Each fortnight, the team at ELS publish a news digest covering energy and sustainability. We read for our own pleasure but to save you time we identify a handful of pertinent articles from Australia and around the globe and add our own commentary. It used to be an internal memo but we kept being asked to share it, so here it is. It’s been a bit over a fortnight since our last update but these articles are sure to get you back in the swing!
In our final edition of the fortnightly news wrap up ahead of Christmas, we’ve seen major political announcements on emissions, both positives and negatives, the release of market operator system planning, and developments in the gas and electricity markets. All of this takes place in the context of the eastern states experiencing severe bushfires and drought. On a much happier note, the ELS team would like to thank all our readers for tuning in every fortnight, and we wish you all a great holiday and happy new year.
NSW to commit to new emissions reduction targets for 2030
Well it is a beautiful sight and one we did not think we’d see anytime soon but the NSW Liberal Government has decided to get themselves in gear on emissions reduction. There has been a long standing target for achieving net zero emissions by 2050, but no interim targets along the way. The proposed 35% reduction is a huge step in the right direction, not least of all because it does not involve carryover credits, and Matt Kean deserves to be commended for calling a spade a spade, and driving this shift in the Liberal party, looking to make Australia the Saudi Arabia of solar and the centre of the new energy order.
AEMO maps out path to 90 percent renewables for Australia by 2040
AEMO have released the updated ISP and it makes for some very interesting reading, especially under the step change scenario that sees Australia running with 90% renewables by 2040. It also outlines the huge opportunities for investors and project developers, with at least 30GW of new wind and solar required, accompanied by 5-21GW of dispatchable power. This would be an extraordinary shift away from the existing generation fleet and sees households grab a significant share of the electricity market via rooftop solar. If this is the future, then the future is looking bright!
https://reneweconomy.com.au/aemo-maps-out-path-to-90-per-cent-renewables-for-australia-by-2040-2040/
Exxon Mobil shelves Victorian gas import terminal plans
The ludicrous idea of the largest natural gas exporter in the world importing natural gas has been shelved for the time being. (Un)surprisingly people were not too keen to lock in long term contracts above $10/GJ from the import terminal, especially when the current spot price has dipped below $8/GJ (see here). While it is unlikely the feds will follow WA down the path of domestic gas reservation, the recent moves towards hydrogen represent an existential risk to players in the gas markets.
Energy efficiency market report - prices strong despite shock expansion
Excellent analysis from Marco Stella on how the energy efficiency certificate markets in NSW and VIC are tracking after the recent announcements for extending the programs and ramping up the energy saving targets. This is excellent news for both states as these programs will benefit energy users in the state. It also plays into an interesting dynamic in NSW, where the scheme has been predominately lighting based. The increased and extended targets comes at a time where lighting markets are slowing down and other methods are not picking up the slack.
Turnbull says Morrison bows to climate deniers, Kyoto fudge will leave mountain to climb
Some interesting commentary from former PM Malcolm Turnbull. We strongly oppose the use of carryover credits to meet the emissions reductions targets as they do not actually achieve anything, and we continually see significant opportunities for economically beneficial emissions reductions come across our desk. It also forces extra pressure on businesses in the future to reduce emissions at a more dramatic rate and with national emissions trending in the wrong direction this will only get harder over time.