13 December 2024

CLIMATE POLITICS

Peter Dutton says nuclear 'will make electricity cheaper' but critics say Coalition costings a 'fantasy' (The Guardian): Peter Dutton claims his plan to introduce nuclear energy in Australia will “keep the lights on” at a lower cost than the Labor government’s renewables-reliant transition. “This is a plan which will underpin the economic success of our country for the next century,” Dutton said in Brisbane on Friday. “This will make electricity reliable. It will make it more consistent. It will make it cheaper for Australians and it will help us decarbonise as a trading economy – as we must.”

Coalition unveils nuclear costs, assuming smaller economy and higher missions (ABC News): Peter Dutton's nuclear power proposal relies on a smaller economy and higher carbon emissions, and would cost more than $300 billion, according to his long-awaited costing. The proposal would still see more than half of Australia's power come from renewables, but coal would be kept for longer to fill the gap before nuclear plants arrive in 12 years' time at the earliest. The costing, prepared by Frontier Economics, found a system with nuclear would be cheaper over a 25-year period than a system without it.

Chris Bowen and Ted O'Brien debate Australia's energy future, following release of CSIRO GenCost report (ABC News): Shadow minister for energy and climate change Ted O'Brien says the Coalition's long-awaited nuclear energy costings will be released within the week. The nuclear energy transition plan put forward by Peter Dutton in June promised seven sites for proposed nuclear plants but at the time didn't contain costings.

CSIRO reaffirms nuclear power likely to cost twice as much as renewables (ABC News): Building a nuclear power plant in Australia would likely cost twice as much as renewable energy even accounting for the much longer life-span of reactors, according to a new report from Australia's leading science agency. In its latest economic analysis of the cost of building various energy projects, the CSIRO found nuclear plants enjoyed relatively little financial advantage from their long lives, which could be double a solar or wind farm.

Coalition claims nuclear plan $263b cheaper than renewables rollout (Australian Financial Review): The Coalition’s nuclear power plan will cost up to $263 billion less than Labor’s renewable rollout between now and 2050, translating into cheaper electricity over the long run, its long-awaited economic modelling purports. The costings, conducted by Frontier Economics and to be released on Friday by Opposition Leader Peter Dutton and energy spokesman Ted O’Brien, estimates the capital and operating costs of the Coalition’s policy to deliver net zero emissions electricity by 2050 will be $331 billion.

Internal Coalition fears Dutton nuclear plan will confirm no return to good old days of energy prices a decade ago (ABC News): Peter Dutton will unveil politically risky costings for his nuclear power ambitions on Friday amid rumblings from within the Coalition that the high-cost plan will derail his political strategy of keeping pressure on Labor over cost-of-living and energy prices. Senior Coalition sources expressed reservations about the much-anticipated nuclear modelling, noting it would not map out an energy future in which households would get any immediate or even long-term relief.

Bowen backs powers to delay closure of coal, gas plants to keep lights on (The Australian): Chris Bowen has backed new state powers mandating the extension of retiring coal-and-gas-fired power plants, sparking Coalition warnings Labor is being “dishonest” about longer-term reliance on thermal generation.

First Nations Clean Energy Strategy released (Utility Magazine): The Federal Government has unveiled its First Nations Clean Energy Strategy, which aims to provide a framework for government, industry and communities to place First Nations Australians at the centre of the energy transformation. 

Fed Gov launches roadmap to decommission offshore gas (Energy Magazine): The Federal Government has released a framework to ensure offshore gas decommissioning activities happen in a timely and safe manner, while also benefitting the Australian economy and environment. The Federal Government said Australia’s Offshore Resources Decommissioning Roadmap provides a pathway for governments, industry, workers and the community to build a domestic decommissioning industry.

WA Environment Minister Reece Whitby approves 50-year extension of North West Shelf gas project (ABC News):  WA's environment minister has approved the 50-year extension of a major liquefied natural gas (LNG) project following a six-year approvals process. Extending the life of the North West Shelf's (NWS) Karratha Gas Plant to 2070 is a major step in Woodside Energy's plans to develop the Browse LNG project off WA's north coast.

As billions of dollars pour into renewables, a planning backlog stalls the rollout (The Sydney Morning Herald): Developers of dozens of wind and solar farms say their projects are stuck in limbo as new figures show four out of every five applications lodged since 2018 are yet to pass the federal government’s environmental laws. The delays have become a major hurdle to Australia’s energy transition, investors say, making it more difficult to add enough renewables to the grid to keep electricity prices stable as coal-fired power station closures draw closer.

CARBON MARKETS

Rio Tinto says carbon price pain justifies action on emissions (Australian Financial Review): Rio Tinto estimates it would be paying $US600 million ($940 million) per year in carbon penalties by 2040 if it did nothing to reduce emissions, bolstering the business case for spending on decarbonisation. Rio has vowed to halve emissions by spending up to $US6 billion in the nine years to 2030 and now expects many of its decarbonisation projects to generate returns of between 12 per cent and 15 per cent.

