Brandishing Coal In A Heatwave? Scott Morrison Might As Well Fiddle Through The Energy Crisis

Fairfax - Peter Hannam

Whether emperor Nero really fiddled as Rome burned as legend has it, the parallels in Australia with our emerging full-blown energy crisis amid political paralysis are becoming disturbingly real.
After a heatwave that smashed records in many parts of eastern Australia, electricity supplies in coal-rich NSW and Queensland were strained to the maximum with only Friday's forced load-shedding by the nation's biggest aluminum smelter preventing rolling blackouts similar to those in South Australia last Wednesday.

Any takers? Treasurer Scott Morrison brandishing a lump of coal during question time last week. Photo: Andrew Meares

Queensland, the state least dependent on renewable energy, faces a renewed power pinch on Monday, with record daily demand predicted and early requests from the market operator for more supply.
Monday's menace follows near-record demand in Queensland on Sunday, when most residents were off work and seeking to enjoy the weekend, albeit a swelteringly hot one.
And all these events come as the National Electricity Market prepares to lose one of its biggest power stations, when Victoria' s Hazelwood shuts down at the end of next month.
And what do we hear from Canberra? An acceptance that we have long-standing energy issues coming to a simultaneous boil, and the rousing declaration we need to dial down the political heat to ensure a calm but rapid response from governments to ensure lives aren't lost or factories closed because we couldn't keep the lights or air-conditioners on?
Instead, we get but yet more railing by Prime Minister Malcolm Turnbull and Josh Frydenberg, his Environment and Energy Minister, against the "complacent, negligent energy policy" by state Labor governments because they want targets for renewables beyond 2020.

Minister: Power surplus, but please don't use it.
NSW Energy and Utilities Minister Don Harwin has requested the public to make restrictions to their power usage between peak times, in order to prevent potential rolling blackouts, despite claiming we have a power surplus.

That's right. Because some states want over-the-horizon targets to fill a void beyond the decades' end, we have found our culprits.
Yes, Victoria wants 40 per cent renewables by 2025 and Queensland 50 per cent by 2030 – the latter goal shared by federal and NSW Labor.

Energy and Environment Minister Josh Frydenberg gets his turn with the lump of coal. Photo: Alex Ellinghausen

But abandoning those distance goals won't do anything to curb today's soaring energy bills, nor bolster the grid's faltering reliability, let alone help Australia reach its 2030 national emissions goals that Turnbull professes to be serious about meeting.
Not that Monday's blame deflection effort was particularly novel. Last week, we had the spectacle of Treasurer Scott Morrison brandishing a lump of coal in question time, accusing his opponents of "coalaphobia".
That fossil fetish came even though the generators' own lobby, the Australian Energy Council, has concluded new coal-fired power plants are "uninvestable".
While it may suit the PM in his internal battle to halt more MPs in his party's climate change-denying right from following the defection of South Australian senator Cory Bernardi, the posturing does nothing to help bring the many and varied stakeholders to the table to resolve the energy morass.
Turnbull could do worse than take a lead from Don Harwin. The new Liberal NSW Energy Minister emerged from a tense few hours on Friday monitoring the market to thank residents

Kelly O'Dwyer, Minister for Revenue and Financial Services, was apparently less keen to hold the lump of coal proffered by Minister for Social Services Christian Porter. Photo: Alex Ellinghausen

for curbing energy demand – especially those with solar panels on their roofs – and promptly announce an Energy Security Taskforce to ensure the near-miss of widespread outages doesn't get an early reprise.
Turnbull could also ease off his criticism of South Australia's reliance on wind farms when it is the federal Renewable Energy Target that's driven investment into that state thanks in no small part to the low population and excellent resource.
And he should be wary of stoking the coals of the anti-renewables section of his Coalition and parts of the media.
As reported this weekend, investment in new solar and wind energy is not only bringing $5.2 billion into mostly regional Australia this year alone, the funds are providing the only large-scale capacity being added to the network.
Talk now of cutting the RET – itself a steep goal to reach after years of investor dismay during Tony Abbott's time as prime minister – only serves to undermine already fragile investor sentiment and diminish future appeal.
Certainly, many of the issues are arcane yet important.
How much should the NEM market rules be revised to reflect the climate objects of cutting emissions and absorbing renewables? How much should market manipulation by major gas and electricity suppliers be investigated to ensure they aren't making constraints worse and profiteering in the process? And how much extra work is needed to ensure the grid can absorb ever more renewable energy and storage that the global economics of the industry would seem to dictate?
Consumers expect that electricity and gas supplies will be available when they flick the switch or twist the knob, and they won't forget or forgive those in charge when either source fails.
Yes, they might entertain political and gas industry calls for NSW and Victoria to loosen or reverse curbs on unconventional gas production in their states. But they'd be right to doubt such moves would make any difference to prices or supplies in the near future.
Instead, they would rather see their leaders recognise we have a problem. Our energy policies aren't working and they are certainly not aligned to any coherent plan to tackle climate change – an urgency felt by many people experiencing extreme conditions that scientists say will only become more frequent.
So, without any real effort to drop the talking points, our politicians – led by Turnbull – should just spare us the tease and don the togas, laurel headgear and sandals, and be done with it.

