09/06/2016

Australia Could Be 100% Renewable – With No “Baseload” – By 2035

Renew Economy - Sophie Vorrath

As plans emerge for the development of a massive new “baseload” solar thermal and storage plant to “replace” coal in South Australia, a new report from WWF Australia has questioned the very concept of “baseload”, arguing that this model of power generation is made redundant by a 100% renewable energy grid.
The report, published on Wednesday, argues that Australia could completely and effectively replace the nation’s mostly coal-based “baseload” power generators by harnessing huge volumes of renewable energy – using existing technologies, including battery storage – distributed across the country.
“The reality is that electricity usage is variable, demand changes throughout the day and night, and Australia doesn’t need baseload power generation,” the report says.
“With key market reforms in place to manage the energy transition, Australians can comfortably let go of the mindset of ‘baseload’ and have confidence in a modern, reliable, renewable energy sector powering our future.”
This “mindset” that renewable energy technologies like solar PV and wind don’t “do baseload” due to the intermittent nature of the resource has long been a barrier to the wholesale shift to renewables.
Of course, the argument – most commonly touted by the fossil fuel industry and coal lobbyists, and sometimes even by proponents of solar thermal technology – is increasingly being undermined by the onset of cheaper and more efficient battery storage.
But regardless of the rise of energy storage, many energy market analysts and players argue that the entire model of baseload energy supply is being made redundant by the shift to cheap and easy distributed renewables and increasingly sophisticated energy management software.
Certainly this is the thinking in places like Denmark, which is a functioning example of modern energy supply without baseload. But it is also the thinking in China, which still has a huge reliance on coal-fired power.
As the report notes, and we have reported here before, that much is evident in the February comments of the chairman of the State Grid (China’s biggest network owner), who said there was “no technical challenge at all” preventing grids from running smoothly without baseload supply. “The only hurdle to overcome is mindset.”
In Germany, 50 Hertz, the company responsible for more than one-third of Germany’s electricity grid,
says there is no issue absorbing high levels of variable renewable energy such as wind and solar, and grids could absorb up to 70 per cent penetration without the need for storage.
And the message is the same: “It’s about the mindset,” said Boris Schucht, the company’s CEO. “Ten to 15 years ago when I was a young engineer, nobody believed that integrating more than 5 per renewable energy in an industrial state such as Germany was possible.”
In the region Schucht operates in, though, 46 per cent of the power supply comes from wind and solar. Next year it will be more than 50 per cent.
In Australia, meanwhile, the mindset remains stubbornly in place, and yet 100 per cent renewable energy has already become a reality over given periods in given states, including South Australia and Tasmania.


The report notes that the ACT will soon rely on 100% renewable energy, with its policy plans to achieve this by 2020 using a mix of wind and solar, and existing large hydro.
But the report also notes that to support this transition further, it is vital that Australia urgently review its energy market frameworks to integrate them with climate change policies.
This very idea – that National Electricity Market laws should include an environmental objective, to keep Australia’s grid more closely aligned with its Paris climate commitments and national efforts to cut power sector emissions – was, however, recently rejected by the federal government.
The recommendation, made by the Australian Greens as part of a federal government inquiry into the performance and management of electricity network, was aimed at addressing community concerns about rising electricity prices and the reasons behind them.
Labor has also promised a review into the National Electricity Market and its “objectives”, and wants environment to be included. Without it, Labor climate spokesman Mark Butler said earlier this week, the market is not fit for purpose and has no signal to decarbonise.
Which brings us back to mindset: “In Australia we are used to the idea of ‘baseload energy’ being the energy that ensures we can flick the lights on at any point in the night, but that’s old thinking,” said Adrian Enright, Climate Change Policy Manager at WWF-Australia.
“The problem is the bulk of our baseload energy comes from high polluting, ageing coal fired generators. Some of Australia’s existing baseload capacity was built before man first landed on the moon.
75% of Australia’s existing coal generator fleet is passed its design life, according to the WWF report.
“To enjoy clean air and reduce carbon pollution Australia will need to shift to a modern, 21st Century model, powered by 100% renewable energy by 2035. This is possible, affordable and very popular.
In the lead up to the federal Election, WWF-Australia is calling on all parties to commit to a transition to 100% renewable electricity by 2035.

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Victoria To Stop Pumping Out Carbon Dioxide By 2050, Premier Daniel Andrews Promises

Fairfax - Adam Morton  |  Josh Gordon

The Macarthur wind farm in western Victoria. The Victorian government has set a target of zero emissions by 2050.
The Macarthur wind farm in western Victoria. The Victorian government has set a target of zero emissions by 2050.

