The post Energy retailers are calling for tarriff reforms to fight solar appeared first on Darryn Van Hout.
]]>As solar power continues to gain popularity in many parts of Australia, the industry is facing challenges from the big power companies that are lobbying for tariff reform from Federal and State Energy Ministers. In effect what Big Business power companies want to do is charge extra to those that use solar energy.
Electricity networks believe tariff reform is necessary because under the present setup, solar users have an advantage over the power they access on the main grid. On the opposing side, solar energy consultant Nigel Morris said that “solar owners are being discriminated against.”
The major electrical networks maintain otherwise, claiming solar users are being too heavily subsidized. In an interview, John Bradley of the Energy Networks Association said his group wants to make sure storage and solar users “meet their fair share” of service on the network.
According to proponents of the tariff reform, changes will save households up to $250 a year and that 65% of customers are going to pay less. If the tariff reform does not go ahead, proponents say in 20 years, the cost of solar will be much cheaper and users will pay 40% less. Furthermore, they claim that homes without solar panels will pay subsidies up to $655 PA.
The cost to solar panels is getting cheaper and big energy retailers like agl energy are losing money.
However, solar energy advocates say the energy industry feels threatened by the advent of alternative energy and worried about facing an adversary. According to Electricity Economist Bruce Mountain, the electricity networks are losing money as more and more homes now prefer solar energy. Tariff reform lobbying, Mr. Mountain says, is an effort to “to get the revenue back.”
Not only is solar energy usage increasing in homes, but so too are the number of electric vehicles in Australia. As more homes start to store solar energy, more challenges for the electricity networks will come.
Currently the calls for tariff reform changes are being discussed by the Federal and State Energy Ministers. Even as the tariff reform issue is being tackled, observers say the solar energy industry should expect more attacks. Already, one of Australia’s market leading energy providers and the countries biggest coal energy producer AGL Energy, came out with a statement that the tariffs are a “scam” to protect solar powered homes.
The timing of the AGL Energy attack is somewhat odd because just a week before, the company announced that they were going to provide assistance to solar and solar storage. However, supporters of solar energy say this will only be the start of many, as growing acceptance of renewable energy impacts traditional energy companies.
A representative from a major solar energy company said that the proposal for tariff reform is an attempt to make up for the money they lose. Another industry observer said this will be just one of the many “strategies” power companies will use against the solar industry.
Even so, solar and renewable energy advocates say these actions won’t prevent the switch to solar energy. Solar Citizens National Director Claire O’Rourke said that blaming solar owners for the increasing power bills is “misguided to say the least”. According to O’Rourke, the reason why solar energy use is on the rise is because Australians want clean, sustainable and renewable energy.
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]]>The post Dr Karl distances himself from new Abbott government report appeared first on Darryn Van Hout.
]]>Karl Kruszelnicki, simply known as Dr Karl, is a famous science broadcaster who has seen a ton of backlash regarding his participation with the Abbott government’s inter-generational report campaign.
The report, released every 5 years, predicts how the country will function in 40 years time in terms of population size, life expectancy, public spending and the future size of budget deficits that may be experienced.
Dr Karl has appeared in the marketing and advertising for the report, which can be seen and heard on the TV and the radio, as well as can be viewed in various newspapers, social media platforms and such.
The campaign has caused a furore because it fails to address the risks which are imminent due to climate change. It has a limited focus on climate change and the effects that come with it. Many are in disbelief that a report that projects the future of the country forty years from now did not take into account climate change. That in itself is an insult to every Australian’s intelligence.
Due to the backlash received, Dr Karl has stated that he has received verbal abuse from almost all corners, especially via social media platforms, “Hate emails, hate Twitters that I am to blame for the one-quarter of scientists being fired from CSIRO, that I am to be blamed for somebody’s daughter having to pay a huge amount for her education for a science degree.”
In his defence, Dr Karl maintains that he had read only a small section of the report itself before agreeing to be a part of the advertising campaign due to the fact that the rest of it was under embargo.
“I did it on the grounds that it would be not for any political party but for the Government of Australia as a non-political, bipartisan, independent report,” he told the ABC’s AM program.
“I thought that people would know the difference between a report and a policy document.
“And this actually, as a report, seems to have some policy in it.”
