Tag Archives: Australian government

A Green House – Australian Response to Climate Change a Crucial Role for New Federal Government

11 September 2010

Ray Wills, CEO
Western Australian Sustainable Energy Association Inc. (WA SEA)
Website: www.wasea.com.au
Email: info@wasea.com.au

Australians want to see a serious commitment to action on global warming, and the new Prime Minister must work with the Greens and Independents to make the Australian Parliament, the operation of government, and the Australian economy more sustainable says by the WA Sustainable Energy Association Inc. (WA SEA).

‘Australia has voted and by electing a Parliament with green credentials, Australians have sent a clear message it is time to act on climate change, make Australia more energy efficient, and build renewable energy generation to power Australia in the 21st Century,’ says WA SEA Chief Executive, Prof Ray Wills.

‘The UN’s Intergovernmental Panel on Climate Change has been in operation for twenty two years. The world should have acted on global warming in the last century when science delivered the first strong warnings on global warming. Not enough action has been taken, and we are now out of time to avoid significant climate change. But, we must act decisively now if we want to avoid even more dangerous change in our climate,’ says Prof Wills.

‘We must fundamentally change the way we think about energy and how we do business. And we must act,’ says Prof Ray Wills.

‘To this end, specific incentives must be developed to deliver renewable energy projects outside of the National Energy Market and to islanded grids and isolated domestic and commercial energy users,’ says Prof Wills.

WA SEA calls on the new Gillard Government to work with COAG to develop a nationally consistent feed-in tariff (FiT) for renewable energy. The introduction of a FiT in overseas countries has led to significant growth of the renewable energy industry, particularly solar. A gross metered FiT mst be made available to all forms of renewable energy with tariffs set at different levels to reflect the value of embedded generation in domestic, commercial and industrial scale generation. Feed in tariffs are an effective market mechanism that will ensure the most efficient renewable energy technologies, as these deliver the most cost-effective investments under a FiT.

WA SEA, Australia’s largest energy chamber, says a new Federal Government must also walk the talk – measures being encouraged for business and the community must be rolled out and demonstrated as a greater priority in government operations. All government departments and agencies must be instructed to increase energy efficiency and install renewable energy on all existing government facilities and other public buildings. Further, the Government must ensure new buildings built on the public purse are energy efficient buildings and powered by renewable energy.

Further, mandatory installation of the most affordable and appropriate technologies such as solar hot water, solar air-conditioning, heat pumps and geothermal on all new houses and buildings and across new precincts, as well as requirements of all renovation and brown field redevelopment approvals, as well as on all existing government facilities and public buildings, will deliver long term savings to building owners and tenants, and to the tax payer.

The new Government has in place a target of generating at least 20 per cent of Australia’s electricity supply generated from renewable sources within less than ten years. Getting there will require immediate action to put in place the market structures that will allow business to respond and build the required generation facilities to meet the target according to WA SEA.

‘Responding to climate change will create new business, new employment opportunities, and a more sustainable economy in both urban and regional Australia.’

‘Renewable energy generation, combined with measures for better energy efficiency, means future proofing our economy and will produce a sustainable economy with fewer inflationary pressures for Australians,’ says Prof Wills.

‘Australia’s renewable energy sources are vastly greater than our fossil fuel resources, renewable energy is generally more labour intensive, and by the nature of the source, more broadly distributed across regions. With a better employment factor, renewable energy projects can lead to growth of local communities in rural Australia, and bolster a broad range of skills in agricultural regions.’

‘We do not have decades to respond to climate change – we have already had decades. It is time to take the heat out of this problem, and how we produce and use energy is the key to solving it.’

WA SEA congratulates all Minister’s on their appointments and notes that sustainable government will only be delivered with the collaboration of all portfolios:

Full Gillard Government Ministry:

