulation reforms through COAG to make it easier for community scale projects to connect to the grid and share their benefits.’
CLEANaS believes that debt or equity crowdfunding, should it become available in Australia, will remove a key barrier to the growth of broad-based community owned local renewable energy schemes. Crowd Sourced Equity Funding schemes available in other countries, such as those facilitated by Mosaic Solar in the US (www.joinmosaic.com), have demonstrated the potential for small investors to drive development of local renewable energy projects. See also our input on this under section ‘Energy Market Reform’ above.
The Regional Clean Energy Program has been an important first step in establishing a community energy sector in NSW. This needs to be extended and further developed into a set of policy mechanisms to support community energy development within NSW. These would include:
1. The adoption of the Smart Energy Communities policy. This includes:
- The establishment of at least 10 community hubs like Victoria’s Moreland Energy Foundation across NSW, to provide expertise, advice, coordination and support for community energy initiatives in their region.
- Provision of grant funding for community energy projects
- Funding for a network to provide capacity building support and information sharing across the state.
This policy could be implemented unilaterally by NSW or as part of a national partnership with other jurisdictions similar to the National Landcare Program.
https://d3n8a8pro7vhmx.cloudfront.net/solarcitizens/pages/1211/attachments/original/1461219971/Community_Powerhouses_Policy_-_Homegrown_Power_Plan.pdf?1461219971
2. The establishment of a community energy target. We suggest that a target of 5-10% of NSW’s renewable supply by 2025 should aim to be delivered from community energy projects.
3. That a policy mechanism be developed to help meet this target. Big gains can be made by creating a fit-for- purpose financial policy mechanism for community energy projects in order to leverage community, public and private finance.
4. Proactive encouragement of partial community ownership or sophisticated benefit sharing schemes for the large-scale renewable energy projects delivering through the Contracts for Difference process proposed in Section 2.1 of the Draft Strategic Plan.
Community support to clean energy and environmental issues within our region is strong and there are many examples where community has come together to support these activities through donations of time and money. Local people want to see the expansion of renewable energy and reduced reliance on conventional energy services. They also want to see the local economy diversify so as to capitalise on green economic opportunities including green jobs and markets. They also want to take control of their energy costs and have access to the means of managing their energy risks.
This requires investment, and CLEANaS believes that community is ready and willing to lead the way as long as there are clear and tangible shared benefits with strong local ownership and control.
Local investors for local benefit!
Our aim is therefore to involve broad-based community investors in profitable renewable energy projects which not only deliver a return on the investment but which also provide other tangible benefits to the local community. These other benefits include, strengthening the local renewable energy industry, reducing energy costs and risks to local business and social services, providing local people with an opportunity to engage in addressing global issues.
Community energy challenges
Community energy groups and projects face a raft of challenges in part due to the energy system and policies are not set up for democratically owned, mid-scale, decentralised energy. Furthermore rules, regulations and laws are also not set up for community enterprises.
Financing for community energy projects is a hard nut to crack within Australia.
For example, the 20/12 investor rule within the Corporations Act limits most projects to 20 ‘astute’ investors. This in general precludes the involvement of broad-based community investors.
https://onestepoffthegrid.com.au/how-equity-crowd-funding-could-transform-the-community-energy-sector/
To seek investment from more than 20 investors, a community energy project most likely will need to be covered by an Australian Financial Services Licence, have a Prospectus, and undertake significant annual reporting. All of these add to the upfront and ongoing costs of a community solar project. For <100kW projects, the income generated from the sale of electricity is unlikely to cover these additional costs. Systems of over 400kW are generally needed to cover these costs.
http://www.embark.com.au/pages/releaseview.action?pageId=9797728
One project to date has been developed using a co-operative model which allows greater than 20 investors but does not have as onerous upfront and ongoing costs as the company model above.
The current rules of the energy and financials market mean there are only two main viable business model for renewables – behind the meter solar, or large-scale wind or solar. Community groups have developed models for both of these approaches, but it means that a mid-scale community solar farm or bioenergy projects are currently not cost effective, constraining what communities can do. Particular challenges facing the economic viability of mid-scale renewables projects include:
- Difficulty negotiating a good PPA with a retailer;
- Cost of grid-connection;
- The high cost of using the grid, even if just transporting energy a short distance. That is the lack of ability to do Local Energy Trading and the lack of a Local Generation Network Credit (see section below).
Local Energy Trading
The current charging structure in the National Energy Market (NEM) reflects the historic model of one-way flows from large, remote generators, via the transmission and distribution systems, to the customer. Everyone except very large customers used all (or nearly all) network levels. This charging structure does not produce optimal outcomes. There is little incentive to reduce peak loads, there is no flexibility to cater for partial use of the distribution system, and the potential benefits of local energy generation and use are not rewarded.
