Morrison government threatens to use Snowy Hydro to build gas generator, as it outlines ‘gas-fired recovery’ plan


Michelle Grattan, University of Canberra

The Morrison government has threatened to use Snowy Hydro to build a gas generator in the Hunter Valley if the electricity sector fails to fill the gap left by the scheduled closure of the Liddell power plant in 2023.

The threat comes as the government released its plan to place gas at the centre of Australia’s economic recovery, with a package of measures to “reset” the east coast market and “unlock” supply.

Scott Morrison and Energy Minister Angus Taylor said the electricity sector had to deliver 1,000 megawatts of new dispatchable energy to replace the Liddell power station before it closed.

“The Government will step up and back a new gas power plant in the Hunter Valley if the sector doesn’t replace Liddell’s capacity,” they said in an ultimatum to the sector.

“Snowy Hydro Limited is developing options to build a gas generator in the Hunter Valley at Kurri Kurri should the market not deliver what consumers need.”

The government had a long running battle with AGL over its determination to close the Liddell coal-fired power station, trying unsuccessfully to force it to abandon the decision.

Morrison and Taylor said the government’s Liddell taskforce had found closing the plant without adequate dispatchable replacement capacity could mean a 30% price rise over two years, or $20 per megawatt hour to $80 in 2024 and up to $105 per MWH by 2030.

Morrison said such rises were unacceptable – they would be a huge hit to families, businesses and job creating industries in NSW if the energy generated by Liddell wasn’t replaced.

“We won’t risk the affordability and reliability of the NSW energy system and will step in unless the industry steps up.

“To ensure we do not have a scenario without replacement, the government is giving the private sector until the end of April 2021 to reach final investment decisions on 1000 MW of dispatchable capacity, with a commitment for generation in time for summer 2023-24.”

In its announcement of its gas plan, the government says its proposed multiple initiatives will deliver affordable and reliable energy for households, business and industry, and shore up the energy grid’s reliability as renewables form an increasingly larger part of the energy market.

One part of the plan is the creation of an Australian Gas Hub at Wallumbilla in Queensland to bring users and suppliers closer together, delivering a transparent liquid gas trading system.

This is modelled on the Henry Hub located in Louisiana which is a distribution point on a natural gas pipeline system. It serves as the official delivery location for futures contracts.

The concept of a gas-led recovery is highly controversial. It has been strongly pushed by the chair of the government’s national COVID-19 commission Nev Power, and the government argues that gas is much lower in emissions than coal fired power.

But the promotion of gas is resisted by environmentalists, given it is a fossil fuel, and questioned by some in the investment community who doubt it will be possible to achieve gas prices low enough to make a major economic difference.

Outlining the “gas-fired recovery” plan Morrison, Taylor and Resources Minister Keith Pitt said: “The government wants the private sector to step-up and make timely investments in the gas market.”

But “if the private sector fails to act, the government will step in – as it has done for electricity transmission – to back these nation building projects. This may include through streamlining approvals, underwriting projects or the establishment of a special purpose vehicle with a capped government contribution”.

The government says the east coast market needs change because it is not delivering internationally competitive prices for Australian businesses and households.

International prices have fallen but this has not been reflected in lower long term contract offers for Australian customers.
There are also fears of a supply shortfall in the medium term.

Under the measures, new gas supply targets will be set with states and territories and a potential “use it or lose it” requirement will be enforced on gas licences.

The government aims to unlock five new gas basins beginning with the Beetaloo Basin in the Northern Territory and the North Bowen and Galilee Basis in Queensland. This will cost $28.3 million for the plans.

To avoid supply shortfalls, there will be new agreements with the three east coast LNG exporters with strengthened commitments on price.

The government will also “explore options” for a prospective gas reservation scheme “to ensure Australian gas users get the energy they need at a reasonable price”.

To improve the gas transport network the government will identify priority pipelines and critical infrastructure for a National Gas Infrastructure Plan (NGIP) worth $10.9 million . This will also highlight where the government will step in if private investors do not.