Prime Minister: Julia Gillard
Deputy Prime Minister and Treasurer: Wayne Swan
Foreign Affairs: Kevin Rudd
Jobs, Skills and Workplace Relations: Chris Evans
Regional Australia, Regional Development and Local Government, Arts: Simon Crean
Defence: Stephen Smith
Health and Ageing: Nicola Roxon
Families, Housing, Community Services and Indigenous Affairs: Jenny Macklin
Infrastructure and Transport: Anthony Albanese
Broadband, Communications and the Digital Economy: Stephen Conroy
Innovation, Industry and Science: Kim Carr
Finance and Deregulation: Penny Wong
Schools, Early Childhood and Youth: Peter Garrett
Attorney-General: Robert McClelland
Agriculture, Fisheries and Forestry: Joe Ludwig
Sustainable Population, Communities, Environment and Water: Tony Burke
Resources, Energy and Tourism: Martin Ferguson
Immigration and Citizenship: Chris Bowen
Trade: Craig Emerson
Climate Change and Energy Efficiency: Greg Combet
Human Services, Social Inclusion: Tanya Plibersek
Home Affairs and Justice, Privacy and FOI: Brendan O’Connor
Employment Participation and Childcare: Kate Ellis
Indigenous Employment and Economic Development, Sport, Social Housing and Homelessness: Mark Arbib.
Small Business, Assistant Minister for Tourism: Nick Sherry
Veterans Affairs and Defence Science and Personnel: Warren Snowdon
Assistant Treasurer, Financial Services and Superannuation: Bill Shorten
Mental Health and Ageing: Mark Butler
Special Minister of State: Gary Gray
Defence Materiel: Jason Clare

Editors notes:

1. The Western Australian Sustainable Energy Association Inc. (WA SEA) is a chamber of enterprises that has a growing membership of over 360 industry members from a diversity of businesses. WA SEA is the largest energy energy chamber in Australia.

2. Prof Ray Wills is Chief Executive of the WA Sustainable Energy Association, Australia’s largest energy industry chamber, and Adjunct Professor with The University of Western Australia’s School of Earth and Environment where he contributes to the academic program and lecturing on the science, economics and politics of environmental change.

3. WA SEA bringing you the Energising SE Asia Conference 23-26 March 2011, Perth.

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Measuring a Renewable Government – Scorecard Forecasts Election With More Cloud Than Sunshine

16 August 2010

Ray Wills, CEO
Western Australian Sustainable Energy Association Inc. (WA SEA)
Website: www.wasea.com.au
Email: info@wasea.com.au

Assessing Potential Governments

Last week, the WA Sustainable Energy Association Inc. (WA SEA) released a comprehensive list of cost effective and practical actions that can be taken across all sectors of the economy that will boost national productivity, reduce inflation and ensure continued strong growth within the Australian sustainable energy industry and across Australia’s economy for decades to come.

The document consolidated a raft of commentary released by WA SEA aimed at improving Australia’s energy efficiency and take up of renewable energy generation, including measures that remove barriers to business entry and deliver incentives to ensure a more sustainable economy.

WA SEA then prepared an election score chart to document how well election commitments from all major parties are tracking against WA SEA’s action list.

WA SEA has given all parties – Labor, Liberal, Nationals and Greens – an opportunity to respond to the rankings, and has taken feedback received from parties into consideration.

In the assessment, the chart was simplified to rank the Liberal and National Parties in coalition. While WA SEA notes differences between Nationals policy in Western Australia and what has been assessed as joint Coalition policy at a Federal level, these details have not been separately considered here.

The table draws together previous commitments by parties while in government and opposition, together with analysis of new election commitments sourced from policy statements and media announcements. A total of 20 policy categories have been scored based on an assessment of each measure scored out of 5, with a total possible score of 100.

The Greens received the highest score with 73, Labor scored 32, and the Coalition scored 11 out of 100.

WA SEA Election Scorecard 2010

Score out of a possible 5 for each of 20 policies, a possible total score of 100

1. A renewable energy industry
Development of a diversity of renewable energy projects distributed across all regions of Australia
ALP: 3 (Support)
Coalition: 2 (Limited support – cut to funding for Renewable Energy Future Fund)
Greens: 5 (Strong Support)

2. Skills development and jobs in sustainable energy
Training and education to deliver the skills and knowledge to grow Australian jobs delivering sustainable energy outcomes for all sectors of the economy
ALP: 0 (No stated policy)
Coalition: 0 (No stated policy)
Greens: 0 (No stated policy)

3. Mandated Renewable Energy Target (MRET) a trajectory, not an endpoint
Planning consider continuing strong growth of renewable energy after 2020 and beyond 20%
ALP: 0 (No stated policy)
Coalition: 0 (No stated policy)
Greens: 5 (Strong measures supported)

