Embrace the renewable energy future James Norman and Simon O'Connor May 19, 2009
Australia can take a lead, and a profit, in renewable energy, write James Norman and Simon O'Connor.
AROUND the globe right now, massive change is under way that will have a seismic impact on the way we think about the energy we consume. From China, to Britain, to the US, the public is demanding that politicians show leadership in the march to a low-carbon future, and many governments are doing just that.
Last year, Al Gore upped the ante with his vision to re-power America on 100 per cent renewable energy within 10 years. That vision entails new high-paying jobs implementing massive change in infrastructure, rapidly moving away from the dirty coal industries and breaking US reliance on foreign oil.
US President Barack Obama's response to this bold plan? He "strongly agrees" with Mr Gore and believes that the US "cannot drill our way to energy independence, but must fast-track investments in renewable sources of energy like solar power, wind power and advanced biofuels, and those are the investments I will make as President."
In contrast, Australia is tinkering at the edges — staking our hopes for a greener future on the fraught carbon pollution reduction scheme (CPRS), a modest Renewable Energy Target of 20 per cent by 2020 and unproven clean coal technologies to green up Australia's coal industry.
There was some good news in the federal budget, such as $1.46 billion for the Solar Flagships program, $26.9 million for a new green skills program, $465 million for renewable energy research and $100 million towards a new smart grid — but, when stacked up against our US and British allies, these changes are very modest.
Moreover, the budget included several backward steps as far as reducing carbon levels in Australia is concerned — including renewed investment in the oxymoronic notion of clean coal, cutting the Green Loans program from $200,000 to $75,000 over five years and retaining subsidies that drive pollution such as the fringe benefits tax concession on company cars.
Big problems require big solutions, so here is a bold and audacious idea for Australia that would put us closer to the US in making the essential shift to a prosperous, low-carbon future.
What we need is a smart energy infrastructure fund, delivering on the promise of clean energy jobs in the tens of thousands, stimulating the economy out of this recession, and establishing Australia as a leader in green technologies and that in turn will drive long-term, export-oriented industry growth. Such a fund would invest in fundamentally changing the way we use and generate electricity.
The fund would back a smart grid So Australia becomes more efficient and flexible with its electricity use and better incorporates renewable energy sources such as geothermal and solar thermal.
A major part of this smart grid is smart metering, tied into the national broadband network for real-time energy demand information leading to lower peak electricity demand.
It was heartening to see the wisdom of establishing this smart grid reflected in the budget.
This will fundamentally cut Australia's reliance on a system of stand-by base-load capacity. In preparation for the next generation of electric and hybrid cars, part of the smart grid plan should be that it charges in off-peak times and works as an energy storage bank in peak times, once again reducing our need for base-load power.
The existing power grid should be expanded across Central Australia to tap the hot spots for renewable energy, including South Australia's Cooper Basin and its geothermal resources.
