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Charlie Wood – 350.org Australia charlie@350.org	11:12 AM (3 hours ago)
to me

Dear friend,

We now have over 600 people registered to switch to fossil free banks on Divestment Day on May 3rd, with events in more than 14 locations across Australia! 

This email contains essential details about how you can participate in this first ever day of divestment action! But first, some pretty excellent divestment developments are currently underway that we thought you’d be excited to hear about:

• Lend Lease recently withdrew their joint-bid to build and finance the Abbott Point Coal Terminal expansion (AP-X) on the Great Barrier Reef. Ten days later, Anglo American pulled out too, leaving just 2 companies involved at AP-X.
• Meanwhile over in Norway, the world’s largest sovereign wealth fund is considering divesting from fossil fuels.
• And the Victorian Uniting Church’s fund manager – UCA Funds Management – is divesting from thermal coal and unconventional oil and gas.

But as major investors at home and abroad wake up to the risks of fossil fuels, new research reveals that, since 2008, the Big 4 Banks have loaned almost $19 billion to new coal and gas projects in Australia, many on the Great Barrier Reef.

It’s time show the big banks that we need to move beyond fossil fuels. Already 600 of you have registered to close your Big 4 account on the 2^nd and 3^rd of May and switch to a fossil free bank – but we need more people! We we want you to be part of this historic moment. Click here to find your nearest event and register today, then LIKE and SHARE our image to invite others to join you.

Once you register, our friends at FossilFree.com.au can give you a call to talk you through the divestment process. Then, on the 2nd and 3rd of May, we’ll all join forces to send the strongest divestment message Australia’s big banks have ever heard.

Locate your nearest divestment event here.

If you’re not ready to close your account on the 2nd or 3rd OR you’ve already divested, please still join us! You can print out a copy of this letter to tell your bank that you’ll be leaving them or if you have already moved to fossil free bank use this letter to tell them why you’ve joined them, then join your nearest event for the fun, photos and celebrations.

And don’t forget, you don’t have to be with the Big 4 to participate. Checkout Market Forces’ great comparison table to see whether your bank lends to coal and gas. If they do, we hope you’ll join us for d-day!

Good luck with your preparations and thanks so much for using your dollars and cents to build a fossil free future! Can’t wait to see you in May!

Yours sincerely,

Charlie, Blair, Aaron, Josh and co.

Why the potential for grid defection matters

RMI

Two weeks ago, Rocky Mountain Institute, HOMER Energy, and CohnReznick Think Energy released The Economics of Grid Defection, which assesses when and where distributed solar-plus-battery systems could reach economic parity with the electric grid, creating the possibility for defection of utility customers.

The results of our analysis have been startling to many: continued rapid declines in the cost of solar and the start of the same trend for storage mean that grid parity may come much sooner than previously thought—and well within the 30-year planned economic life of typical utility investments.

This blog post explores why cost parity doesn’t necessarily equate to widespread customer defection, why defection would create a suboptimal electricity system, and why even the specter of customer defection is relevant.

We selected the pairing of solar PV and batteries—and, for commercial scenarios, the addition of diesel gensets—to explore one set of economics around the trend. There are other disruptive challenges to the grid, including grid-tied solar PV, distributed gas microturbines, and integrated resource microgrids. If anything, these multiple potential disruptors increase the urgency to plan and execute a purposeful electricity system transformation. That transformation is already under way, and the approaching date of grid parity for solar-plus-battery systems is an important consideration.

ECONOMIC PARITY DOESN’T NECESSARILY MEAN CUSTOMERS WILL DEFECT

Our report does not predict if, when, or how many customers will choose to defect. Rather it projects the economics of several current (and possibly, accelerating) trends that are reshaping the electricity landscape: dramatically declining costs for solar and batteries; increasing customer demand for clean electricity, resilience, and other value-added services; and recent upward pressure on retail electricity prices. Ultimately, the impact of these trends depends on a number of factors, including how customers, utilities, regulators, technology providers, and society choose to respond.