4. A national emissions trading scheme
ETS the best market tool to deliver a price on carbon and to allow industry to respond and deliver certainty
ALP: 3 (Supported)
Coalition: -1 (Not supported)
Greens: 5 (Strong measures supported)

5. A strong emissions reduction target
scientifically based emissions reduction target for the nation of 80% by 2050
ALP: 2 (Stated targets not reflective of science)
Coalition: 2 (Stated targets not reflective of science)
Greens: 5 (Policy reflective of science)

6. Government purchase renewable electricity and biofuels
Government procurement of renewable energy
ALP: 0 (No stated policy)
Coalition: 0 (No stated policy)
Greens: 4 (Range of measures supported)

7. Government to be Carbon Neutral by 2015
Government operations must be offset by appropriate action
ALP: 2 (Energy Efficiency in Government Operations- EEGO)
Coalition: 0 (No stated policy)
Greens: 0 (No stated policy)

8. Investment in transmission and use of distributed generation and district generation
Transmission to facilitate investment in large scale renewable energy projects
ALP: 3 (Commitment to invest $1 billion in connecting renewable energy to grid)
Coalition: 0 (No stated policy)
Greens: 5 (Strong measures supported)

9. Feed-in tariffs for renewable energy for domestic, small-scale and large-scale generation.
FiT delivers the most cost-effective investments
ALP: 1 (No national policy – some coverage via COAG to promote national consistency)
Coalition: 0 (No national policy – support by WA liberal National Government but not carried to Federal election)
Greens: 5 (Stated policy for gross FiT)

10. Initiatives maximise use of low emissions and no emissions transport.
inclusive of pedestrians and cycling, domestic and commercial and industrial vehicle fleets, and all forms of public and industrial transport
ALP: 3 (Support for bicycles, lower emissions cars and rail)
Coalition: 1 (No clear policy beyond small, targeted measures)
Greens: 5 (Strong policy supporting international best practice) 

11. Public transport including light rail
investment in infrastructure for the benefit of future generations
ALP: 4 (Support for light rail including through Infrastructure Australia criteria)
Coalition: 3 (Support for light rail project)
Greens: 5 (Strong measures supported)

12. Removing polluting vehicles
Applied to both commercial and domestic
ALP: 3 (Cash for clunkers – businesses not included)
Coalition: 0 (No stated policy)
Greens: 3 (Use of government procurement, stringent fuel efficiency standards)

13. Mandatory installation of no emissions heating and cooling in new and renovated buildings
deliver cooling, heating, and production of hot water without emissions
ALP: 1 (No mandated approach – some coverage in Green Buildings policy)
Coalition: 0 (No stated policy)
Greens: 0 (No stated policy)

14. Energy efficiency incentives
Expansion of existing and addition of new programs
ALP: 2 (Minimal new commitments)
Coalition: 1 (No new commitment)
Greens: 4 (Strong measures supported)

15. Energy efficiency and greenhouse gas labelling for all appliances, buildings and vehicles
mandatory energy efficiency reporting in advertising
ALP: 0 (No stated policy)
Coalition: 0 (No stated policy)
Greens: 4 (strong measures supported – no detail on labelling)

16. Mandatory energy efficiency for larger firms
regulates and incentivises uptake of otherwise cost-neutral savings
ALP: 1 (Minimal commitment)
Coalition: 1 (Minimal commitment)
Greens: 5 (Strong measures supported)

17. Sustainability principles applied to new property developments and construction projects
regulates and incentivises uptake
ALP: 1 (Minimal commitment)
Coalition: 1 (Minimal commitment)
Greens: 5 (Strong measures supported)

18. Minimum energy performance and mandatory disclosure for buildings – and precincts.
implementation of rating and monitoring the energy performance
ALP: 3 (Commercial office building energy efficiency disclosure scheme)
Coalition: 1 (Minimal commitment)
Greens: 5 (Strong measures supported)

19. Minimise transaction costs for sustainable energy outcomes
government taxes and charges should be minimised on sustainable energy products
ALP: 0 (No stated policy)
Coalition: 0 (No stated policy)
Greens: 0 (No stated policy)