The regulations on pipeline infrastructure will be reformed to increase competition and transparency; competition will be further promoted by kick starting work on a secondary pipeline capacity market.

The government will work with the Australian Competition and Consumer Commission to review the calculation of the LNG netback price which provides a guide on the export parity prices.

It will also use the NGIP to develop customer hubs to boost competition and transparency for customers.

HERE ARE THE GOVERNMENT’S DETAILED MEASURES.

It will get more gas into the market by:

  • Setting new gas supply targets with states and territories and enforce potential “use-it or lose-it” requirements on gas licenses

  • Unlocking five key gas basins starting with the Beetaloo Basin in the NT and the North Bowen and Galilee Basin in Queensland, at a cost of $28.3 million for the plans

  • Avoiding any supply shortfall in the gas market with new agreements with the three east coast LNG exporters that will also strengthen price commitments

  • Supporting CSIRO’s Gas Industry Social and Environmental Research Alliance with $13.7 million

  • Exploring options for a prospective gas reservation scheme to ensure Australian gas users get the energy they need at a reasonable price.

It will boost the gas transport network by:

  • Identifying priority pipelines and critical infrastructure as part of an inaugural National Gas Infrastructure Plan (NGIP) worth $10.9 million that will also highlight where the government will step in if the private sector doesn’t invest

  • Reforming the regulations on pipeline infrastructure to promote competition and transparency

  • Improving pipeline access and competition by kick-starting work on a dynamic secondary pipeline capacity market.

To better empower gas consumers, it will:

  • Establish an Australian Gas Hub at our most strategically located and connected gas trading hub at Wallumbilla in Queensland to deliver an open, transparent and liquid gas trading system

  • Level the negotiating playing field for gas producers and consumers through a voluntary industry-led code of conduct, to be delivered by February 2021

  • Ensure Australians are paying the right price for their gas by working with the ACCC to review the calculation of the LNG netback price which provides a guide on the export parity prices

  • Use the NGIP to develop customer hubs or a book-build program that will give gas customers a more transparent and competitive process for meeting their needs.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

There’s a simple way to drought-proof a town – build more water storage



Inland towns need far more water storage.
Flickr/Mertie, CC BY-SA

Michael Roderick, Australian National University

The federal parliament has voted to funnel A$200 million to drought-stricken areas. What exactly this money will be spent on is still under consideration, but the majority will go to rural, inland communities.

But once there, what can the money usefully be spent on? Especially if there’s been a permanent decline in rainfall, as seen in Perth. How can we help inland communities?




Read more:
Recent Australian droughts may be the worst in 800 years


Let’s look at the small inland town of Guyra, NSW, which is close to running dry. Unlike our coastal cities, Guyra cannot simply build a billion-dollar desalination plant to supply its water. Towns like Guyra must look elsewhere for its solutions.

Running dry isn’t just about rainfall

“Running dry” means there is no water when the tap is turned on. It seems to make sense to blame the drought for Guyra’s lack of water. But the available water supply is not only determined by rainfall. It also depends on amount of water flowing into water storage (called streamflow), and the capacity and security of that storage.

While Perth has had a distinct downturn in its rainfall since the 1970s and has built desalination plants to respond to this challenge, no such downturn is evident at Guyra. Indeed, to date, the driest consecutive two years on record for Guyra were 100 years ago (1918 and 1919).

Long-term rainfall records for Perth (left) and Guyra (right). Dashed red line shows the trend and the full yellow line shows 600 mm annual rainfall.
Bureau of Meteorology

Despite the differences, there are some similarities between Perth and Guyra. As a rule of thumb, in Australia, significant streamflow into water storages does not occur until annual rainfall reaches around 600mm. This occurs as streamflow is generally supplied from “wet patches” when water can no longer soak into the soil. Thus, if annual rainfall is around 600mm or below, we generally anticipate very little streamflow.

While Guyra has seen some rain in 2019, it is not enough to prompt this crucial flow of water into the local water storage. The same is true for Perth, with annual rainfall in the past few decades now hovering close to the 600mm threshold.