The economics that were the subject of our analysis are one of many factors that influence any customer decision to defect (or not) from the grid, or even to adopt grid-tied distributed resources. Other factors customers consider include transaction costs, the relative convenience or hassle associated with the decision, upfront capital and time requirements, confidence a given solution will reliably meet their needs (including the risk that a distributed generation and storage system’s capacity would be sized either too small or too large to closely match a customer’s demand), uncertainty about their long-term electricity needs, and more. Very few customers, especially in the commercial sector, know with certainty their electricity demand for the next twenty years.

Service providers—utilities or third parties intent on winning customers over from grid-supplied electricity—will need to create integrated service packages to overcome adoption barriers that have plagued efficiency and distributed generation providers. Regardless, in addition to the rapidly growing grid-connected distributed solar market, we’ve already seen early adopters working with service and technology providers either to go entirely off-grid or install grid-tied solar-plus-battery combinations that similarly impact (and reduce) their demand from the grid.

DEFECTION WOULDN’T BE THE BEST OUTCOME

Customers will make decisions that serve their best interest based on the many factors referenced above, and while for a very few defection might ultimately be the best outcome, mass defection from the grid is almost certainly suboptimal. Distributed resources such as solar and storage can generate more value and have better economics for customers and society both if they are connected to the grid. The challenge is that today’s utility business models and regulatory environment don’t incentivize the rapid evolution of those solutions, something that needs to change if society is to capture that value.

There is tremendous potential system value in identifying where grid-tied distributed energy resources can create new sources of value and how to access that value. But does most or all of the new value accrue to customers? Or can these resources also create important new sources of value for the grid and ultimately for society? The answer to the latter question can be a resounding yes, so any sustainable solution will need to find a way to equitably share value created through distributed investments.

So how would widespread grid defection create undesirable outcomes?

For one, large numbers of customers going it alone for their electricity generation introduces all manners of economic inefficiency. Each customer faces the risk of over- or under-investing in capacity. Over-investing especially—via necessarily larger systems sized to individual peak demand—would result in significant overbuild and sunk capital. Instead, markets (via a connected grid) provide for greater economic efficiency by allowing customers and suppliers to readily make transactions to balance their own supply and demand, including optimizing distributed generation and storage investments across larger pools of customers rather than one by one, each for their own. Grid-based solutions reduce this economic risk and allow assets to be utilized more efficiently.

For another, grid defection raises social equity concerns. With widespread defection, utilities operating under legacy business models would be forced to significantly raise retail electricity prices to recover costs of grid infrastructure. Those higher prices would unfairly burden remaining grid-connected customers who cannot or choose not to invest in distributed generation and storage, including low-income families who can’t afford system upfront costs and apartment residents who logistically can’t install systems.

An entirely off-grid system would only become a reality if customers are not given an opportunity to participate, through new business models, in the business of generating, storing, and balancing electricity needs. Or if customers’ requirements, including for resilience and clean energy, are not being met by their central provider. That’s a future that would be suboptimal for all.

WHY POTENTIAL DEFECTION MATTERS—CUSTOMER CHOICE AND EMPOWERMENT

But if a grid-defected future is so suboptimal, why then is it so important to understand the economics of grid defection?

First, there is strikingly little quantitative analysis to inform the discussion. It’s critical to know the facts and underlying analytics to support productive conversations about how to move forward in the face of powerful trends and a dramatically shifting electricity landscape.

Second, the option to defect—whether or not it is ultimately exercised in part or in full—adds urgency for utility business models and regulations to change and identifies when scaled solutions that properly value distributed investments need to be in place. Empowered customers, ones with the ability to choose how they purchase, generate, store, and/or use electricity, have a more important seat at the electricity table. That empowered customer is a force of change.

Customers, utilities, grid operators, regulators, and technology providers must work together to develop business models that stave off the need or even desire for customer grid defection. The electricity system needs to give customers an opportunity to transact with the grid in a way that meets their desires (for clean, reliable, affordable electricity) and be compensated for any value they are able to bring to the system at large (through contributions to peak shaving, investing in local reserve supply through distributed storage, through distributed generation that can supply feeder-level power needs, and others).