20. Government support for ethical business conduct
industry code of conduct and clear customer codes
ALP: 0 (No stated policy)
Coalition: 0 (No stated policy)
Greens: 3 (Policy applies to publically listed companies)

TOTAL
ALP: 32
Coalition: 11
Greens: 73

WA SEA Election Scorecard 2010 – Scorecard current as at 16 August 2010

o Only public commitments made on behalf of parties are included in the table for scoring purposes.
o A negative score may be given where a Party’s policy position is to reverse or cut an existing measure or otherwise has the effect of setting back existing budgetary allocations
o WA SEA does not endorse any political party, but supports all policies supporting sustainable energy outcomes for Australia. The scores in the election scorecard reflect WA SEA’s assessment of party policies against sustainable energy outcomes. Voters are urged to raise these issues with whichever candidate they prefer to seek their support for the nature of policies outlined here.

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Solar Policy Takes a Hit

Solar Industry Budget Cuts Announced

They say a day is a long time in solar policy. Over the weekend we saw Prime Minister Gillard announce $370 million in solar industry budget cuts to pay for the ‘Cash for Clunkers’ program.

Solar Hot Water was the first target. A total of $150 million was pulled out of the federal government’s solar hot water rebate program, (the Renewable Energy Bonus Scheme) with $75 million lost in 2010/11 and another $75 million in 2011/12. This could result in the premature end of that program.

Next the solar industry budget cuts affected Solar Flagships, with $220 million taken from stage one, (with $70 million lost in 2012/13 and a further $120 million in 2013/14). The Solar Flagships program has already been delayed by around a year while industry waited for detail and now funding has been cut.

In addition to the above, more solar industry budget cuts came from changes in the support given to small scale solar (solar hot water and solar PV). Originally the small scale scheme was proposed as an uncapped scheme. When the legislation passed however, a potential cap on support for small scale solar was set at 6 million Renewable Energy Certificates Australia in 2015.

Sounds OK? Not when you consider that in 2009 over 10 million small scale Renewable Energy Certificates Australia were created. (And no, this figure is not inflated by phantom REC’s to any significant degree, as phantom REC’s only started to wash through the system in late 2009). That means that the Renewable Energy Certificates price paid for residential solar could be reduced in the near future. More solar industry budget cuts ahead?

Connecting Renewable Energy to the Grid

On first pass it seemed that the solar industry has had a small win with the government committing $1 billion to connecting renewable energy to the grid. But then we learnt that the first tranche is $100 million over the next 4 years.

The cost of installed High Voltage Transmission lines that actually extend the grid are estimated to be around $1.7 million per kilometre. As it stands this policy is set to deliver less than 15km of new transmission line per year for the next 4 years.

Renewable Energy Feed-In Tarriff Victoria

But good solar policy is being implemented. Last week the Victorian Government committed to a 5% solar target by 2020, and a feed-in-tariff to drive that commitment. It’s a very strong policy – precisely the sort of policy the federal government should be adopting –  rather than solar industry budget cuts they need to be increasing support.

National Target for Solar Energy Supply

For too long the solar industry has been an easy target. Our industry is subject to constant policy change, delay and uncertainty. This is no way to run industry development policy.

What we need is long term stability. First, let’s set out a national target for solar at 5% of electricity generation by 2020 (around 6,500MW of capacity).

Next, put the policies in place that will drive domestic, commercial and industrial demand for solar. The federal government must build on existing State and Territory support for solar, by expanding feed-in-tariffs to include larger commercial and industrial solar.

At the largest scale a competitive feed-in-tariff would be ideal. This is where the projects that help reach the target, and can be developed for the lowest feed-in-tariff are successful.

Next we need to drive down the costs of these solar projects. One important way to do this is through government backed loan guarantees, which act to reduce the cost of project finance.

We have a world class solar resource. We have strong public support. We have proven technology that is rapidly falling in price. It is time we got serious about a comprehensive, long term plan for a solar Australia, instead of being hampered by solar industry budget cuts.

Need a Long Term Solar Energy Plan

Australia’s solar resource is available everywhere, it closely matches demand, and can it be stored and dispatched when it is needed most. If we are all active in spreading this message over the next week or so, perhaps it is not too late to turn the fate of solar around.

Now is the time to speak out.   Get active in online discussions; write to the media, and to your local federal candidates.