CORPORATE SOCIAL RESPONSIBILITY

Calls grow for Westpac to reveal energy transition plan thinking (Australian Financial Review): Westpac will again face calls to release more detail on how it assesses high-emitting corporate borrowers’ energy transition plans, as shareholder activists prepare to reapply pressure at its annual meeting on Friday before Peter King hands the chief executive reins to Anthony Miller at the weekend. Westpac’s lending to Santos, APA Group and JERA this year has reignited anger among activists who argue financing expansionary fossil fuels projects is incompatible with its commitments to net zero. Others want to see more detail on how the bank decides which energy miners can get financing and which can’t.

BP puts Australian offshore wind interests into new “capital lite” venture with Japan energy giant (Renew Economy): British oil and gas supermajor BP continues its backwards march out of renewable energy investment with the news this week that it will merge its offshore wind business into a new 50:50 joint venture with the renewables arm of Japan’s largest power generation company, Jera Nex. In a move widely reported as part of efforts to “significantly reduce BP’s anticipated investment into renewables through the rest of this decade”, the new company will be called Jera Nex BP and will start life with a mixture of operating assets and development projects totalling 13GW.

'Green transition will be a huge challenge': AGL CEO (The Australian): Damien Nicks of the nation's biggest power generator says its critical to provide secure, affordable energy while funding the renewables rollout.

Money alone can't buy social licence for wind and solar projects (Renew Economy): Renewable energy projects are coming with bigger cash kitties for communities, but developers say money can’t buy everything – and certainly not if they don’t first listen to what the people are asking for. The incentives developers offer as the quid pro quo for putting a wind or solar farm or battery in a rural area are becoming more sophisticated and more targeted. Power bill rebates answer the long-running question of whether a renewable project will lower energy bills for locals, and big, co-mingled multi-project funds begin to emerge as ways to deliver more impact than one solar or wind farm can do alone.

GREEN PROJECTS AND INITIATIVES

Feds back 19 renewables projects (Business News): The federal government has selected 19 renewables energy projects for support under its Capacity Investment Scheme but WA projects will have to wait for the next round. There are multiple tender rounds under the Capacity Investment Scheme, which provides a long-term revenue safety net for renewables projects.

Indigenous energy developer tapped for NWIS transmission infrastructure (PV Magazine): Australia’s largest Indigenous-led renewable energy initiatives, the Yindjibarndi Energy Corporation (YEC), has been awarded project priority status for the Chichester Range transmission corridor in the Western Australian Pilbara region. Chichester is one of four of four priority corridors identified by the Western Australian (WA) government for the development of new common-use transmission infrastructure in the Pilbara’s North West Interconnected System (NWIS).

Pilbara First Nations 10 MW grid-scale solar project to supply Horizon Power (PV Magazine): Pilbara Solar, a 50% Aboriginal-controlled startup business and recognised social enterprise, has received an offer to connect (OTC) for the 10 MW Junja Solar Farm at Jinparinya located 26 kilometres east of Port Hedland, to deliver power to Western Australia’s (WAs) state-owned gentailer Horizon Power’s coastal network, known as Pilbara Network. Jinparinya Community Spokesperson Barry Taylor said the offer is the final milestone in developing the community’s first renewable energy project, which will feature approximately 30,000 solar panels set on 25.6 hectares of land, to produce 30 GWh per year and power the equivalent of 3,000 homes, with an operational life of about 30 years.

APA plots path from gas to become a Pilbara solar and batteries giant (The Australian Financial Review): APA Group says it hopes to expand its power generation portfolio in Western Australia’s Pilbara and commit to new investments within a year as it diversifies away from its core business of operating gas pipelines. The company has a big opportunity in the remote region – the heartland for the country’s iron ore mining operations. Industry giants from BHP and Rio Tinto to Fortescue – along with lithium developers, oil and gas operators and the fertiliser industry – are moving away from diesel to cut emissions, with demand for power expected to increase five-fold by 2050.

Power couple: green energy, gas giant bet on renewables (The West Australian): An Italian renewable energy giant and Japan's largest oil and gas company are plugging into Australia's clean energy resources under the banner of a new company. Potentia Energy will be launched at the Sydney Opera House on Monday as an Australian renewable energy firm co-owned by Rome-headquartered Enel Green Power and INPEX.

$475 million rare earths refinery grant a critical win for renewable technologies (PV Magazine): In partnership with Iluka Resources, the Australian government has provided up to $475 million (USD 303 million) in additional finance to Iluka to develop its $1.7 billion Eneabba Rare Earths Refinery project in Western Australia (WA). The additional funding is subject to securing offtake agreements satisfactory to the government and delivering positive outcomes in line with the community benefits principles under the Future Made in Australia agenda.

