COMMUNITY RENEWABLE ENERGY IN AUSTRALIA

In 2015 the Federal Coalition and Labor parties agreed to a 2020 renewable energy target of 33,000 gigawatt-hours for Australia. This would contribute around 23% of the nation’s energy requirements.

In order to reach the target  the Clean Energy Council, the industry body for clean energy, estimates that a further 6000 megawatts of renewable energy generation will be needed – which would require the investment of about $10 billion.

While investment in large-scale projects should provide the major part of the increase, there is the potential for community energy to assist in reaching the target.

What is community energy? 

According to Nicky Ison and Ed Langham (University of Technology, Sydney): “Community energy projects are those in which a community comes together to develop, deliver and benefit from sustainable energy. They can involve energy supply projects such as renewable energy installations and storage, and energy reduction projects such as energy efficiency and demand management. Community energy can even include community-based approaches to selling or distributing energy."

Community energy is an important contributor to the national energy requirements in Germany, Denmark and Britain.  All of these countries are way ahead of Australia in the generation of renewable energy and community energy projects.

In 2015 Germany reached 32% renewable energy. It has a target of 40% to 45% by 2025.  It has around 850 energy cooperatives and almost half of its installed capacity is owned by households, communities and farmers.

Community energy projects are being developed in Australia.

Hepburn Wind is an example of a project that has been in existence for some years.  Established in 2007, it is the nation’s first community wind farm.  Located at Leonards Hill about 100 km north west of Melbourne it is a 4.1 megawatt operation with two turbines which produce enough energy for over 2000 homes.

Another example is Repower Shoalhaven in the Nowra district of NSW. Its first project was a 99 kilowatt community solar system installed on the roof of the Shoalhaven Heads Bowling and Recreation Club. This project was 20% funded by the bowling club and 80% by community shareholders.

In addition to communities becoming involved in renewable energy generation, the first community renewable energy retailer - Enova Energy - is setting up in the NSW Northern Rivers area and should be commencing its retail operation in the next month or so.

In recent years there has been increasing interest in community energy in Australia. The Coalition for Community Energy has further information on its development.

      

NORTH COAST CONSERVATIONISTS CONDEMN RENEWABLE ENERGY TARGET AGREEMENT

The North Coast Environment Council (NCEC) and the North East Forest Alliance (NEFA) have condemned the agreement on the Renewable Energy Target (RET) reached by the Liberal-National Party Federal Government and the Federal Opposition Labor Party because of the inclusion of biomass (timber) as an electricity source in the target.

The timber to be burnt for power is claimed to be forest "waste". However, the two conservation organisations believe that this decision will lead to further unsustainable logging and decimation of native forests.

"We know from nearly 50 years experience of woodchipping that the logging industry views everything except A Grade sawlogs as 'waste'.  So the likelihood of intensive damaging logging has just got worse," said NCEC spokesperson Susie Russell.

"The renewable industry didn't want this. They know that not only will it damage their brand, but that it steals from the limited funds available to kickstart renewable energy projects, as well as cheating and effectively lowering the Renewable Energy Target as energy created from this dirty, high emission and unsustainable source will be counted in our fight to decrease greenhouse gas pollution."

She  added that consumers would be likely to be reluctant to pay more for renewable energy "if they have a reasonable suspicion that it is koala homes that are going up in smoke."

NEFA spokesperson Dailan Pugh said, "Burning trees is not carbon neutral."

"Feeding trees into furnaces for power is just as polluting and environmentally damaging as coal.  This needs to be clearly ruled out as a substitute for genuinely renewable power such as solar and wind."

He also pointed out that as well as the increased carbon emissions the increased logging would result in damage to biodiversity, soil and water catchments.

THE BIG THREE POWER COMPANIES AND RENEWABLE ENERGY

The renewable energy industry sector is still waiting on a Federal Government decision on the Renewable Energy Target (RET).  This is vital to the health of an industry which has been losing investment because of uncertainty about its future.

As the mining boom eases and unemployment increases, it would make sense for the Government to promote a clean industry which already employs many Australians and has the potential to employ many more if the right incentives are in place.  The fact that it seems determined to ignore both the employment and climate positives of an expanding renewables sector suggests a "dinosaur" ideological mindset.

Late in March John Hewson, former Liberal Party Leader, showed his concern about the situation of the Australian renewables industry. He delivered a stinging attack on Australia's three major power companies – Origin, Energy Australia and AGL.  

Hewson was concerned at the part these three, who control more than 70% of the energy retail market in Australia, are having in thwarting the development of renewable energy . He believes that these companies' influence encouraged the Federal Government's inquiry into the RET which was headed by climate sceptic Dick Warburton.   Unsurprisingly the inquiry recommended the cutting of the RET, something the Abbott Government has been determined to pursue despite its pre-election promise to keep the RET at 41,000GWh.

