This budget reflects the pessimistic view of solar and wind industries held by Martin Ferguson, Minister for Resources and Energy. There is $60 million additional funding for emerging geothermal and wave technology, regulation of renewable energy markets but mostly this budget shifts big money out beyond the forward estimates or cuts it outright.
Solar Flagships: $850 million remains in the forward estimates from the promised $1.5 billion for building large scale solar PV and solar thermal power stations. This is a hit on Australia’s solar sector of $650 million over forward estimates. (Funds remaining in Solar Flagships are 2011/2 $163.3 million, 12/13 $163.1 million, 13/4 $241 million, 14/5 $283 million.)
Previous cuts announced to pay for natural disasters cut $150 million and another budget line has cuts of $220 million. In theory the rest of the $1.5 billion program “will be restored beyond the forward estimates”, which means little if anything.
Connecting renewables is necessary for the growth of the renewable sector, because our grid is old and was designed around coal-fired electricity. Most developed countries are putting billions into “smart grids” that facilitate renewable energy and energy efficiency. This budget has $1.4 million over three years to support design work on how to connect renewables to the grid. This is a key election commitment that has turned into failure.
National Solar Schools grants up to $50,000 for solar panels, solar hot water, water tanks and other measures to save energy and water in schools. This has been cut by $156 million and will see the program close early, on June 30, 2013. The remaining funds will now be directed to prioritise spending in poor and remote areas, in accord with new guidelines due out on budget night.
Renewable Energy Venture Capital Fund is necessary for innovators who want to take their innovation to market in Australia. In the past, solar researchers such as Dr Green and his student Dr Zhu took their intellectual property to the US and China, because Australia would not invest in them.
This budget cuts $70.2 million, leaving $60 million in forward estimates up to 2014-15 (with another with $3.8 million to Australian Centre for Renewable Energy to administer the grants). These funds will provide equity to support support private capital for development and early commercialisation of renewable technology
Emerging renewables is an election commitment to support new technology especially geothermal and ocean energy. This is code for Ferguson’s lack of faith in existing, proven solar and wind technology. He holds on to the notion that renewable energy is in its infancy and will not be able to carry base load until new technologies are invented (or perhaps brought to us by Dr Who).
The good news is that the program will provide $102.2 million grants, an increased from the $40 million promised.
Renewable energy target regulation is necessary to manage the trading of renewable energy certificates, which are the basis of the market in clean energy in Australia.
There is a new $59 million over five years to create an inspection regime for solar PV panels and otherwise support the Office of the Renewable Energy Regulator. This will include $6.6 million for new information technology for the regulator. The regulator is being made to increase its cost recovery through administration of the renewable energy target. It will increase the registration fee for transactions involving small scale energy certificates from eight to 47 cents, raising $14 million over four years.
There will be public and industry consultation about increasing the cost recovery measures for the regulator. These are good measures because the solar PV industry needs strong regulation to maintain safety and quality.
Solar Cities fosters community projects in seven cities, to provide renewable energy demonstration programs. This budget reallocates $13.7 million over two years to restore underspends from earlier years.
This puts a great deal of pressure on carbon tax negotiations. Australia’s renewable industries already employ 8000-10,000 and turn over $2 billion. They deserve proper support, to help cut energy costs, employ Australians and reduce emissions.
I don’t think it’s a matter of “He doesn’t believe in renewable energy”.
He doesn’t work for Australian voters, he works for the ‘Greenhouse Mafia’ .
Whilst ever Gillard (and we the voters) allow this to continue, forget any progress or committed funding for renewables. Same thing applies to the shadow minister if Abbott gets in.
Howard, under the influence of Bush, facilitated the ‘extractive industries’ and their lobbyists to take control of Australia’s policies on energy and climate change and make sure it doesn’t negatively affect their bottom line.
If that sounds like paranoia or fantasy, watch the ABC’s 4 Corners ‘Greenhouse Mafia’, Guy Pearse’s ‘High and Dry or Clive Hamilton’s ‘Scorcher’.
To see how ordinary Americans feel about what that has progressively done to democracy in the USA over the last 40 years , read Chris Hedges ‘Empire of Illusion’ or watch his videos on YouTube.com.
IMHO, we aren’t going to start to deal with the coming ‘Energy Crunch’, let alone climate change until we reclaim democracy in Australia. It’s not yet as bad as Hedges paints for the USA, but it’s well down their path already.
Thank you Chris, I will follow up some of your links. You should write a piece for Crikey or Rooted!
Your points about the carbon capture of Canberra by the Greenhouse Mafia sends a chill down the spine. It feels diabolically hard to get democracy working again.
Although I note that Opposition Energy spokes Macfarlane has said some critical things on both clean coal and coal seam gas, putting him to the left (the green?) of Ferguson. I think that Macfarlane has a better ability to be independent and rational than Ferguson, partly because he is not part of a union and Labor faction block that promotes group-think.
But yes overall I agree, the renewables industry gets a rough deal, thanks to the climate criminals.
As long as we have a Neanderthal in the ministry the Greenhouse Mafia will reign supreme. Ferguson should be sacked from that portfolio as he plainly is not operating with an open mind on renewables. He can hardly put two words together as it is.
Hey Niccolino & Chris – do you think this is a reason to establish a Green Bank?
The idea is to take all climate and clean energy programs out of the direct line of management of the Minister. They are rolled together under an independent ‘Bank’ that also raises bonds to pay for investment in RE, EE etc.
The Clean Energy Council is promoting the idea and perhaps the Climate Institute or ACF too.
One of the strong arguments in favor of the proposal is that an institution set up to make money from RE will be far more effective than a carbon-captured Energy Minister.
Gentlemen – your thoughts?
Well Dan,
I don’t know whether you’re up to date with the gas ‘fracking’ problems? If not here’s a good link: http://www.gasland.com.au
And here’s a quote from Bob Brown’s press release today: “Australia’s tired, old political parties today blocked a move by the Greens for a standalone Senate inquiry into the coal seam gas industry, Greens Leader Bob Brown said. In a split with the Liberals, the Nationals abstained.”
We have to watch what they do rather than listen to what they say. In both federal and state parliaments our two main political parties are trying to follow the US lead and give carte blanche to the gas mining industry.
This is despite the facts that they have been shown conclusively in the documentary ‘Gaslands’ that their ‘fracking’ process poisons underground water supplies.
The coal industry in NSW continues to be allowed to destroy prime agricultural land at a time when the scientists around the world, including our CSIRO are predicting global famine – is on the short term horizon – see ‘The Coming Famine” by Julian Cribb.
In the name of ‘Grow the Economy’ we continue to grow our exports of coal when we know that burning it in China and India to make electricity is killing us and the planet.
See also Richard Heinberg’s excellent 20 min presentation at Totness (original Transition Town) on the ‘End of Growth’ and its consequences for everyone. He does a great job of pulling together all the contributing factors into one cohesive story. Well worth watching……./Chris
http://richardheinberg.com/the-end-of-growth-presentation-in-totnes-uk
I guess it all depends on what we want to believe so that nothing has to change. …../Chris