John Grimes, CEO   Australian Solar Energy Society (AuSES)
Website: www.auses.org.au Email: CEO@auses.org.au

Some useful media addresses follow:

The Australian letters@theaustralian.com.au Financial Review edletters@afr.com.au Sydney Morning Herald letters@smh.com.au

Daily Telegraph letters@dailytelegraph.com.au Canberra Times letters.editor@canberratimes.com.au Courier Mail cmletters@qnp.newsltd.com.au The Age letters@theage.com.au Herald Sun hsletters@heraldsun.com.au Adelaide Advertiser advedit@adv.newsltd.com.au Keep letters to 200 words and include your full name, daytime phone number and address.

We need to prevent more solar industry budget cuts. Spread the word that solar needs policy stability now.Click to read related articles on photovoltaics, renewable energy systems, green roofs, LEED and green architects on this blog.

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Energy Efficient Business Needs More Stars

25 July 2010

Ray Wills, CEO
Western Australian Sustainable Energy Association Inc. (WA SEA)
Website: www.wasea.com.au
Email: info@wasea.com.au

The WA Sustainable Energy Association Inc. (WA SEA) welcomes the Labor policy announcement today that will provide tax breaks to businesses that improve the energy efficiency of their commercial buildings.

WA SEA, Australia’s largest energy industry chamber, notes commercial buildings account for almost one fifth of Australia’s energy use.

‘Improving energy efficiency in commercial buildings could easily cut 10% of Australia’s greenhouse gas emissions,’ says WA SEA Chief Executive, Prof Ray Wills.

‘The measures announced by Labor today as an election commitment are significant and will create real change in the energy intensity of Australia’s economy. Improving energy efficiency in Australian buildings will improve both business profitability and national productivity, and strengthen Australia’s economy,’ says Prof Wills.

‘However, the measure is overdue and still only modest, not ambitious. We must change the paradigm of wasteful energy use in Australia’s business and aim for the stars – or at least more stars.’

‘The tax break proposed for buildings going from 2 stars or lower to 4 stars or higher must instead be strengthened.’

‘When spending taxpayers’ dollars, we must reward the best outcomes and not the “least best”. In particular, 4 stars is not all that ambitious, and the base for receiving the tax benefit should be at least a minimum 5 Star Plus performance level under the Building Code of Australia.’

‘Further, a graded reward could be applied, with a 25% tax break if the renovated building achieves 5 stars, a 33% tax break for 6 stars, and the full 50% for more than 6 stars,’ suggests Prof Wills.

‘Such measures must be accompanied by strengthened mandatory energy efficiency reporting of the energy use and efficiency that takes in all commercial buildings, not just big ones. Sales and rental advertising must disclose energy efficiency on both buildings to allow the potential owner or tenant to compare the running costs in different buildings.’

‘Eligibility criteria for the tax breaks announced today must include mandatory installation of renewable energy electricity generation, as well as solar water heaters or optionally high efficiency water heating such as heat pumps, on all buildings seeking benefit from this scheme.’

‘And consideration must be given to retrospective application from the date of the election – if start dates for initiatives such as this are delayed, markets will stall until start-up, and the building industry will be stuck in the doldrums of delayed incentives.’

‘Similar measures need to be developed across all Australian governments, and COAG and Local Governments must continue to improve energy ratings of new houses and buildings, with built into all renovation approvals.’

‘Most importantly, the Federal Government must also walk the talk – measures being encouraged for business must be rolled out and demonstrated as a greater priority in government operations. All government departments and agencies must be instructed to increase energy efficiency and install renewable energy on all existing government facilities and other public buildings. Further, the Government must ensure new buildings built on the public purse are energy efficient buildings and powered by renewable energy.’

‘In particular, all Government operations must aim to source 100% renewable energy for their power requirements by 2015.’

‘We must fundamentally change the way we think about energy and how we do business. And we must act,’ says Prof Wills.

Editors notes:

1. Labor statement on tax breaks for green buildings

2. What the world is doing

3. The Western Australian Sustainable Energy Association Inc. (WA SEA) is a chamber of enterprises has a growing membership of over 340 industry members from a diversity of businesses. WA SEA is the largest energy industry body in Australia.

4. WA SEA bringing you the Energising SE Asia Conference 23-26 March 2011, Perth.

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