Category: Archive

According to APA Business Development Manager Rudi Petrig, APA Group was not happy with the plan by eight retailers – under the REMCo Retail Market Rules in Western Australia – to change gas pricing rules under the national gas pool plan. APA Group (APA) owns, or has an interest in, over 10,000km of gas transmission pipelines in Australia, and owns the Mondarra gas storage facility in Western Australia. The document was published in January 2008. APA transports close to 40 per cent of Australia’s natural gas consumption

APA disagrees on gas price pool for WA: Petrig said APA "does not agree" with some REMco views on allocation, reconciliation and swing processes in Western Australia.

REMco logic not acceptable, says APA: REMCo had said there was

– "complexity of the allocation, reconciliation and swing rules;

– lack of understanding amongst the participants of how to correlate the impact of the changes to data with the final results;

– compounded by the departure of M-Co as a potential provider of training …"

APA disagrees: The allocation, reconciliation and swing processes relating to Western Australia were established in the manner as currently implemented in order that there be complete equality with the way in which balancing was to be dealt with between the two interconnection pipelines in Western Australia.

Complexity barrier: Petrig wrote, "If as a result of achieving this equality, the rules are "complex", then that is an inevitable consequence and the rules should be accepted rather than requiring them to be changed.

Lack of understanding barrier;"On the REMco comment – "lack of understanding amongst participants", APA suggested that this was " a question of having the right people with the necessary skills to undertake that activity and not a question of changing the rules because they are difficult to understand. Also the fact that the "departure of M-Co as a potential provider of training in this area" should not he used as the reason to change the rules, rather it is a matter of finding a replacement provider of training.:.

Operation of Swing Service; "APA does not agree with your comments relating to the operation of swing gas in Western Australia that "It is generally acknowledged that these rules represent an imperfect compromise to the commercial tensions that existed when the rules were being developed and that changes are needed…" APA understands that the concerns that have been expressed are concerns raised in the operation of swing in South Australia and not in Western Australia.

Price has so far not varied much: Petrig argued "In Western Australia it is only rarely that swing is significant and the cost is a one day only cost if the shippers all nominate two days later to account for their swing. There have been only a very few occasions where there has been a recurrence of significant swing and on those occasions it was caused because the shippers had not corrected their nominations."

Equality between the pipelines the key: Petrig said APA understands that the Gas Market Leaders Group is currently evaluating the potential for a Short Term Trading Market (STTM) to be implemented in Australia. APA also understands that this market is not contemplated to be introduced into Western Australia. Howver, should the operation of a STTM be introduced in Western Australia. APA would be concerned if the current issues regarding the treatment of equality between the pipelines relating to the Swing process which has been long and hard fought for by new market entrants, be undermined such that shippers would be potentially disadvantaged when using one pipeline or the other". APA supported the continuing operation of the current RRMR for Western Australia.

Reference: Rudi Petrig, Business Development Manager, APA Group, Review of REMCO Retail Market Rules, 1 August 2007.

Erisk Net, 18/1/2008

“It’s a very welcome boost and provides greater certainty and security for agricultural producers, other water-critical industries and the environment.

“The additional water for irrigators and industry will bring much-needed benefits for the economies of many regional centres, towns and villages in western NSW that have struggled during the drought” Mr Rees said.

Burrendong Dam is now at 20.4 per cent capacity providing enough water to allow:

o increased water allocation for town utilities, high-security licence holders, and domestic and stock users to 100 per cent of entitlement;

o general security licence holders to access 100 per cent of the water suspended in their 2007/08 accounts,

o approximately 13,000 megalitres of water suspended from the environmental water account to now be accessed

o water trading between Cudgegong and Macquarie licensees to re-commence.

“During the drought we were forced to suspend the Macquarie Cudgegong Water Sharing Plan, however, this extra water means we can now allow irrigators within the valleys to start trading water again,” Mr Rees said.

“This will provide much- needed additional water for production or funds to help ease the financial pressure many of the region’s irrigators are feeling.”

The Department of Water and Energy will review the water- sharing plan suspension in light of current and future water availability, and revise water allocations and restrictions as appropriate.

Acting Minister for Primary Industries, Linda Burney, added, “Recent rainfall across parts of northern NSW gives us renewed hope that in 2008 we may see a change in fortunes for the State’s drought-weary farmers.

“The Bureau of Meteorology’s rainfall outlook says the chances of exceeding median rainfall over January to March are between 60 to 75 per cent.