Links

• Red hot: NSW smashes February statewide heat records two days in a row
• Renewable energy the only source of new capacity despite blowback
• NSW Energy Minister pleads for help to avoid heatwave power blackout
• PM and ministers told wind not to blame for SA blackout

Plea To Politicians On Energy: Stop The Brawling

The Conversation - Michelle Grattan

Environment Minister Josh Frydenberg with a lump of coal during Question Time. Mick Tsikas/AAP

Eighteen groups ranging from business energy users and suppliers through to the union movement and environmental advocates have issued a plea for political leaders to “stop partisan antics” and work together to achieve energy reform.
The appeal comes as three conservative state oppositions – in Victoria, Queensland and South Australia – promise that in government they would scrap independent state renewable energy targets in favour of a single national approach.
The groups’ statement follows the current hyper blame game in the debate about South Australian power failures, the role of renewables there and elsewhere, and the way forward to a more secure national system.
The Turnbull government has used SA blackouts to attack the Weatherill government and target Labor generally over the ALP’s strong commitment to renewables.
Energy policy is likely to feature heavily again in this parliamentary week, in the wake of the heat wave.
Malcolm Turnbull continued his partisan note in welcoming the state oppositions’ announcement. “The result of unrealistic state-based targets has been huge power bills for families and businesses and unreliable supply,” he said.
“Bill Shorten wants to adopt South Australia’s failed ideological experiment which will lead to even higher power bills and more blackouts.”
In their statement the groups say: “There is simply no room for partisan politics when the reliability, affordability and sustainability of Australia’s energy system is at stake.
"The status quo of policy uncertainty, lack of co-ordination and unreformed markets is increasing costs, undermining investment and worsening reliability risks. This impacts all Australians, including vulnerable low-income households, workers, regional communities and trade-exposed industries.”
Those signing the statement include the Business Council of Australia and the Australian Industry Group as well as the Australian Energy Council and the Energy Users Association of Australia.
The groups say “finger pointing” will not solve Australia’s energy challenges.
“More than a decade of this has made most energy investments impossibly risky. This has pushed prices higher while hindering transformational change of our energy system. The result is enduring dysfunction in the energy sector.”
Urging a “mature” debate, the groups say reform cannot happen without federal and state agreement “and policies can’t last and motivate investment without broad cross-party support”.
Politicians, federal and state and across the spectrum, need to come together to find solutions, backing and working with the Finkel review into the future security of the national electricity market, the groups say.
After the preliminary report of the Finkel review gave a favourable mention to an emissions intensity scheme Turnbull, under pressure from the conservatives in his ranks, quickly ruled one out.
The groups’ statement says: “As the preliminary report of the Finkel review correctly notes, many of the technological, economic and consumer trends transforming our energy systems are irreversible. Policy and market designs need to evolve if investors are to deliver the energy services Australians require at a price they can afford. A raft of reforms are needed to encourage and support flexibility throughout the system.
"The next stage of the Finkel review should be an opportunity to explore these possibilities and develop a comprehensive and integrated suite of reforms. Policy should be implemented promptly with broad based political support.”
The full list of groups is: Australian Aluminium Council, Australian Conservation Foundation, Australian Council of Social Services, Australian Council of Trade Unions, Australian Energy Council, The Australian Industry Group, Australian Steel Institute, Business Council of Australia, Cement Industry Federation, Chemistry Australia, Clean Energy Council, Energy Efficiency Council, Energy Networks Australia, Energy Users Association of Australia, Investor Group on Climate Change, St Vincent de Paul Society National Council, The Climate Institute, and WWF Australia.

Political donations reform
Opposition Leader Bill Shorten will introduce a private member’s bill on Monday for reform of political donations.
The legislation would:

• reduce the donation disclosure limit from the current level of $13,200 (indexed to inflation) to a fixed $1000;
• prohibit foreign donations;
• ban “donation splitting”, where donations are spread between different branches of political parties and associated entities to avoid disclosure;
• ban anonymous donations of more than $50;
• link public funding to campaign expenditure; and
• Introduce new offences and increased penalties for abuses of the political donation disclosure provisions.

The opposition says it is pursuing the issue of real-time disclosure through the parliamentary committee on electoral matters.

