Archived News for Energy Sector Professionals - September, 2011
Treasury has released a more detailed modelling of the impact of a $23 carbon price on household expenditure for the Clean Energy Future package announced on 10 July 2011.
The breakdown shows the estimated average price impacts across all households following the introduction of a $23 carbon price in 2012 13 by CPI subgroup.
The modelling takes account of the different inputs involved in generating the goods and services that make up each CPI subgroup, such as energy use and transportation, and estimates an average price changes across household expenditure categories from the introduction of the $23 carbon price.
Victoria has secured a number of separate long term contracts worth more than $2 billion after Premier Ted Baillieu witnessed the signing of the Declaration of Commitment between purchaser Qenos and suppliers ExxonMobil Australia and BHP Billiton to supply petroleum feedstock to the Qenos Altona plant.
South Korea has announced its plans to pass a law this year to help start carbon dioxide emissions trading by 2015, a plan opposed by manufacturers who say it will increase costs and make exports less competitive globally.
Mr Park Chun Kyoo director general of the Presidential Committee on Green Growth overseeing climate change policy said that the National Assembly is expected to pass by December a bill for the proposed emission trading scheme or ETS.
Ms Victoria Cuming, senior analyst at Bloomberg New Energy Finance in London said that "Prospects for the bill appear quite healthy as it has backing from the ruling and opposition parties."
South Korea will become the third in Asia Pacific to tax polluters after Australia and New Zealand. South Korea has pledged a 30% reduction in emissions from expected levels by 2020 and offered tax breaks to companies including POSCO and Samsung Electronics Co to pollute less and use renewable energy.
Mr Park said that South Korea is taking a step by step approach to implement the ETS. He added that "We hope to give a clear signal to companies that our binding commitments will continue."
Australia plans to impose a price on emissions from next July before shifting to a cap and trade system three years later. New Zealand already has an emissions trading program in place.
The Korea Chamber of Commerce & Industry, which counts steelmaker POSCO and Samsung Electronics among its 120,000 members, and Federation of Korean Industries have asked the government to delay implementing the plan on concern that higher costs will result in loss of market share to rivals from countries that don’t either tax or cap emissions.
According to data from state owned Korea Energy Management Corporation, which is tasked with emissions reduction and promoting renewable energy, companies may face an additional KRW 5.6 trillion of costs if ETS is implemented.
According to the Korea Economic Research Institute, major industries including steel and petrochemicals stand to lose about KRW 12 trillion of sales.
South Korea, the world's ninth largest greenhouse gas emitter, announced its voluntary goal to reduce green house gas emissions blamed for global warming at Copenhagen in December 2009. The following year the government introduced a plan to set targets for the biggest polluters.
The government is in talks with 471 polluters ranging from factories, buildings and livestock farms that produce at least 25,000 tonnes of carbon dioxide a year to impose reduction targets by the end of September. These emitters generate about 60% of the country’s overall greenhouse gas emissions.
Mr Park said that "We will continue our binding commitments domestically to meet our pledges to the world." He added that South Korea's emissions may fall after peaking in 2014 if the nation pursues its reduction target by 2020.
He said that the government has been providing tax and financial incentives to encourage companies to cut their emissions, including feed in tariff since 2002. It is spending KRW 1 trillion in 2011 on renewable energy, including the KRW 395 billion for feed in tariffs or preferential payments, to solar, wind and other renewable energy projects.
The tariffs will be replaced with a 2% renewable portfolio standard or RPS, starting 2012. The country's 14 power generators and other energy producers would be required to derive a fixed quota of their energy output from renewable sources, including solar and wind.
A new partnership between the University of Newcastle and Hunter TAFE has been announced to further the development of joint capabilities in research, training and related services.
The Federal Government has announced an inquiry by the Productivity Commission into the regulation and policy framework that would best enable effective climate change adaptation.
Scientists at the CSIRO are researching long-term wind speed changes with an eye to gain better understanding for the wind energy sector and reduce risk for generators in a changing climate.
The Federal Government has announced $28 million in funding to address the emerging critical skills shortages in the resources, construction, infrastructure and renewable energy sectors.
The National Electrical and Communications Association has become the latest organisation to urge Federal Intervention to stabilise the country’s small scale solar industry.
Mining giant Rio Tinto has announced plans to invest a further $816 million in the company’s Pilbara iron ore project. The spending will be directed toward the company’s integrated power and gas network.
Prime Minister Julia Gillard has introduced the Federal Government’s carbon tax legislation to Parliament, saying that the legislation will lead to reducing the country’s carbon production while stimulating the economy and creating jobs.
The global wind power industry is beginning to pick up pace in both the developed and developing worlds, according to a report released by the World Wind Energy Association.
The clean energy industry’s most notable figures and projects have been rewarded for their contribution to industry growth and success at the recent EcoGen 2011 Awards.
The Australian Energy Market Operator (AEMO) has released its Two Year Outlook (PSA) report into the expected impacts on medium term power system security and reliability.