PDC: Energy working group

This Working Group (WG) was established by the Policy Development Committee (PDC) on 23 January 2013.

Working group report
This working group was tasked with developing policy to develop a renewable energy base. The working group was chaired by Mark Gibbons and will present the following policy text to the March 20 PDC meeting.

Recommendation
As per the MAUT decision table for the Energy Policy Working Group, we recommend the institution of the following measures to build Australia's renewable energy base.

Platform statement
Australia is falling behind the rest of world in harnessing renewable energy despite its massive natural advantages. Our approach to driving renewable energy is simply not comprehensive enough: policies including the Renewable Energy Target (RET) and carbon price provide only partial solutions to domestic electricity emissions, and do nothing to curb much greater emissions from liquid fuels[1] and fossil fuel exports[2].

Rising coal prices force governments to provide more than $12 billion per year in coal subsidies to keep domestic prices down[3]. These subsidies far outstrip renewable investments and entrench our dependence on a dirty, finite energy source. Australia's coal power grid is deteriorating and will require investment of over $100 billion in the medium term[4]. A circuit breaker is needed to address the chronic problems in our energy model.

The ZCA2020 Stationary Energy Plan, produced by the Beyond Zero Emissions research organization, provides an alternative to patching up our obsolete coal power grid. The report presents an achievable and costed 10-year plan for building a renewable energy grid capable of entirely replacing coal-fired power in Australia[5]. A large-scale roll-out of renewable power will enable us address climate change in the necessary time frame, create over 150,000 jobs[6], and provide urgently-needed stimulus to the struggling manufacturing and construction industries. Associated costs can be met through the sale of completed power assets, and by re-working existing levies and revenue streams allocated to renewables. The project brings the ambition and vision encapsulated in the Snowy River Hydro scheme[7] to the 21st century.

Greater power generation in the community should support the grid. While solar PV is supported currently, the effectiveness is compromised by a "solar coaster" effect driven by continual policy changes among the states. Australia's share of the solar PV market has plunged from 7 per cent in 1991 to 1 per cent in 2008[8]. We can turn this around by adopting global best practice in the form of a harmonized national solar PV tariff which covers businesses and community groups as well as households[9].

Liquid fuel emissions can be reduced with a Renewable Fuel Target, modeled on the successful UK scheme, to drive investment in low-emission bio fuels[10]. Such a scheme should also drive take-up of electric cars and other efficient forms of transport.

Plans to increase Australia's coal exports must be re-considered: domestic reductions in coal burning provide little benefit if the coal is merely exported instead, or if export growth outstrips domestic cuts. We propose a temporary moratorium on new coal exploration until such a time as Carbon Capture and Storage technology (CCS) is viable and commercial, and we will encourage private interests to develop the technology on that basis. We can avert the potential impact on mining communities by ensuring that renewable jobs are created in close proximity.

A balanced mix of stimulatory state investment and market price mechanisms drive the adoption of renewable energy in the necessary magnitude without compromising the economy. Detailed work by scientists and engineers has provided a road-map for Australia to curb its emissions in the necessary time-frame and break our dependence on fossil fuels for good. All we need is political will.

Policy text
The Pirate Party proposes the following measures to cut carbon emissions and improve Australia’s economic resilience.

Institute a 10-year construction project to build a renewable energy grid, in line with ZCA2020 Stationary Energy Plan recommendations.
 * 195TWh/yr base-load power will be generated through construction of 12 Concentrated Solar Power (CSP) plants.
 * Each plant will house molten salt power storage facilities and utilize 18,000 heliostats.
 * Waste biomass co-firing will provide backup power.
 * Facilities will be positioned in areas of marginal land with high solar exposure.
 * Modular designs will maximize replication and economies of scale.
 * 130TWh/yr additional base-load power will be generated through deployment of wind turbines.
 * Use of large turbines and separation into 23 geographic sites will counter localized variability.
 * Existing upgrades of the electricity grid will be expanded to include:
 * Installation of high-voltage transmissions from CSP plants
 * Installation of plug-in connections from power generators
 * Interconnection of grids
 * Upgrades in transmissions technology, incorporating HVDC and HVAC systems
 * Inclusion of more active demand-side load management, including SmartGrid systems.
 * Funding arrangements will ensure that the full cost of the project (estimated at $370 billion over 10 years)[11] is met without the accumulation of long-term debt. These measures will include:
 * The sale of completed power generation assets
 * A $2/week household energy levy (raising approximately one-quarter of revenue required over the duration of the scheme)[12]
 * This levy will include a sunset clause, automatically removing it on completion of the project.
 * The existing RET will be removed to reduce cost pressures on households.
 * Incorporation of the initial $10 billion allocated to the Clean Energy Finance Corporation, as well as existing ARENA funds, and
 * Revenue raised through the carbon price.
 * The carbon tax will be maintained in current form until completion of the project, and then removed.
 * Governance arrangements will provide expert oversight and accountability.
 * An independent Energy Transition Organisation (ETO) will be formed to oversee construction of the renewable energy grid.
 * The ETO will receive a single up-front grant and will be responsible for allocating funds over the subsequent 10 years in an efficient, systematic and effective manner.
 * The ETO will be responsible for examining and incorporating new and developing technology subject to assessments of cost and risk.
 * This organisation will absorb the duties and staff of the Clean Energy Finance Corporation.
 * Surplus funds following asset sales will be returned to general revenue.

Improve incentives to reduce electricity demand and increase efficiency.
 * Enhance and unify solar PV incentives to increase power generation in the community.
 * Work through COAG to centralize funding arrangements for solar feed-in tariffs and apply a uniform nationwide scheme.
 * Net metering can be replaced with gross metering.
 * A single compliance and regulation regime will apply to solar companies.
 * Best practice recommendations from the Australian Solar Council can be adopted including a stronger compliance regime, improved staff development and training, and a "trust mark" program to assist consumers in identifying reliable companies.
 * Extend solar tariffs from existing coverage (households only), to include businesses and community groups.
 * Guarantee tariff rebates for 20 years and guarantee a 15 year payback period.
 * Review building standards to seek compliance with 10-star global best practice.

Phase out subsidies to fossil fuel industries.
 * Phase-out will conclude on the completion of the new energy grid.

Utilise market-driven solutions to reduce emissions from liquid fuels.
 * Institute a Renewable Fuel Target with a mandate for 50% of vehicle fuel to be supplied from renewable sources by 2030.

Curb emissions exports.
 * Ban development or expansion of coal fired power stations.
 * Apply a moratorium on new and expanded coal mines.
 * This moratorium will be lifted in when effective carbon capture and storage technology (CCS) is made commercially available. Sales of coal from new or expanded mines may then commence subject to agreement from the purchaser to utilize CCS.

Meeting Schedule
This working group has concluded the drafting process and no further meetings are currently scheduled.