Links

• Energy policy: no room for partisan politics, 18 groups tell government
• Scott Morrison brings coal to question time: what fresh idiocy is this?
• 'Clean' coal power plants: Matt Canavan hints at government subsidy
• Coalition's renewable energy target won't last forever, says Turnbull
• Tony Abbott rebuffed after attacking Turnbull government on renewable energy target
• Australia’s conservative government fiddles on climate policy while the country burns
• Australian unions call for 'just transition' from coal-generated electricity
• Once the storm settles, the real picture emerges of government's energy goals
• Letter signed by 154 Australian experts demands climate policy match the science

Prime Minister Malcolm Turnbull And Ministers Were Told Wind Not To Blame For South Australia Blackout

Fairfax - Mark Kenny

Turnbull government statements blaming last year's South Australian blackout on its high renewable energy target ignored confidential public service advice stating that it was not the cause, according to emails obtained under freedom-of-information rules.
With a febrile debate over renewable energy versus coal-fired generation suddenly raging in Canberra, the revelation is set to undermine the Coalition's energy messaging and shatter confidence in its call for investment certainty through sober debate and bipartisan policy solutions.

Statements from Prime Minister Malcolm Turnbull's government blaming 2016's South Australian blackout on the state's high renewable energy target ignored confidential public service advice. Photo: Alex Ellinghausen

Advice to the government dated September 29, 2016 – the day after the whole of SA went black following a devastating storm – suggested the problem had not been the state's high reliance on wind generation, but rather because key parts of its electricity distribution network were wrecked during a severe weather event.
An email trail shows among other things a senior official from Malcolm Turnbull's department seeking an explanation for the blackout at 8.31 on the evening of the storm.
Another from 7.20 the next morning outlines subsequent discussions including a 5am phone hook-up involving departmental and political staff.
That email, sent to Prime Minister Malcolm Turnbull's own officials and others, conveyed the first-blush assessment of the blackout including advice gleaned from the Australian Energy Market Operator: "There has been unprecedented damage to the network (ie bigger than any other event in Australia), with 20+ steel transmission towers down in the north of the State due to wind damage (between Adelaide and Port Augusta). The electricity network was unable to cope with such a sudden and large loss of generation at once. AEMOs advice is that the generation mix (ie renewable or fossil fuel) was not to blame for yesterday's events – it was the loss of 1000 MW of power in such a short space of time as transmission lines fell over."
Yet within hours of the calamity the Turnbull government was capitalising on the blackout, suggesting it was a function of the state's unsustainably high quotient of wind generation which had failed to keep working in the conditions.
Deputy Prime Minister Barnaby Joyce led a chorus from Canberra about the state Labor government's "unrealistic" energy policies and was quickly joined by other senior ministers including Energy and Environment Minister Josh Frydenberg and Mr Turnbull.


How did SA end up in darkness?
Find out what led to the South Australian blackout as Energy Ministers meet to discuss the fallout and renewable energy targets.

"Even if there is a major storm, it should not be the case that you have a major blackout across a whole state," Mr Joyce told ABC News Radio that morning.
"There is a lot of effort that has gone on in South Australia about their renewable energy target. Maybe if the same competent effort went into actually making sure that an event such as this, a storm such as this – and another storm like this will, at some stage in the future, happen again – is there the capacity to handle it."

Advice to the government dated September 29, 2016, suggested the South Australian blackout had not been because of the state's high reliance on wind generation. Photo: Supplied

By that evening, Mr Turnbull was sending a similar message on the 7.30 program: "These intermittent renewables do pose real challenges," he said.
"Now, I regret to say that a number of the state Labor governments have over the years, set priorities and renewable targets that are extremely aggressive, extremely unrealistic, and have paid little or no attention to energy security."

Illustration by Matt Golding 

Last week, another blackout in South Australia knocked out about 90,000 premises during an extreme heat event. The energy blame game intensified, even though the evidence again suggests there was adequate supply in the form of gas turbine generation, sitting idle, as the wind contribution fell to just 2.5 per cent.
Labor's spokesman on climate change and energy Mark Butler said a "hysterical" Mr Turnbull had been caught "playing politics with a very deep crisis enveloping our energy system".
"Recent events have shown that price spikes and supply shortages are hitting all states, including those with low levels of renewable energy and very high reliance on coal power," he said.
Australia Institute executive director Ben Oquist, whose progressive think tank filed the FOI application, said it was regrettable that the government had acted politically despite being cautioned to wait.
"AEMO had told federal public servants and political advisers that renewable energy was not to blame for the blackout. But instead of informing the people of South Australia of this fact, both the Energy Minister and Prime Minister chose to push a false narrative about wind power," he said.
"Here we see frank and fearless departmental advice being ignored when it didn't suit a political agenda."
As recently as Sunday, Industry and Innovation Minister Arthur Sinodinos called for less politics in the energy debate, during an appearance on Insiders.
"What industry is saying to us is they want certainty over a lower emissions future ... but if industry wants certainty, there has to be a way of achieving bipartisan policy around this because we are talking about investments which take 20, 30, 40 or 50 years," he said.

Links

• Strange bedfellows urge politicians to ditch 'partisan antics' on energy
• What's with the attacks on renewables Mr Turnbull?
• Warning of future blackouts as politics rules energy debate
• 'Clean coal' would push up power bills more than wind, solar or gas: analysts
• PM's coal sell fails to convince
• Government killed emissions scheme despite advice it could make power cheaper
• US Republican spreading the conservative case for climate action