Importantly, rainfall and streamflow do not have a linear relationship. Annual rainfall in Perth has declined by around 20%, but Perth’s streamflow has fallen by more than 90%.

With little streamflow filling its dams, Perth had little choice but to find other ways of increasing its water supply. They built desalination plants to make up the difference.

Let’s return to Guyra in NSW and the current drought. The rainfall records do not indicate there is a long-term downward trend in rainfall. But even without a rainfall trend, there are still dry years when there is little streamflow. Indeed, in Guyra, the rainfall record shows that, on average, the rainfall will be 600mm or less roughly one year out of every ten years.

Build more storage

So how do the residents of Guyra ensure a reliable water supply, given that they cannot build themselves a desalination plant?

Well, in this case, you can simply get water from somewhere else if it is available. A pipeline is currently under construction to supply Guyra from the nearby Malpas Dam, and is expected to be in operation very soon.

But that’s not always an option. A made-in-Guyra water solution means one thing: expanding storage capacity.

Guyra can generally store around 8 months of their normal water demand (although of course demand varies with the seasons, droughts, water restrictions and price per litre).

To give a point of comparison, Sydney can store up to five years of its normal water demand, and has a desalination plant besides. Despite these advantages, Sydney residents are now under stage one water restrictions which happens when its storages are only 50% full. Yet, even when Sydney’s glass is only half-full, that city still has at least another two years of water left to meet the expected water demand even without using desalination.

By comparison, when water storages in Guyra are 50% full, they have less than six months normal water supply.

It is astonishingly difficult to find accurate data on small-town water supplies but in my experience Guyra is not unique among rural towns. There is a big divide between the water security of those living in Australia’s big cities compared to smaller inland towns. Many rural communities simply do not have sufficient water storage to withstand multi-year droughts, and in some cases, cannot even withstand one year of drought.




Read more:
Droughts, extreme weather and empowered consumers mean tough choices for farmers


Nature, drought and climate change cannot be blamed for all of our water problems. In rural inland towns, inadequate planning and funding for household water can sometimes be the real culprit. Whether Australians live in rural communities or big cities, they should be treated fairly in terms of both the availability and the quality of the water they use.The Conversation

Michael Roderick, Professor, Research School of Earth Sciences and Chief Investigator in the ARC Centre of Excellence for Climate Extremes, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Mangrove Forest Under Threat in Bangladesh


The world’s largest mangrove forest in Bangladesh is under threat from a proposal to build a coal-fired power plant.

For more visit:
http://e360.yale.edu/feature/a_key_mangrove_forest_faces_major_threat_from_a_coal_plant/2704/

New Zealand: Milford Sound Tunnel Axed


The links below are to articles reporting on the axing of a plan to build a road tunnel to Milford Sound in New Zealand.

For more visit:
http://www.stuff.co.nz/national/politics/8930108/Government-axes-Milford-Tunnel
http://www.scene.co.nz/minister-blocks-tunnel-plan-for-milford-sound/310712a1.page

Netherlands: Building the World’s Largest Electric Vehicle Charging Network


The link below is to an article reporting on the Netherlands’ plans to build the world’s largest network of electric vehicle charging stations.

For more visit:
http://inhabitat.com/abb-to-build-worlds-largest-network-of-electric-vehicle-fast-charging-stations-in-the-netherlands/

Recycled Ink Cartridges to Build Bicycle Track in the West MacDonnell National Park


Here is a great recycling news story coming out of the Northern Territory in Australia – a 170km bicycle track is being built between Alice Springs and Simpson’s Gap in the West MacDonnell Ranges National Park, out of recycled plastics, including plastic from used printer ink cartridges. The bike track is a popular tourist destination in and around Alice Springs, so this upgrade is certainly a welcome one – especially given it that is being made out of recycled plastics. Full marks to the Northern
Territory government on this project – great news for all.

http://www.engadget.com/2010/06/13/recycled-ink-cartridges-used-to-build-bike-path-in-australian-na/

Visit Repeat Plastics Australia at:

http://www.replas.com.au/index.shtml