GOING BEYOND THE EITHER/OR OF GRID-CONNECTED OR GRID-DEFECTED

We need not face an electricity future with an either/or dichotomy of two extremes: total utility/centralized dependence and total defection/independence. There exists another path, one in which central and distributed resources are complementary, connected and supported by a nimble grid. That’s why RMI’s high-renewables (80 percent) Transform scenario in Reinventing Fire envisions a future and a grid powered by equal parts distributed and centrally generated renewables.

In such a future, the utility evolves to play a critical coordination and stewardship role, one that helps balance various distributed resources and supports them with low-cost central generation. Customers, utilities, regulators, and technology providers have an urgent need to shape this future, or we could in fact run the risk of the defected extreme.

A COMMITMENT TO COLLABORATIVELY FORGING SOLUTIONS

Disruptive challenges-cum-opportunities won’t go away. Distributed solar PV is scaling rapidly. Battery costs are declining, with breakthrough innovation accelerating. And third-party service providers are making these systems financially and logistically accessible to bigger pools of customers. RMI’s historic and current activities on energy efficiency, balance of system solar cost reduction, system financing innovations, and storage integration have helped propel the economics of distributed resources forward. An electricity future that includes significantly higher percentages of distributed renewables offers many benefits. But to access those benefits, the entire electricity system must evolve … with utilities and the grid, not in spite of them or without them.

That’s why RMI is committed to collaboratively forging solutions. To achieve the optimal energy future, our Electricity Innovation Lab (e-Lab), for example, brings together utilities, regulators, NGOs, technology providers, and other stakeholders to collaborate on practical solutions to the challenges today’s electricity system faces. In addition, we work hand-in-hand with these and other stakeholders on key components of an integrated solution through direct engagement. Our work on these solutions will be the focus of a forthcoming blog.

Source: RMI. Reproduced with permission.

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Horizon Power ponders end of centralised generation

Si

Juice Media satirizes conspiracy theorists, Tony Abbott

CleanTechnica

I found this quite well done and funny. Just watch it: If you don’t do videos for some reason, here’s the summary: The Rap News crew explains peak oil through rap, especially the increasingly expensive methods, and has a go at Tony Abbott, Elon Musk, Richard Branson.

(Editor’s Tip: “Tony Abbott” appears just before 4m mark. But the whole video is great).

Take a look.

If you don’t do videos for some reason, here’s the summary:

1. The Rap News crew explains peak oil through rap, especially the increasingly expensive methods used to produce oil.
2. It then tackles the Keystone XL, Chinese coal, the China–Tibet controversy, conspiracy theorists, and Tony Abbot.
3. It moves on from that to satirize Elon Musk (dressed as Iron Man on Mars) and Richard Branson (for wanting to mine asteroids and apparently being a womanizer).
4. Finally, someone with some sense chimes in — Copernicus — and speaks of the 2nd heliocentric revolution.

I think it’s quite entertaining. Overall, the creators seem quite well informed when it comes to energy issues, and seem to be on the practical and sensible side of things. They’re also decent rappers and video producers, imho.

Though, my gripes are that: the video presents the global warming denier talking points in a way that is funny to anyone who follows the topic closely but might be misleading to people who don’t; it satirizes Elon Musk despite electric cars and solar power being two key solutions to the crises it presents at the beginning (and even despite highlighting the solar solution at the end of the video). But, overall, I’d give it two thumbs up.

Check it out, and share with friends!

Source: CleanTechnica. Reproduced with permission.

Mixed Greens: Most German solar installers offer storage

German solar installers go for storage

More than two-thirds of German PV installers are now offering energy storage options to their customers, and British and Italian counterparts are starting to do the same, according to a new report from EuPD Research. PV Tech reports that EuPD found Germany has the biggest uptake, because a percentage of storage system costs are paid as a direct subsidy to consumers. One third of Italian installers and a third of British installers surveyed said that they would begin offering storage this year. French installers did not intend to offer any more storage systems because electricity prices remained relatively low.

PV Tech said solar PV companies including Renesola, Sharp Solar and inverter maker Power One all had already launched storage systems for residential customers or had products being prepared for launch to key markets, such as Germany. Andrew Lee, general manager at Sharp Energy Solution Europe’s solar commercial sales division, told PV Tech that storage makes economic sense “if you look at the figures, depending on your system size and your own usage in other countries where there aren’t incentives.” He said the possibility of enabling self-consumption as a potential strong driver for the storage market.