According to Mr Hewson the big three retailers claim to support renewable energy while they are lobbying to undermine it.  He is also concerned that they have been "getting away with screwing households by hitting customers with almost obscene profit margins as energy retailers."

He said, "But here's the good news.  The Australian public, the vast majority of us who support cleaner and cheaper power from renewable energy and are opposed to dirty coal and damaging coal seam gas, have the ability to reclaim control over our public policy.

"In order to stop vested interests like Origin, AGL and Energy Australia who have much to gain by halting the growth of renewable energy, all we need to do is switch our energy provider to a company backed by 100% renewable energy."

            - L Blain

This article was published in the "Voices for the Earth" column in The Daily Examiner on April 13.

THE RENEWABLE ENERGY TARGET IS IMPORTANT

The Renewable Energy Target (RET) is an important component of government policies which provide support for and encourage the development and expansion of clean energy - renewable energy - in Australia. Moving away from energy produced by fossil fuels is essential in reducing carbon emissions and combatting climate change.

The RET which was originally supported by both major federal parties is under threat.   The Abbott Government, influenced by calls from the fossil fuel industry, conventional energy generators and those who are unconvinced about the threat of climate change, wants to cut the target.  It has only been prevented from doing this because it lacks the numbers in the Senate.  However, it is continuing to negotiate with senators in the hope of getting the required numbers. 

The Government's RET policy is extremely short-sighted.  

The Australian community has given strong support to renewable energy through the uptake of rooftop solar.  Over one million households have had solar installed on their rooftops as a result of the RET. This uptake of rooftop solar is continuing despite the cutting back of the very generous financial incentives of some years ago.  Part of this continuing trend obviously results from the declining cost of solar panels. 

 More than 24,000 Australians are employed in the renewable energy sector. In a country with rising unemployment, this is a significant figure.  If the RET is cut, jobs will be lost in this sector.  If the RET is maintained at its current level – or even increased– jobs will not be at risk and there is potential for increased employment in the sector. 

As it is, the current uncertainty about the fate of the RET is having serious consequences for the renewables sector. Over the last 12 months investments are down by over 30% across the sector and there are concerns that the industry may have trouble recovering even if a decision on the RET is favourable to the industry.

If the federal government is really interested in retaining and creating jobs and in combatting climate change it should be maintaining the RET at least at its current level.

            - Leonie Blain

This article was originally published in the VOICES FOR THE EARTH column in The Daily Examiner on 16 February 2015.

CLIMATE SCEPTIC LEADS FEDERAL GOVERNMENT REVIEW OF RENEWABLE ENERGY TARGET

Minister for the Environment, Greg Hunt, recently announced a review of the Government's Renewable Energy Target (RET).

 

The RET, set up under the Howard Government and expanded under Labor, mandates that 20% of energy will be derived from renewables by 2020.  This has obviously been a  bi-partisan approach to reducing greenhouse emissions. 

The target has already been reviewed a number of times but was again due for review under legislation this year by the Climate Change Authority (CCA) which the Abbott Government plans to abolish.  Although the Government has been unable to abolish the CCA as it does not have the numbers in the Senate, it has sidelined this independent body and set up its own review panel. The panel is led by businessman Dick Warburton, an acknowledged climate sceptic who is no friend of the renewable energy sector.  The background of the other three panel members has also not inspired critics with any confidence that the review will be even-handed.  

Indeed, comments by Prime Minister Abbott about upward pressures on electricity prices from renewables suggest the result he is looking for from the review.  Interestingly the Prime Minister does not mention the impact of improving infrastructure - the "poles and wires" component of the electricity grid - on the upward movement of prices.  This is yet another indication that the axe he wants to grind relates to climate change and clean energy and is not really about general concern about electricity pricing.

 In addition – and unsurprisingly - some of the major fossil fuel energy suppliers are calling for a reduction in the RET. They clearly do not want competition from clean energy sources which over time will become more competitive in price.

Those in the renewable energy sector are worried that the target will be reduced or even removed. They say that billions of dollars in investment will be significantly hurt if the target is substantially lowered.  Given the climate of uncertainty produced by comments from the Prime Minister and the apparent bias in the review panel, investment in renewables is likely to suffer even before the result of the review is announced.  

In an economic climate where jobs are going in manufacturing, logic would suggest that the Government would be anxious to encourage the expansion of the renewable energy sector.  The fact that it obviously has no interest in seeing this sector prosper suggests that ideology and not common sense is shaping policy. Is this lack of interest in renewables a sign that both Abbott and his Government still subscribe to the "climate change is crap" view?

The Government's review will present its findings to the Prime Minister's Department by mid-year.

The way this review has been organised – and the composition of the panel – is yet another indication of the Abbott Government's lack of concern about climate change.  There is certainly no sense of urgency about meeting the challenges we as a nation and our children and grandchildren are going to face in coming years.