The Dr has now come to the full realisation that he has put he’s name (and reputation) on the line due to associating himself with such a hit report which is very politically motivated and also completely ignores the devastating consequences of climate change on the whole.
“It should have acknowledged that climate change is real and we cause it and it will be messy.”
“I shouldn’t have done it if there wasn’t enough about climate change.”
Dr Karl has confessed that the only reason he wanted to be a part of the ads is because he enjoyed planning for the future while at the same time supporting aspects of the report, such as issues of ageing of the population and the impact that the end of the mining boom will have.
At the end of the day the old adage “ as long as everyone is talking about is, the its all good” comes to mind, because the previous IGR 1 (back in 2002) didn’t receive half as much media and social attention as this current one is receiving.
Dr Karl takes full responsibility of he’s actions, even though they may have been quite noble to begin with my referencing a famous Aesop Fable:
“The scorpion says to the frog: ‘Can you take me across the flooded river?’ And the frog says: ‘No, you’ll stab me and kill me’.”
“And the scorpion says, ‘No, I won’t do that because I’ll drown myself’. And the frog says: ‘Yes, you’ll drown.’ So the frog says: ‘Hop on my back’, takes him half way across the river and the scorpion stabs him.
“And the frog says: ‘Hey, you stabbed me, I’m going to die! And so are you! Why’d you do that? Are you crazy?’ And the scorpion said: ‘I can’t help it. It’s my nature.’
Photo by: Ruth Ellison on Flickr
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]]>The post The Past, Present, & Future Of Electricity In Australia appeared first on Darryn Van Hout.
]]>Let’s be honest, the cost of electricity has made a huge contribution to the high cost of living and the difficulties Australian families experience in balancing their family budgets. According to a survey carried out by Ernst & Young in October 2014, a third of all Australians missed a payment for their electricity usage in the last 12 months.
The fact of the matter is that Australians are hurting and power bills should no longer be a political opportunity for politicians to win votes but a serious concern necessitating realistically lasting solutions. In essence, not even the compensation for households that are least able to afford the rising power prices can have a long-term impact.
In the past five years, electricity prices have skyrocketed by as much as 40 per cent in some states of Australia. When you compare these statistics with other countries like Canada, the United States, the European Union, and Japan, Australian electricity bills are way too high as reported by the Energy Users Association of Australia (EUAA), something the Federal Government blatantly acknowledged but has failed to address.
Electricity prices in Australia over the past 25 years.
The significantly high power prices are generally considered to be fueled by three key factors: deregulation, infrastructure costs/network charges, and introduction of the carbon tax. Despite government efforts to mitigate the high cost of living pressures, electricity bills keep increasing. The good news is that the most sustainable solution to lowering power bills in Australia ultimately lies on the 1.3 million Australian household rooftops. One of Australia’s leading consumer care websites, Australian Solar Quotes*, reports that despite the withdrawal of political support, the uptake of rooftop solar panels is continuing to rise, even in the current economic climate. Is the trend a result of Australia’s earlier solar boom or do the good folks of Australia have little choice but to resort to solar power as an alternative?
According to the Australian Bureau of Statistics, one in five Australian households uses solar energy to power their electrical appliances. Even though the cost savings for investment in solar power are clear, this figure is still surprisingly low considering that the installation of a solar power system is a sure way to reduce a householder’s dependence on the grid with a zero power bill as a real possibility with the latest technological advances.
As mentioned, there are three main factors that result in high electricity prices in Australia. The first is network charges, which in fact account for up to 51% of the total cost of electricity. Next is the cost of transporting the high-priced, premium electricity across poles and wires. Lastly, let’s not forget the subsidies paid by Australians to support renewable energy also contribute to the high power costs. The introduction of the now scrapped carbon tax also had a significant impact on power prices, coming in at 9%.
Fierce competition among energy suppliers forms a vital part of the answer. Many of these companies are global, operating in export markets, and if their electricity prices are forced up, the consequences would be far reaching in terms of loss of jobs, investment, etc.
The federal government acknowledges that power bills are likely to keep rising due to the huge investments needed to maintain network infrastructure. This means that ever-rising electricity prices will still hurt Australian households and impact negatively on businesses.