Local generators sell at wholesale and buy back at retail prices. Therefore, there is a strong incentive for these customers (and product developers) to focus “behind the meter” & reduce grid consumption. This again has the potential for increased costs for consumers left using only grid electricity, as infrastructure costs are recouped from smaller sales volume.
Local Electricity Trading or Virtual Net Metering involves an electricity customer with on-site generation assign their ‘exported’ electricity to other site(s). This requires netting off generation from one site at another site on a time-of-use basis, so that Site 1 can ‘sell’ or assign generation to nearby Site 2. Local Electricity Trading provides an alternative to leaving the grid and provides social equity by mitigating the potential effect of spiralling customer loss from the network.
Benefits accrue to both the network and these local generators. The network provides the local generators access to bigger markets, keeps a high level of reliability, allows local generator to run systems for maximum efficiency, and supports technical requirements of consumers. In turn the local generators provides the networks with reduced transmission and distribution losses, the potential to save money on network investment, emissions reduction, increased resilience of system and technical network services.
Local Electricity Trading takes place between sites in the LV Distribution and potential HV Distribution and does not use Transmission and Subtransmission parts of the network. However, the network charges for the full network are currently levied against those wishing to partake in Local Electricity Trading. These additional charges affect the potential financial viability of Local Electricity Trading.
Local Network Charges provide reduced tariffs for electricity generation used within a defined local network area. In most circumstances, the tariff would reduce the network charge portion of electricity bills for local generators to the extent that the generation reduces long term network costs. This recognises that the generator is using only part of the electricity network, and reduces the network charge accordingly. To date reduced network tariffs have been applied most systematically in the UK. Local Network Charges should be technology neutral, calculated on performance rather than type of local generator, and applicable to range of sizes.
The introduction of reduced local network charges for partial use of the electricity network, and the implementation of local electricity trading between associated customers and generators in the same local distribution area provides a desirable alternative to customers who might otherwise choose to disconnect from the grid altogether or keep all their generation “behind the meter”, drastically reducing the amount of electricity they take from the grid.
Reducing network charges for local energy is a proactive approach to keeping networks competitive and managing the transition to an electricity market with high contributions from local energy. Local electricity trading coupled with local network charges has the potential to increase renewable energy options for the local community, supporting economic growth and local procurement of energy.
Further research and pilot projects are needed in a number of areas including project startup financing, legals, corporate governance and overheads, and investor models.
Save emissions and maximise the benefits in New South Wales - Reduce emissions in NSW to support achievement of interim and long term Commonwealth objectives
We oppose government support for research into low emissions coal technologies. Supercritical black coal has approximately 2 ½ times the CO2 emissions of Combined cycle gas turbine and represents only a 8.5 % improvement on conventional coal thermal generation.
Further research, development and effort is required in the measurement and control of fugitive methane emissions. For example one cannot base emissions levels for coal seam gas based on conservative US estimates from conventional gas extraction. EPA should be conducting their own measurements or using a trusted third party.
We support the move to advocate for Commonwealth, COAG and international action consistent with the Paris agreement.
Government to lead by example to lower energy costs - Expand investment under the Government Resource Efficiency Policy
CLEANaS supports the initiative to support council to upgrade public lighting. However, it should be noted that in NSW most councils do not own the public lighting as these are often owned by the electricity network and their use charged back to the local council. LGA’s generally have little or no control over upgrades/replacements. It is proposed that a revised ownership/lease model be developed to allow for upgrades to be financed and carried out.
NSW government should look into the ACT funding model for energy efficiency undertaken with government departments which has a great deal of success. This could be applied at a local government or state department level for NSW.
Reduce energy costs for households and businesses – Improve energy productivity for households and businesses
This needs to include a plan and actions to address energy efficiency in community based facilities. Community groups often have significant energy costs which need to be funded out of community memberships and fundraising. With energy efficiency measures identified and undertaken these funds can be redirected to core activities of the community groups. Energy Efficiency measures such as lighting upgrades are cost effective with short payback periods using energy savings.
Make homes more liveable and affordable for renters – Drive clean energy upgrades for rental households
We commend the NSW Government on making clean energy accessibility and affordability a focus of the Draft Strategic Plan. This is a focus for many community energy groups in NSW. We support the focus on renters including the plan to provide ratings for homes at the point of sale and lease and improve energy performances of tenanted houses.
To help drive clean energy upgrades in rentals, the NSW government should advocate tax changes to accelerate depreciation for energy efficiency and Solar PV for investment properties.
Support vulnerable communities to access energy efficiency - Support vulnerable households to reduce their energy bills
Energy poverty is the unspoken issue with vulnerable communities and will only get worse as the effects of climate change impact on these communities.
In particular, we support the focus on social housing and looking at ways that concession schemes could be used to achieve lower bills and improved energy productivity/clean energy deployment.
The Home Power Saving Program delivered low-cost energy efficiency retrofits to over 220,000 low income households across NSW. We propose to reinstate the Home Power Saving Program.
