Antinuclear

Grattan Institute”s misleading attack on Solar Feed-in Tariffs

The new Grattan, FOOT OFF THE GAS:GRATTAN WRONG ON SOLAR WRONG ON FEED-IN TARIFFS, Beyond Zero Emissions,   6 Feb 2012 Institute report “No quick fix for Australia’s future energy challenge” contains misleading comparisons, flawed analysis and glaring omissions on vital energy issues confronting Australia.

#1. The report makes a misleading comparison between the cost of wholesale fossil fuel electricity and the cost of solar photovoltaic electricity which currently competes in the retail electricity market and not the wholesale market.

“We do not expect a suburban Woolworths to compete with food prices at the Footscray Wholesale Fruit and Veg market. Yet this is what the Grattan Institute has done by ignoring the differences between the wholesale and retail electricity markets” says Matthew Wright,
Executive Director of Beyond Zero Emissions. “Rooftop Solar photovoltaic has halved in price in the last 24 months. This is a staggering cost reduction, and is in stark comparison to rapidly increasing rising gas prices”.

#2 The report claims that there are no viable energy storage options for renewable energy.

Matthew Wright explained that the Grattan Institute report’s conclusions “ignores Solar Thermal Power (Molten Salt Power Towers with integrated thermal storage tanks). It ignores this game-changing technology, already commercially deployed in baseload, intermediate and peaking configurations in Spain and under construction at a number of sites in the US. This technology is commercially available, off the shelf and ready for deployment in Australia. Rapid cost reductions have been projected by the International Energy Agency, the US Department of Energy and others. Matthew Wright went on to say “Furthermore Renault-Nissan’s CEO is claiming that its Li-On battery technology for cars that can be used with Rooftop Solar Photovoltaic could be as low as $190 per kilowatt hour by 2014.”

#3. The report discusses the best way to undertake the “elimination” of Feed-in-Tariffs in Australia.

Matthew Wright laid bare this major error in the Grattan Institute Report by explaining “Feed-in-Tariffs do not distort the market as suggested by the Grattan Institute. What’s more, the global experience clearly shows they are more effective than a carbon price in driving
the deployment of appropriate renewable energy technologies and have achieved more carbon abatement to date than carbon pricing schemes. If Feed in Tariffs were eliminated as suggested by the Grattan Institute, Australia would lose one of the only two successful, significant scale, zero carbon policies it has. Last year Feed-in-Tariffs achieved over $5 Billion dollars in new energy investment in Australian distributed solar, more than was invested in any other electricity source.”

Furthermore, Feed-in-Tariffs have achieved; significant lowering of the country’s wholesale electricity costs; a real reduction in carbon emissions; and have driven down the cost of future installations of the technology.”

#4 The report asserts Australia needs to map its renewable resource which is a diversion rather than just getting on with the job of deployment which is where the wind and solar industries are at right now.

Matthew stated “It is ridiculous to assert that mapping of renewable resource is the major requirement or enabling renewable energy sources as suggested by the report. Industry already knows where the wind and solar resource is, what it needs is government to legislate
transmission network extensions to reach it.”

#5 The report asserts Australia has a natural advantage for Geothermal and Carbon Capture and Storage (CCS) electricity generators

“Geothermal and CCS are not, as claimed by the report, natural advantages to Australia. CCS is not a natural advantage to anyone, as it has never been demonstrated anywhere pre or post combustion with coal fired or gas fired electricity generation, and many experts around the world agree that it never will. Geothermal in Australia is a low-value form of geothermal. Countries with a natural advantage in geothermal, such as New Zealand, USA, and Iceland, have conventional geothermal resources. Enhanced geothermal resources such as those
found in Australia are currently highly speculative achieving no serious projects anywhere the world over.

#6 The report suggests nuclear power is viable for Australia

Finally, Matthew Wright stated “For the Grattan Institute to suggest nuclear power as being viable in this country is ridiculous, to say the least. Take the experience of Areva in Finland, for an example of the continual challenges created by deploying nuclear in developed countries. Areva, the world’s biggest nuclear power plant technology company, has just announced a further year of delays with its construction of a third generation nuclear reactor in Finland. This one year delay adds to it already being five years behind schedule. This is after the project has gone US$ 4 billion over-budget and has seen the the exit of Siemens, the world’s second biggest power technology company, as a partner. On the other hand, wind and solar projects deliver guaranteed output, stable costs, have low technical risk, and a two to five year completion timeline.

The Grattan Institute’s report fails to acknowledge that in the near term (probable within 3-4 years) Solar will be competitive in the market, and in the meantime should be supported by Feed-in-Tariffs. It fails to acknowledge the commercial reality of baseload solar thermal plants that include storage. It fails to acknowledge that Feed-in-Tariffs have been the most successful policy mechanism for reducing technology costs and carbon abatement demonstrated anywhere in the world to date.

The Institutes fascination with fossil gas (coal seam gas, shale gas and conventional gas) is consistent with the position of Tony Wood’s (Grattan Institute, Program Director Energy) former employer Origin Energy which is set for windfall profits if it can achieve its aims to develop massive Coal Seam Gas resources across the eastern seaboard. It is also consistent with Grattan Institute’s principal sponsor BHP Billiton who have huge interests in Shale gas in the US and conventional oil and gas reserves in Australia. http://beyondzeroemissions.org/media/releases/foot-off-gas-grattan-wrong-solar-and-feed-tariffs-120206

February 6, 2012 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, solar, spinbuster | solar