Antinuclear

Clean energy representatives were shocked by the panel’s appointment as chief advisor and modeller of ACIL Allen, a consultancy seen as close to the fossil fuel industry, and whose highly contested research formed the basis of the coal industry’s attempts to dismantle the RET in 2012.

Not only will ACIL Allen do the modelling for the RET Review panel, some of the assumptions that will form the basis of that modelling have also stunned the clean energy industry, and been branded as a farce.

This includes an apparent refusal to measure the benefits of renewable energy – including the health benefits, job benefits, and the network benefits – which the panel has dismissed as “too hard to model” and little more than a “transfer of wealth”, presumably away from the coal generators and network providers. There is concern about how it will model the reduction in wholesale prices – the main complaint from the existing fossil fuel industry.

Around 50 people who attended the RET Review panel’s modelling forum at the Mercure hotel near Sydney’s international airport were also told that the modelling will assume that there will be no carbon price out to 2030, and will not factor in any abatement targets. In other words, it is assuming there will be no carbon restrictions on the sector for another two decades.

John Grimes, the CEO of the Australian Solar Council, echoed the thoughts of many who attended the meeting and were interviewed by RenewEconomy when he said it appeared clear that the RET Review will serve only to protect the vested interests in the current electricity market.

“I’ve got to say – this is much worse than we had anticipated,” Grimes said. “This entire review process needs to be revealed for the sham that it is … we can only conclude that the RET Review process is heading to a biased and predetermined outcome.

“Instead of making customer benefits the key measure of a successful energy market, this review is set to side with big business, giving little or no weight to the benefits of solar for householders, business and the community.

“Clearly any model that fails to consider a carbon price (in any form) up to 2030, in the face of international action on climate change, is negligent and lacks any credibility. “ The RET review was already controversial because of the Abbott government’s decision to by-pass the Climate Change Authority (which dismissed the ACIL Allen modelling and the coal industry’s protestations in its 2012 review), and appoint a panel led by climate change denierand pro-nuclear advocate Dick Warburton.

He will be supported by fossil fuel lobbyist and former ABARE chief Brian Fisher, and Shirley In’t Veld, the former head of WA’s biggest coal generator, Verve Energy. The secretariat will be housed in Abbott’s own department.

Clean energy attendees said they were shocked by some of the statements – including Warburton’s apparent ignorance that the Abbott government went to the election with a “million solar rooftops” commitment, as well as assumptions by the panel that the current 41,000GWh could not physically be met.

The panel reportedly claimed that no large renewable energy projects would be able to be built for another 18 months, and no more than 1,000MW to 1,200MW of wind capacity would be possible in a single year, making it impossible to reach the current target. Both these claims were reportedly vigorously contested by the representative of the Clean Energy Council.

However, it was ACIL Allen’s appointment that confirmed the worst fears of the renewable energy industry……….

Even the Murdoch-owned Business Spectator made a spectacular demolition of ACIL Allen’s research, pointing to its previous reports that claimed that carbon pricing would eradicate the LNG industry, would force the closure of all brown coal generators by 2020, its predictions that geothermal would account for 30 per cent of the Renewable Energy Target, and how on two occasions it grossly miscalculated the uptake of rooftop solar……..

the problem that the renewable energy industry faces – incumbents and ageing engineers and business people who reject the science, simply do not understand or accept that renewable energy sources can be effective and cost competitive, and cannot imagine an energy system any different to the centralised model that has dominated for the past 100 years, and/or who are merely seeking to protect their vested interests.

The problem is that not only do they now have the ear of the current government, they have their hand on the wheels – and their foot on the brakes. http://reneweconomy.com.au/2014/farcical-start-to-tony-abbotts-renewable-energy-review-14978