The Smart Energy Communities program outlined above has an important role in facilitating more innovative and complex clean energy models and programs for vulnerable and locked out energy users e.g. rates-based financing, rent-based financing, social access solar gardens etc
Other priorities
The raising of the Warragamba Dam wall has the potential to cause significant damage to world heritage-listed Greater Blue Mountains wilderness and national parks, by flooding 3,500 hectares. In any case the Climate Change Fund should not be used to fund infrastructure projects. Green bonds provide a mechanism for funding large green infrastructure projects that could be arranged through t-Corp.
Purpose of the fund
The purpose of the climate change fund is to reduce greenhouse gas emissions and the impacts of climate change, and to support water and energy savings. In the draft plan, the government is only consulting on $500m of the fund’s total $1.4bn over the next five years, while the bulk of the fund, $900m, is invested in projects, several of which are only tentatively linked to the purpose of the fund.
This plan proposes to support up to 540 MW of renewable energy projects over five years. By comparison, Victoria will contract an additional 1800 MW by 2020, and 5400 MW by 2025. ACT has already contracted 600 MW, 100% of their energy use by 2020.
NSW is already far behind other states when it comes to attracting renewable energy investment and jobs. Only 7.7% of the energy NSW generates comes from renewable sources, compared to SA’s 41%.
This draft plan proposes slashing government investment in renewable energy by 80% - from $214m in 2015 to $40m per year over the next 5 years (Climate Change Fund draft plan, page 10).
http://www.environment.nsw.gov.au/grants/ccfund.htm
The NSW government shouldn’t reduce its investment in renewable energy. Instead, making greater use of the $1.4bn fund, as it was intended, it would make a substantial contribution to transitioning NSW to clean energy, and capturing opportunities such as jobs, innovation and investment. This is the type of effort that is required for NSW to act in line with the Paris agreement do its fair share to limit climate change to 1.5 to 2°C.
Orderly Transition
We welcome the fact that the NSW Government has recognised that an energy transition is underway and that an “orderly transition will deliver reliable, affordable energy into the future while avoiding bill shocks for households and businesses.” In addition to an orderly transition, we call on the NSW Government to ensure that it is a just transition, particularly for communities and workers in coal regions of NSW. Change is always difficult, but it becomes less so when those most affected by change are empowered to take control of their future. Communities experiencing the shutdown of coal-fired power stations, need to be supported to develop comprehensive local economic plans and clean and renewable energy initiatives should be a component of these plans.
Thank you for considering our submission,
Sincerely,
Alec Roberts
CLEANaS Chair
on behalf of CLEANaS
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Retail tariffs don’t look too promising with most offerings below 9c/kWh feed-in-tariff for electricity sold back into the grid.
Blockchain technology provides an opportunity to change the way we sell our surplus energy. Blockchain is the software behind bitcoin transactions. Bitcoin transactions are secured by military grade cryptography and payments are irreversible and secure.i Bitcoin is a virtual currency and can be exchanged for cash or used to buy goods and services (such as paying your electricity bill).ii
Thanks to Bitcoin and Blockchain technology, peer-to-peer (P2P) trading of renewable energy such as solar PV is now possible. A community energy market using blockchain technology and smart contracts enables P2P trading for community members to trade energy, both securely, and automatically.iii Blockchain can be utilised to allow households with solar PV systems to sell their excess clean energy to their neighbour using the electricity grid.iv
Electricity is sold by the Solar PV owner at a price greater than their retail tariff and bought by their neighbour for less than what they would pay for electricity from their retailer. This is a win-win.
The purchase of clean energy through electricity retailers (such as GreenPower), reduces greenhouse emissions, helps Australia transition to renewable energy and is good for the environment. However, as a process it is not necessarily transparent, local, nor community-centric compared to a community energy market using blockchain technology. Community members produce their own renewable energy, and incentivise each other to purchase any excess, supporting a local energy marketplace.v
Power Ledger, a Perth-based start-up, has commenced trials of P2P energy trading using blockchain technology at various sites in Australiavi and New Zealandvii with commercial trials expected in 2017.
i https://bitcoin.org/en/
ii https://bitcoinmagazine.com/articles/living-room-satoshi-launches-pay-anyone-bitcoin-payment-service-australian-bank-account-1434406666
iii https://news.bitcoin.com/bitcoin-blockchain-solar-energy-boom/
iv https://westernpower.com.au/community/blog/the-energy-market-s-silent-revolution/
v https://medium.com/@AshTayTweets/blockchain-community-solar-the-value-of-a-renewable-energy-reputation-b3fbcfcba4a3#.deowcbp14
vi http://reneweconomy.com.au/bitcoin-inspired-peer-to-peer-solar-trading-trial-kicks-off-in-perth-29362/
vii http://www.the-blockchain.com/2016/10/28/peer-peer-blockchchain-fuelled-energy-trading-trialled-new-zealand/