Wholesale demand response brings benefits to consumers and reduces energy prices. A rule change currently being considered by the Australian Energy Market Commission is supported by a wide range of consumer groups, but opposed by incumbent energy companies. Demand response is being introduced in major markets such as the USA, EU and China, where similar patterns of support and opposition have been observed.
Climate & Energy Program
by Richie Merzian
[Oringinally published in The Canberra Times, 27 July 2019]
The single greatest threat to Australia and the Pacific is climate change. But given Australia's actions over the last 12 months, you wouldn't know it. The Australian government is only willing to pay lip service to what addressing that threat requires: serious climate action.
As states compete for top-place in renewable energy generation and upgrades to the National Electricity Market (NEM) reach growth rates comparable to the development of Australia’s original electricity grids, Australia’s transition to renewables needs more planning and support from Governments.
The Australia Institute Climate & Energy Program has released the latest National Energy Emissions Audit, analysing the electricity sector over the previous month. The Audit is authored by renowned energy expert, Dr Hugh Saddler.
Research released today by The Australia Institute shows that coal mines in Queensland receive a discount on royalty payments of up to 17% relative to similar mines in NSW.
This effective subsidy could be increased under a State Government deal with Adani currently being negotiated.
“Mines like Adani’s effectively get 17% of their coal for free thanks to existing Queensland royalty arrangements,” said Rod Campbell, Research Director at The Australia Institute.
“If the Adani mine is developed, this royalty loophole would deliver an annual subsidy of between $12 million and $30 million per year.
As Queensland’s Government and Opposition compete to sweeten deals for the coal industry, open-cut coal mines in Queensland already get up to 17% of their coal for free compared with similar mines in NSW. At average export prices over the past decade, the benefit to Adani’s mine would have been $223 million and $1.3bn to the Galilee Basin. Polling in both Queensland and NSW shows support for ending this subsidy.
Australia faces significant risks to national security, energy security and climate change mitigation, due to a heavy reliance on imported oil and access to only a limited amount of fuel at any one time, according to new analysis from the Australia Institute.
The new research finds that Australia is unprepared to deal with any potential fuel security crisis.
The Department of the Environment and Energy is conducting a Liquid Fuel Security review and public consultations on the Interim Report. This report is an edited version of The Australia Institute’s submission to that consultation.
The Interim Report outlines significant risks to Australia’s transport energy security. Addressing these security risks requires reducing oil consumption and accelerating the transition to electric vehicles.
The Public Interest Advocacy Centre, The Australia Institute and Total Environment Centre have today welcomed a draft rule by the Australian Energy Market Commission (the Commission) that will increase competition in the wholesale energy market, lower emissions and prevent blackouts.
The Australia Institute made a submission to Commonwealth Treasury’s Petroleum Resource Rent Tax Gas Transfer Pricing Review. Australians are being short changed by the LNG industry and the way it is taxed. A shift in the way the PRRT estimates transfer prices between a project’s upstream extraction and downstream liquefaction to ‘netback only’ pricing, could increase revenue by $89 billion between 2023 and 2050.
The Australia Institute made a submission on the proposed modification to the Ulan coal mine. Assessment of the proposal does not meet NSW guidelines and overstates potential benefits. It should be rejected on economic and climate grounds.