“The State’s summer crop area is well down on previous years, however, grain prices are very strong and with some more rain at the right time some farmers may secure a bumper harvest.

“These falls boosted sub-soil moisture levels and raised farmers’ spirits ahead of the 2008 winter crop which will see dual- purpose cereal crops planted as early as March.

“Compared to the last seven years we are off to a great start,” she said.

“Continuing rain to renew pasture growth and boost soil moisture is now needed to build on this. For example, at Forbes soil moisture levels for this time of year are the best seen since January 2000.

“And while the country looks dry, there is an amount of moisture under the surface in most parts that come March will help early establishment of winter crops.

“Summer rains will come at some cost. Croppers will be required to maintain fallow paddocks free of weeds to conserve precious moisture and soil nitrogen.”

The area of NSW in drought is 69.4%, 14.9% is marginal and 15.7% is satisfactory.

Futurologist W.Shawn Gray has raised the following list of specific questions that need to be answered.

1. The source of the 18 million tonnes increase in greenhouse gas estimate
2. How much expansion of Australia’s current renewable electricity generating capacity would be needed to cover that same "transformation of the transport system in Australia from gasoline based to electricity"?
3. Are those figures based on current gasoline consumption per current vehicle usage or are they projections to when such a swap could be rolled out?
4. In an ideal world what is the quickest such a roll-out could be feasibly accomplished?
5. What is the parallel case for diesel (road transport only) replacement by electricity also?

The Ebono Institute will follow the debate closely. Amory Lovins important contributions to the debate have helped shift the view of the US auto industry.

Greens MLC, John Kaye, provides the following detailed analysis

1. Petrol car running 100 km

Average fuel consumption is 10 litres (efficiency improvements such as hybrids in stop/start urban driving would only make electric vehicles look worse)

CO2 gas emissions = 26 kg (source: Aust Greenhouse Office)

Energy used (thermo-chemical) = 10 litres x 10 kWh/litre = 100 kWh

Energy delivered (mechanical) = 100 kWh x efficiency (= about 25%) = 25 kWh
 

2. Electrical car (same weight, deign etc.) 100 km

Electrical energy needed at power point = mechanical energy used/(battery and drive efficiency)

                                    = 25 kWh / 80% (approx) = 30 kWh (approx)

Greenhouse gas emissions = electrical energy x emission factor (kg CO2e/kWh) x distribution fac

(distribution factor = 1 + % losses in transmission and distribution)

Using AGO data for transport emissions (2005) and emissions factors, and using ABS data to get that 91% of transport emissions are from road I get:

The 1.03 distribution loss factor (i.e. 3% loss in distribution – note this does not include transmission) is very low (i.e. reduces the increase in emissions) but I was bending over backwards to be kind to elec vehicles.

Hence 18 million tonnes a year. It is admittedly an estimate but it is about the only one I can find . It is a low side estimate.

Beware of looking at US, UK or Canadian reports – their emissions factors are much lower (e.g. Canada 0.22 kg/kWh).

In answer to your questions

1# The source of the figures?

various as above

2# How much expansion of Australia’s current renewable electricity generating capacity would be needed to cover that same "transformation of the transport system in Australia from gasoline based to electricity"?

Need to reduce Greenhouse intensity to at least 0.85. If this reduction were being obtained by replacing coal with renewables, very very roughly we would need to take 15% of current generation and replace it zero emissions sources like renewables.

3# Are those figures based on current gasoline consumption per current vehicle usage or are they projections to when such a swap could be rolled out?

Based on 10 litres/100 km. Better fuel consumption would further disadvantage electric vehicles with respect petrol power

4# In an ideal world what is the quickest such a roll-out could be feasibly accomplished?

Not sure about "ideal world" – that’s quite subjective. You may have heard me say that if we really need to make change to survive and are not too fussy about markets and free flow of capital (i.e. if we are prepared to have market intervention and direction of capital) we can achieve an awful lot.

5# What is the parallel case for diesel (road transport only) replacement by electricity also?

Diesel is roughly 34% of total transport emissions and about 37% of total road emissions . I had just dealt with it as a similar substitution in my figures.

The Ebono Institute’s Ready Reckoner provides an overview of how various energy sources stack up and the relationship between global energy issues and your domestic consumption.

Foreign Minister Stephen Smith told India’s nuclear envoy Shyam Saran this week that the Labor party had campaigned prior to the November election against nuclear proliferation.