As the debate about the factors driving up power prices wages on, renewable energy product manufacturers are busy developing new technologies to drive down electricity prices. With the emergence of innovative solar energy solutions such as lithium-ion batteries, solar storage batteries are poised to dramatically reshape the energy industry in Australia.
A study commissioned by UBS, a world-leading investment bank, reveals that solar plus storage is an economically sustainable and low-risk solution for Australian households. For instance, if one million Australian households invest $20 billion in solar storage systems today, this would translate to enough capital for setting up a new LNG export plant.
The emergence of cost-competitive solar storage batteries such as Tesla’s new storage battery is a real revolution for the Australian electricity industry. This advanced battery storage system is poised to have a great impact on utilities, depending upon on how they react. If they embrace it as an opportunity to reduce high power prices, they can provide zero-down solar and battery storage installations to their consumers, thus pushing down costs for Australian households. On the other hand, they can view it as a threat and actively oppose this being launched in the Australian market.
The Tesla Powerwall has the potential to make a huge impact in the global energy industry and is indeed a timely innovation. The lithium-ion battery is one-of-a-kind. It’s designed to enable rechargeable energy storage at residential levels that can be used for load shifting, backing up power for use during an outage, and enabling self-consumption at peak times.
The solar storage battery by Tesla is a step forward for the Australian energy market. As the storage battery is a cheaper (inclusive of the foreign exchange and shipping) and highly efficient option compared to the existing solar power systems in the domestic market, it’s likely to significantly reduce dependence on the grid with a relatively quick payback period.
The new Powerwall from Tesla’s leading US-based energy technology company is an easy-to-handle wall-mounted solar storage unit which can hold a maximum of 10 kWh, delivered at an average of 2 kWh each day. The solution to the high power prices to Australian consumers lies in this innovative solar battery technology.
The price of a 10kWh weekly cycling backup storage system will be $US3,500 and $US3,000 is the price for a 7kWh daily cycling Powerwall. This excludes the cost of inverter (which typically comes with the solar panel system) and installation costs. Everything together is approximately US$500 per kWh, which is way below the existing industry cost which ranges between $US1,000 and $US1,250/kWh. Clearly, there’s great potential for dramatic storage battery cost reduction in coming years, just as the cost of solar panels has plunged in recent years.
The Tesla storage battery’s cost will ultimately deliver power for about $6-8 cents per kWh to any solar system for every Australian household. The combined cost of the rooftop solar and Tesla’s lithium-ion storage will therefore be much cheaper when compared to the coal-fired power delivered via the national grid.
With the new technology, eliminating grid dependence will become a reality for Australian households and high electricity costs will be a thing of the past. Solar + batteries have already been embraced in areas with high electricity prices like Hawaii. Although at the crossroads with incumbent utility companies, Tesla’s solar storage battery has a bright future in the Australian market.
The lithium-ion batteries will see more Australian households maximizing the amount of self-consumption. At the traditional end of power generation, the existing business models based on coal-fired power stations and huge networks of wires and poles will be seriously challenged.
Solar + storage is particularly attractive in Australia due to its climate. The idea of generating one’s own electricity and storing it for use at a later time is attractive to Australian households. Solar, compared to other forms of power generation, is cost-effective and convenient with the only big constraint being the availability of adequate space for the panels.
The disadvantage of solar energy is that the sun reaches the panels for only a limited number of hours each day and solar power generation is inconsistent. The storage battery enables the power requirements and pattern of usage of the household to better match power generation.
Before the invention of Tesla’s lithium-ion storage battery, storage was relatively expensive and consumer unfriendly, mostly involving less efficient, heavy, lead-acid batteries requiring more space. However, lithium-ion batteries including Tesla’s PowerWall are changing that. With their costs likely to fall sharply in the near future, more and more Australian households will enjoy the unique features of these batteries:
It’s worth noting that Australian households are likely to enjoy reduced power prices through Tesla’s new technology only if the federal government and other stakeholders in the energy industry scale up production of lithium-ion battery housings, energy monitoring, storage battery management systems, and integrated manufacturing of solar energy components including inverters. Whether they take up that challenge, only time will tell.
This article was originally posted on CleanTechnica.com
The post The Past, Present, & Future Of Electricity In Australia appeared first on Darryn Van Hout.
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