Brookfield-backed 450MW wind and big battery project gain first approvals under LNP government (Renew Economy): An up to 450 megawatt wind farm and an accompanying big battery project being proposed for development in Queensland’s Rockhampton region has won planning approval – the first to be issued since the election of the newly installed state LNP government in October. The Moonlight Range wind farm is being co-developed on farmland in Morinish South by Australian outfit Greenleaf Renewables and the renewable energy arm of Canadian investment giant Brookfield Asset Management.

Two major Sunshine State airports make switch to 100 pct renewables (Renew Economy): The Gold Coast and Townsville airports in Queensland will both switch to 100 per cent renewable energy at the beginning of 2025, ensuring clean energy operations for the more than 8 million passenger journeys averaged each year. From midnight January 1, 2025, the Gold Coast and Townsville airports – both of which are operated by Queensland Airports Limited (QAL) – will switch to 100 per cent renewable energy thanks to a new seven-year power purchase agreement with state-owned electricity company CS Energy.

CEFC hands $116m for private equity-backed mining decarbonisation (Australian Financial Review): The Clean Energy Finance Corporation has tipped more than $100 million into Resource Capital Funds to accelerate the decarbonisation of the mining sector and inject fresh momentum into the critical minerals supply chain. The resources-focused private equity firm will invest the funds into junior Australian miners with new, or greenfield projects that are focused on minerals in the clean energy space including lithium, copper, nickel, graphite and rare earths. The CEFC has also encouraged the firm to help those companies decarbonise their operations by at least 2035.

NSW councils sign 390GWh PPA (Energy Magazine): A group of 13 councils across New South Wales have joined forces to secure a power purchase agreement (PPA) to supply fixed-price electricity to 163 large council sites and streetlights. The agreement secures the supply of more than 390GWh of electricity across the 13 participating councils, ensuring consistent and reliable energy for essential infrastructure in regional New South Wales. 

Vulcan in line for $196 million debt finance for sustainable lithium business (PV Magazine): Export Finance Australia (EFA) has conditionally approved $196 million (USD 125 million) commitment to Western Australia (WA) sustainable lithium business Vulcan Energy as debt financing process for Phase One of its Lionheart integrated lithium and renewable energy project. The approval of the commitment is subject to completion of final due diligence and signing of legal documentation including an Australian export contract.

OTHER MATTERS OF INTEREST

Plico virtual power plant activates 2,500 home batteries to counter WA heatwave (PV Magazine): Western Australian (WA) provider of residential rooftop solar power and battery storage equipment Plico has seen its virtual power plant (VPP) activated twice in early December 2024 during heatwave warnings for the state. Providing stability to the South West Interconnected System (SWIS) and prevent blackouts, the company says it’s privately owned VPP has 2,500 household distributed energy resources (DER) participants, or the equivalent of one 27 MWh battery.

Australia’s energy operator wants emergency powers to switch off rooftop solar. What does it mean for households? (ABC News): If you're one of the 4 million Australian householders or business owners with solar panels on your roof, you may have been greeted with a rude shock at the start of this week. News emerged that the body responsible for keeping the lights on in Australia's main electricity grids wanted powers in every state to ensure rooftop solar could be turned down — or switched off — in extreme circumstances.

These six charts tell the story of Australia's (slow) progress on climate change (ABC News): Climate Change and Energy Minister Chris Bowen recently declared that Australia was "on track" to meet its climate change targets. Shortly after making this announcement, new data challenged that optimism. As a reminder of what Australia's targets are — we have pledged to bring emissions 43 per cent below 2005 levels by 2030, and reach net zero emissions by 2050.

‘Green bank’ splashes energy funding (The Australian): The Clean Energy Finance Corporation has deployed more than a third of a $1bn fund for household upgrades, and its latest commitment will go to customer-owned Bank Australia.

Bass Strait offshore wind zone to now be 30km from coast, smaller in size after community feedback (ABC News): An offshore wind zone in Bass Strait will now be smaller and further offshore than originally proposed, in response to community concerns. The federal government has declared a 7,100 square-kilometre zone stretching from Wynyard in the west to Waterhouse in the east.

Small island nations face climate-induced ‘catastrophe’, warn experts (The Guardian): The 65 million people living in the world’s small island nations face “catastrophe” from the health impacts of climate breakdown, say experts behind a Lancet Countdown report. Heatwaves, drought, insect-borne diseases and extreme weather are getting worse because of the climate crisis, putting lives and livelihoods at risk, found the report, the first comprehensive analysis of the state of climate change and health in island states.

Surging global tourism emissions are driven by just 20 countries – major new study (The Conversation): Surging global tourism emissions are driven almost entirely by 20 countries, and efforts to rein in the trend aren’t working. That is the main finding of our new research, published in Nature Communications today. It represents the most rigorous and comprehensive analysis of tourism emissions yet conducted.