Category: Energy Matters

The twentieth century way of life has been made available, largely due to the miracle of cheap energy. The price of energy has been at record lows for the past century and a half.As oil becomes increasingly scarce, it is becoming obvious to everyone, that the rapid economic and industrial growth we have enjoyed for that time is not sustainable.Now, the hunt is on. For renewable sources of energy, for alternative sources of energy, for a way of life that is less dependent on cheap energy. 

Mining tax breakthrough

admin /1 July, 2010

Mining tax breakthrough

MALCOLM MAIDEN
July 1, 2010 – 2:01PM

 

Deal to be announced Friday?

Chief political correspondent Phillip Coorey says an announcement of a breeakthrough in negotiations over the resources tax is expected on Friday.

The Gillard government and Australia’s big three miners have made significant progress in talks about a resources tax compromise and are believed to have reached an agreement that would end one of the biggest government-private sector brawls in history.

It’s understood that BHP Billiton, Rio Tinto and Xstrata have agreed with the government now on the key elements of a new resources tax structure, including the creation of a new trigger point for the imposition of the tax, set at the 10-year Commonwealth bond yield plus 7 per cent.

Shares of all major miners pared their losses on the news, with BHP, Rio and Fortescue Metal Group among those stocks to pick up, helping the overall market to trim its retreat for the day.

With Prime Minister Julia Gillard in far north Queensland today for the funeral of soldier private Ben Chuck killed in Afghanistan, the formal announcement of a deal could be held over.

The proposed new trigger point for the ”super profits” tax to kick in is currently equal to a rate of about 12 per cent, around about the average cost of capital in the mining industry. The original tax cut in above the bond yield only, currently just over about 5 per cent.

The government is also believed to have resolved the miners’ concerns that the tax will be retrospective in its application, by agreeing that the miners can inject their existing assets including the huge Pilbara iron ore mines and the rich east coast coal mines into the revised tax regime at market value. This is a huge concession.

Retrospectivity, the rate at which the tax is imposed and the headline rate — set originally at 40 per cent — were the three key mining sector objections to the proposed new tax. It was unclear at midday, east coast time, what deal had been struck on the headline rate, but the government is believed to have also given ground on this point, with people with knowledge of the talks saying the two sides were “nearly there” on an agreement.

Greens plan to prevent catastrophic oil spills

admin /30 June, 2010

Greens plan to prevent catastrophic oil spills The Australian Greens will push for tough new regulations for the oiland gas industry, including a comprehensive polluter pays regime, toreduce the risk of catastrophic oil spills off Australian coastlines. Announcing a new protection plan with Senator for Western AustraliaRachel Siewert in Perth today, Australian Greens Leader Bob Continue Reading →

Australian Parliament Pushes Renewable Support through

admin /29 June, 2010

Australian Parliment Pushes Renewable Support Through

Published: June 25, 2010

Sydney, Australia — Australia’s government has passed amendments to the Renewable Energy Target that are expected to create greater investment certainty for large-scale renewable projects such as wind farms, and will ensure support to households for small-scale renewables remains well targeted.

Australian Clean Energy Council CEO Matthew Warren said the welcome reforms would unlock more than AU $20 billion in investment in major generation projects.

The Government amendments to the enhanced Renewable Energy Target included:

Excess banked RECs: In the event of very high numbers of Renewable Energy Certificates (RECs) being created from small-scale renewable sources in the next six months, the Bill includes a provision to temporarily increase the target in 2012 and 2013 to provide greater investment certainty. The 20% by 2020 target will remain, as any temporary increase will be offset by reducing targets by the same total amount of RECs between 2016 and 2019.

Household RECs review: The process for review will be strengthened in the Bill, with the Minister to be given independent advice on matters relating to RECs under the Small-scale Renewable Energy Scheme (SRES), including whether the $40 REC price remains appropriate over time.

Solar Credits: To provide flexibility to deal with changes in the cost of solar panels, the Renewable Energy Regulator will be given power to adjust the Solar Credits multiplier. The Government will consult on draft regulations to implement this arrangement later this year.

The legislation will split the Renewable Energy Target, which guarantees 20 per cent of Australia’s energy in 2020 will come from renewable sources, into two parts from January 1 2011 – the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET).

The LRET, covering large-scale renewable energy projects like wind farms, commercial solar and geothermal, will deliver the majority of the 2020 target. The SRES will provide a set level of support to the roll out of small-scale technologies such as solar panels and solar hot water systems.

Australian Clean Energy Council CEO Matthew Warren said the welcome reforms would unlock more than AU $20 billion in investment in major generation projects while creating a stable growth path for household scale technologies like solar hot water and solar PV panels.

“It is rewarding to see all sides of politics come together to deliver and enhance these important reforms that will underpin the creation of a world-class Australian clean energy industry this century,” he said. “This completes a first important step forward in decarbonising energy in Australia.  It’s now important for the industry get on with the job.”

NSW Parliament swamped by 7.725 anti-coal petitioners

admin /24 June, 2010

NSW Parliament swamped by 7,725 anti coal-power petitioners Media release: 24 June 2010 Petitions signed by 7,725 citizens of NSW calling for the Keneally government to abandon its plans for new coal-fired power stations were tabled in parliament today, according to Greens NSW MP John Kaye. Dr Kaye said: “Treasurer Eric Roozendaal’s plan for two new fossil fuel Continue Reading →

Truce called in mining tax battle

admin /24 June, 2010

Truce called in mining tax battle

BHP Billiton

Source: Bloomberg

AUSTRALIA’S mining industry and the government have agreed to a truce in the fight over the resources tax, after Julia Gillard was appointed the country’s new prime minister.

The government and the sector have been locked in a bitter battle over the controversial 40 per cent super-profits tax, with both backing extensive campaigns to push their views on the proposal.

In an attempt to ease hostilities, Australia’s first female prime minister, Ms Gillard, offered an olive branch to mining companies over the proposed tax, pushing mining shares higher.

In a clever political move, Ms Gillard said she would cease the taxpayer-funded campaign to sell the tax and asked the mining sector to also end its fierce campaign of opposition to the tax.

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