"We went into the election with a strong policy commitment we would not export uranium to nation states who are not members of the Nuclear Nonproliferation Treaty," Smith said after the meeting with Saran. "It’s a long standing commitment of the Australian Labor Party that we don’t authorize the export of uranium to countries who are not parties to the Nuclear Nonproliferation Treaty.

"India is a nation state that is not a party to the nonproliferation treaty. I don’t think there’s any expectation in the international community that it will become a member," he said.

India had successfully lobbied the previous conservative government under John Howard to reverse a ban on sales of the resource to India pointing to its excellent record in preventing proliferation of nuclear material and technology despite being a non-signatory of the N.P.T.

The Indian High Commission in Canberra referred to this record in a press release following the announcement of the Australian government’s decision.

"The special envoy, while noting the Labor government’s position in this regard, emphasized India’s impeccable record in nonproliferation, a record that has been universally acknowledged and appreciated," said the statement.

"While seeking Australian support in the N.S.G. [Nuclear Suppliers Group], India expressed the hope that when the nuclear energy market in the country opens up, Australia would also become a valued partner," it added.

The reversal of the Howard government’s decision has angered some of India’s media with the conservative Indian Express likening the Australian Labor Party’s left to India’s own "communists and peaceniks."

The editorial said: "Just as our communists can’t be made to see reason, there is no way of explaining to Labor’s disarmament activists that the N.P.T. does not in any way prohibit Australia from selling uranium to India. Like ‘anti-imperialism’ to our communists, ‘N.P.T.’ is a mantra for the Australian left."

In New Delhi for the opening of the new chancery of the Australian High Commission, Australian Trade Minister Simon Crean was quick to defend his government’s decision, calling the editorial "strident and over the top." When asked if he supported the decision to reverse the Howard government’s uranium trade with India he answered, "Yes, that’s the policy of the A.L.P. [Australian Labor Party]," but said a change in the policy was "not likely."

However, the Indian government said it remained confident it would be able to import Australian uranium under a special safeguard system to be negotiated with the International Atomic Energy Agency.

Foreign Minister Stephen Smith said his government was adopting a "wait and see" approach to the discussions.

"The government has not yet made a decision on future steps on implementing the Civil Nuclear Cooperation Initiative, approval of the I.A.E.A. safeguards agreement when negotiated, and consideration by the Nuclear Suppliers Group of an exception to the N.S.G. guidelines to enable civil-nuclear cooperation with India," he said.

Meanwhile, Indian Prime Minister Manmohan Singh, on a visit to China, has called for the two countries to cooperate in developing each other’s nuclear energy needs despite long-standing differences between the two economic powerhouses.

"India seeks international cooperation in the field of civilian nuclear energy, including with China," Singh said, giving a speech at the Chinese Academy of Social Sciences. "The rapid growth of India and China will lead to expanding demand for energy. We have no choice but to widen our options for energy availability and develop viable strategies for energy security."

Australia has around 40 percent of the world’s known reserves of uranium and exports to 36 countries though the issue of nuclear exports has long been a controversial one in the country.

From the Sydney Morning Herald  

THE world’s biggest car maker, General Motors, believes global oil supply has peaked and a switch to electric cars is inevitable.

In a stunning announcement at the opening of the Detroit motor show, Rick Wagoner, GM’s chairman and chief executive, also said ethanol was an "important interim solution" to the world’s demand for oil, until battery technology improved to give electric cars the same driving range as petrol-powered cars.

GM is working on an electric car, called the Volt, which is due in showrooms in 2010, but delays in suitable battery technology have slowed the project.

Mr Wagoner cited US Department of Energy figures which show the world is consuming roughly 1000 barrels of oil every second of the day, and yet demand for oil is likely to increase by 70 per cent over the next 20 years. Some experts believe the supply of oil peaked in 2006.

The remaining oil reserves are deeper below the Earth’s surface and therefore more costly to mine and refine.

"There is no doubt demand for oil is outpacing supply at a rapid pace, and has been for some time now," Mr Wagoner said. "As a business necessity and an obligation to society we need to develop alternative sources of propulsion."

He added: "So, are electrically driven vehicles the answer for the mid- and long-term? Yes, for sure. But … we need something else to significantly reduce our reliance on petroleum in the interim."

GM is so convinced about ethanol it has signed an agreement with a supplier that claims to have come up with a way of producing ethanol that is cheaper and more efficient than refining oil. The supplier claims it can produce ethanol from "almost any material" such as farm waste, municipal waste, discarded plastics – even old tyres.