Comment
netdaily.net.au
North Coast news daily:
Turnbull’s NEG claims first major renewable-energy victim Volume 32 #21
November 1, 2017
A big week of stuff-ups Let’s unpack Council’s shenanigans of the last week. Greens mayor Simon Richardson returned on Wednesday from being away to discover the general manager (GM) had taken it upon himself to start the masterplan project in Railway Park by lopping two large gum trees and a palm without telling anyone. Native tree lopping by anyone – including government – needs a DA and an arborist’s report for it to be transparent. Neither was provided, except an assurance later an arborist’s report exists and at least one tree was a public-safety issue. A large gum had been infected with wood-boring insects, which could lead to limbs falling, we were told. This followed an announcement by staff last week that public feedback through the masterplan leadership group indicated that the Byron Environment Centre rotunda in the park should be relocated by mid-December. Except that was found to be untrue and misleading; the masterplan group had not said that, or even seen any plans for Railway Park. In fact the issue had not even been discussed by them. And when the masterplan leadership group did meet later that week expecting to see reasonably detailed Railway Park plans, they were disappointed. Masterplan co-chair Donald Maughan said, ‘There were no clear boundaries of the zone we were working on or what sections were owned by what parties. Everyone is very confused.’ The mayor’s observation that they were ‘thrown under a bus’ appears correct, yet he admits he is unsure of how to prevent such public-relations disasters in the future. And now we get to plans to temporarily relocate around 300 market stallholders from Butler Street Reserve so a bus interchange can be built. It was announced by the GM, not the government who will be undertaking the project. There are no plans or costings, only a commitment. Yet the mayor has said The Echo story last week where market stall holders say they want location certainty was a ‘beat up.’ There aren’t many opposed to moving to the disused railway corridor, he claims. With completion expected within a year, it is entirely reasonable to seek assurances that a suitable alternative site can be found. The mayor’s claims of the noisy minority and the silent majority is unsupported and distracts from his own lack of leadership. It’s one of the excuses the last council majority bleated out before being blasting into political oblivion. Getting ducks in the right order means delegating to the appropriate departments. As this example demonstrates, haphazardly interfering or acting on behalf of another department creates unnecessary problems and angst. The state government should be stepping up to allay fears and provide modelling or a report that will give the assurance that all market stallholders can occupy the rail corridor safely. As project manager, the state government should be the one to organise the relocation of 300 stallholders and explain how a transport hub will co-exist with an established and much-loved market. Hans Lovejoy, editor News tips are welcome: editor@echo.net.au
‘The intent of the (NEG) policy is clear: to stop the development of large scale wind and solar.’ by Giles Parkinson ble-energy developers, and suggests that the more than 30GW of wind and solar projects in the pipeline – a total value of more than $50 billion – may also be similarly worthless if the new policy is put in place.
No renewables: higher prices The irony is that analysts such as Bloomberg New Energy Finance (BNEF), Morgan Stanley and Deutsche say that the lack of new renewable-energy projects will mean higher prices for electricity, particularly as many of the new wind and solar projects were being contracted at less than $60/MWh, lower than the current wholesale price. ‘It could however keep upward pressure on near-term (next three years) wholesale prices as less new renewable generation is brought to market,’ Deutsche says. That could actually be good for some of Tilt’s existing assets. Indeed, all companies with existing assets, be they coal and gas assets, or wind and solar farms, are likely to benefit from this new policy proposal. The eight-page document, prepared at short notice by the ESB for the federal government, makes it clear that the amount of new renewables will slow dramatically once the renewable-energy target is met in 2020.
BNEF notes the share of renewables is expected to reach 28 per cent in 2020, including rooftop solar, suggesting no growth at the bottom end of the range and only limited growth at the top, and then only if coal fired power stations close on schedule.
Ignores climate science The ESB modelling, prepared by the heads of Australia’s leading energy agencies, has sent shockwaves through the industry. There are questions over its independence, why the federal government has asked it to ignore the long-term Paris climate target, concerns over the role of lobby groups in drafting the legislation, and analysts have flagged numerous reasons the proposal should be treated with caution.
Secret document South Australian premier Jay Weatherill has sent a letter to ESB chair Kerry Schott demanding to know when work began on the NEG, why it was done in secret ‘without adherence to proper processes’. The states, all members of the COAG energy council, must approve the changes to the national electricity market rules that would allow the NEG to go ahead, but have been appalled by the
lack of process and secrecy. The ESB is supposed to report to the states through COAG, and Weatherill questioned its independence. He also queried the modelling and numbers produced, including assumed bill savings of up to $100/year by 2030. ‘I would assume significant work was conducted by the (ESB) to support the claims,’ Weatherill wrote. It turns out that there was no modelling, and the states weren’t the only ones kept in the dark. The energy and environment department had no input, and neither did any of the agencies involved in climate and renewable energy development – the Climate Change Authority, ARENA and the Clean Energy Regulator. However, it is now clear that utility executives and private lobbyists were involved, and the principal lobbying body, the Business Council of Australia, is trying to position itself as a broker to the details of the scheme, directly usurping the role traditionally held by public servants. Weatherill was even more damming in an interview on ABC’s Lateline program, saying the proposal was the result of ‘knuckle draggers in federal government that want to take us back to a past that has no relevance to a lowcarbon future.’ He said there was no way the states would approve the scheme – as they need to do for it to come into effect – if it is not serious about renewable energy. Previously published by reneweconomy.com.au.
Q
Stainless Steel Rainwater Tanks • Purest,
safest drinking water
• Better
The Byron Shire Echo
value
• Longer
lasting and better built
Established 1986 General Manager Simon Haslam Editor Hans Lovejoy Photographer Jeff Dawson Advertising Manager Angela Cornell Production Manager Ziggi Browning
The value of one of the biggest renewable energy companies operating in Australia has been slashed dramatically following the unveiling of the coalition’s government’s proposed National Energy Guarantee (NEG). Analysts at global investment bank Deutsche Bank said they’d slashed the value of Tilt Renewables by around 15 per cent, mostly because the market ascribes no value to its development pipeline of more than 1650MW of wind and solar projects, which now have less chance of suceeding. Energy analysts say that while the details of the NEG, put together by the Energy Security Board (ESB) and enthusiastically embraced by incumbent energy groups, are not yet defined, the intent of the policy is clear: to stop the development of largescale wind and solar. And the result, analysts agree, will be higher prices, not lower. The ESB modelling for the NEG policy proposal suggests a renewable energy share in Australia of 28–36 per cent by 2030, representing little or no additional capacity added between 2020 and 2030. ‘It just puts in doubt further renewable opportunities,’ Deutsche Bank says in its report. ‘It would appear that Tilt’s development pipeline holds far less option value.’ The target price for the company was cut by 14.6 per cent. Indeed, Deutsche says the market now ascribes no value to Tilt’s undeveloped pipeline of more than 1,500MW wind and 140MW of solar projects in Australia. This has enormous implications for other renewa-
• and
Nicholas Shand 1948–1996 Founding Editor
‘The job of a newspaper is to comfort the afflicted and afflict the comfortable.’ – Finley Peter Dunne 1867–1936 © 2017 Echo Publications Pty Ltd – ABN 86 004 000 239 Mullumbimby: Village Way, Stuart St. Ph 02 6684 1777 Fax 02 6684 1719 Printer: Fairfax Media Brisbane Reg. by Aust. Post Pub. No. NBF9237
12 November 1, 2017 The Byron Shire Echo
they look great!
(07) 5546 8571
www.stainlessrainwatertanks.com
Byron Shire Echo archives: www.echo.net.au/byron-echo