Victoria will emit no carbon dioxide by 2050, if a target announced by Premier Daniel Andrews on Thursday morning is met.
The goal would mean no more burning coal for power in the Latrobe Valley and a big shift in how business operates and people run their homes.
Meeting the target would require a dramatic escalation in clean electricity generation and Victoria's relatively poor housing stock to become far more energy efficient including, for example, widespread use of solar panels linked to at-home battery storage.
Mr Andrews announced the target as part of changes to the state's Climate Change Act, following a review handed down earlier this year.
Changes backed include giving the government the power to direct the Environment Protection Authority to limit greenhouse emissions from an industrial site, and require it to set rolling five-year targets for emissions cuts across the state.
But the pledge came with few details and no new policies to meet it - and the government says it will encourage businesses to act, not impose penalties.
There will be no state emissions trading scheme or carbon tax, or to force the closure of coal plants.
A state renewable energy plan is due shortly, and expected to mainly encourage wind power – the cheapest form of large-scale clean electricity.
Climate Change Minister Lily D'Ambrosio has said she also wants long-promised solar farms to finally be built in the state's north.
The government last year set an initial target of at least 20 per cent renewable energy by 2020. Victoria currently gets about 12 per cent of its electricity from clean sources.
Later this year, the government promises a target for 2020 for its departments and agencies, including schools and hospitals.
It will ask businesses to pledge voluntary targets. The first state targets – for 2025 and 2030 – will be announced before the 2018 election.
The area hardest hit over coming decades would be the Latrobe Valley – home to Victoria's four large brown coal power plants.
The shift away from coal is already considered inevitable by energy companies in the wake of last year's Paris climate deal.
The French majority owner of the Hazelwood plant, the oldest and "dirtiest" of the four, has said it is considering the plant's future as it looks to exit coal across the globe.
The valley is likely to require government intervention to develop new industries and help for the thousands employed in the coal industry.
The government promised $40 million for the transition away from coal in this year's budget, but has not said how that would be spent.
Australian Industry Group Victorian chief Tim Piper said businesses were increasingly ready to act and the group supported encouraging industry to improve environmental practice.
But he disagreed with imposing state targets. He said it could hurt Victorian-based companies competing with those based in other states, but not having to meet a similar standard.
"While Victoria might see itself as a leader, it is important it doesn't disadvantage its businesses," he said. "It's not unreasonable that everyone gets on board, but they should have to get on board nationally."
Green group Environment Victoria welcomed the government's pledge to strengthen the Climate Change Act, but urged it act quickly on emissions.
"The road-toll aim is to reach zero. Targets for climate pollution are now the same. The sooner we get there, the better, and the more damage we can avoid," chief executive Mark Wakeham said.
The Climate Change Act was introduced by the Brumby Labor government before the 2010 election, and included a target of a 20 per cent cut in emissions below 2000 levels by 2020.
The Baillieu Coalition government amended the act to remove the target, saying it supported a national target.
Six years on from the act coming in, Victoria's emissions remain slightly higher than 2000 levels.
The Andrews government supported or supported in principle 32 out of 33 recommendations in the review of the act, led by Martijn Wilder, of consultants Baker & McKenzie.
It rejected a recommendation that it consider introducing an independent review process of whether government decisions were consistent with its climate policies, saying it could achieve the same outcome by taking expert advice before decisions were made.

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The US And India’s New US$1 Billion Renewable Energy Pact

PV-TechDanielle Ola

The US and India's new US$1 billion renewable energy pact
Prime minister Narenda Modi with president Obama in the Oval Office at the White House on Tuesday. Source: PTI

The US and India partnered on new renewable energy initiatives totalling a US$1 billion during prime minister Modi's visit to the White House on Tuesday.
The partnership for rapidly emerging Indian renewable energy sector paves the way for investment from several US and global equity agencies to enhance rooftop solar and modernise India's national grid.
The two initiatives for solar power are the US-India Clean Energy Finance initiative (ICEF) and the US-India Catalytic Solar Finance Programme (CSFP). ICEF will deploy up to US$20 million in project preparation support. According to White House reports, this funding is anticipated to leverage US$400 million in investment from the Overseas Private Investment Corporation (OPIC) and other investors for solar projects. The CSFP aims to deploy up to US$40 million in high-impact catalytic capital from US organisations and the Indian government; with a particular focus on off-grid and rooftop solar. It is anticipated to raise up to US$1 billion in capital flows, according to White House reports.

New incentives to advance clean energy
In September 2014, Obama and Modi pledged to strengthen and expand their US-India Partnership to Advance Clean Energy (PACE). On the back of the visit yesterday, both countries have launched new incentives to advance the joint clean energy objectives and Intended Nationally Determined Contributions (INDCs) initially outlined in under the Paris Climate Agreement.
Crucially, the two countries renewed strategies to support India's goal to deploy 175GW of clean energy by 2022. The US announced 5.4GW of new commitments to invest in India. One of those is 8minutenergy Renewables – who made a 4GW commitment to India's solar market. This will help the Indian government meet its aggressive renewable energy goal of 60GW alone in large and medium-scale solar. In addition, 8minutenergy's projects are expected to generate more than 10,000 domestic construction jobs, according to the company.
"We are dedicated to bridging US-India partnerships across the development spectrum – from financing to project construction and operations – in order to make this pipeline a reality," said Tom Buttgenbach, president and co-founder of 8minutenergy. "We will bring cutting-edge technology and deployment solutions, including many US-designed solar and storage options, to our global energy projects. It is 8minutenergy's mission to make clean energy abundant, and our commitment to the US and Indian solar markets are key to achieving this objective."
The company is also contributing to the Clean Energy Finance Forum, which provides private sector support to the US-India Clean Energy Finance Task Force – which explores bilateral approaches to clean energy funding. Under this initiative, the two countries are working to implement recommendations including standardising a model PPA, optimising a payment security mechanism for delayed payments for utility-scale projects and creating a warehousing facility of small renewable projects for an asset-backed green bond issuance.
California-based SunLink is also partnering with local Indian companies with a deployment target of 1.4GW spanning the next five years.
The US also announced a new Clean Energy Finance Hub that is to serve as a coordinating mechanism to filter US government effort that will increase renewable energy investment in India.
The main renewable energy goals that were re-focused during the visit include an effort to extend cooperation on rooftop solar to three new Indian states and steps to enable large-scale integration of renewable energy into the grid through the 'Greening the Grid' initiative. This latter piece includes a new US$18 million contract to implement new integration strategies and a new US$4.7 million initiative to pilot new technologies for balancing the grid.
The countries are also collaborating to enhance India's solar resource maps and data to help developers and policymakers identify quality solar projects.

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