Morwell MP becomes Victoria energy minister

The Victorian government named Russell Northe – the MP for Morwell, where a fire has been burning in the brown coal mine of the same name for nearly a month now – as its new energy minister. It is, as one NGO described it, an appointment from “ground zero”. The fire at the Hazelwood open cut coal mine created huge amounts of pollution, and evacuations, although it is said to have been brought under control at the weekend, although not yet extinguished.

Cam Walker, of Friends of the Earth, said Victoria’s energy policy has been confused under the conservative state government, which has been encouraging the development of polluting unconventional gas and coal allocations, while scrapping incentives for solar and banning wind farms across the state.  “In the wake of the Hazelwood fire, it is clear that the government’s plan to develop a coal export industry is doomed to fail” he said.

The government has also been criticized for its handling of the Morwell fire. “The fire may be contained, but the impact on the ground is like a tsunami — thousands of people have fled Morwell, there is coal ash everywhere, schools and businesses are still closed,” Voices of the Valley president Simon Ellis told the local newspaper.

Energy Action snaps up energy efficiency firm

Listed energy management company, Energy Action says it has paid $4 million for specialist energy efficiency business, Exergy Holdings, which was founded and led by Paul Bannister. The business that focuses on energy efficiency services to its customers, including assessments, retro- commissions and building tuning, environmental performance monitoring, ratings (NABERS, Green Star), lighting design and review, building performance simulation and new building design assistance services.

Exergy employs over 30 staff and has offices in Canberra, Sydney, Melbourne and Auckland. The acquisition comprises an initial cash payment of $2.0 million with additional consideration of $2.0 million based on performance. It represents an EBITDA multiple of 5.4 times.

Norway’s oil fund may inject $40bn in renewables

Norway Prime Minister Erna Solberg has confirmed plans to increase the exposure of its $920 billion sovereign wealth fund – the world’s largest – to renewable energy, part of its stated plans to use its vast wealth to combat climate change.

Norway currently invests only a fraction of its sovereign wealth fund (built up from mostly oil revenues) to green investment. Solberg says this will be expanded, but she will not say how much until April 4.

The government has already appointed independent experts to evaluate whether the fund should exit its coal, oil, and gas investments, which currently make up around 10 per cent of its value.

However, Solberg has not yet indicated whether she will support this.

In the past decade, the fund has already moved to exclude nuclear weapon producers and tobacco companies, as well as companies considered to do work that damages the environment or human rights.

The Government Pension Fund Global – established only in 1996 – owns 1.2% of the world’s listed stocks.

If it does, it could impact Australian firms. Its portfolio includes companies such as BHP Billiton, Woodside Petroleum and Whitehaven Coal, as well as the global oil majors.

In the past twelve months the World Bank, European Investment Bank and the European Bank for Reconstruction and Development have all committed to virtually end coal investments.

Norwegian private pension fund provider Storebrand has also divested from 29 coal and tar sands companies in the past year because of their obvious carbon exposure.

Green NGOs are delighted with the government move, hoping it adds fuel to their “divestment” initiatives which are putting pressue on leading funds managers to withdraw from certain fossil fuel investments.

They are hoping that the sovereign fund allocates around 5 per cent of its assets in infrastructure of renewable energy. That would equate to around $40 billion.

So far, the fund has spent up to $5 billion on projects deemed worthy. By the end of last year, those investments counted 166 companies, with returned 41 per cent in 2013.

“If done at scale, this will have global impact and redefine how we use money consistent with commitments to limit climate change,” said Nina Jensen, CEO of WWF-Norway.

“The pension fund is the largest state investor in the world. A solid renewable energy mandate will send a tremendously powerful signal and set the standard for other international investors.”

Heikki Holmas, an opposition lawmaker with the Socialist Left Party, said the oil fund is the “most important muscle we have”to affect international politics.

“It is rare that one government alone can bend the curve on climate change. Norway, through its sovereign wealth fund, can,” says Samantha Smith, Leader, WWF’s Global Climate & Energy Initiative. “WWF now looks to Norway’s leaders to commit to renewable energy investment at a scale that will make a global difference. This will be their legacy, and we are watching.”