Turnbull has politicked himself into irrelevance on energy and climate in 2018



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Marcella Cheng/The Conversation

Alan Pears, RMIT University

As we approach the end of the year, it’s useful to look back and forward. Now is an auspicious time, as two major energy-related reports have been released this week: the federal government’s review of their climate change policies, and a discussion paper from the Australian Energy Market Operator (AEMO) on future energy paths.

The difference between the two is striking. The AEMO paper is practical, direct and realistic. On the other hand, the climate policy review relies essentially on Australia buying lots of international carbon permits to meet our Paris target (and, implicitly, on state governments taking up the challenge their Canberra colleagues have largely abanondoned).

It’s amusing to read a document that plays with numbers in such creative ways. But it is a fairy story, and it’s no way to drive national climate policy.


Read more: The federal Climate Policy Review: a recipe for business as usual


I almost feel as though I could just change the dates and reprint my article reviewing prospects for energy in 2017:

2017 is the year when many long-festering energy policy problems must be addressed. Our outdated energy market model is falling apart. The gas industry is lining its pockets at the expense of Australian industry. Climate policy is urgent, but controversial among key decision-makers. Our fossil fuel exports are under threat from global forces.

But things have in fact shifted a long way – the revolution is accelerating and unstoppable. The federal government is almost irrelevant; the public statements and policies it presents are simply aimed at getting “something” through the Coalition party room, or trying to throw blame on others. It’s very sad.

The real games are being played out within state governments; in battles between energy policy agencies and regulators; by emerging industry players who do not even have formal roles in energy legisation; and by business and the community as they defend themselves from the failures around them by implementing “behind the meter” solutions and working together.

The real heavy lifters

Medals of Valour should be awarded to Chief Scientist Alan Finkel, AEMO chief executive Audrey Zibelman, and South Australian Premier Jay Weatherill.

The government’s response to this year’s Finkel Review showed that no amount of compromise would allow a sensible energy and climate policy to pass through the minefield of the Coalition party room. Prime Minister Malcolm Turnbull and Environment and Energy Minister Josh Frydenberg, both of whom know what they need to do, simply have too little political capital within that place to drive realistic energy policy.

But the Finkel Review also successfully recommended many changes that will help to fix the physical operation of the grid. Innovation and the laws of physics have finally begun to triumph over market politics and ideology.


Read more: The Finkel Review at a glance


AEMO worked out a way to get around the glacial and obstructive tactics of the Australian Energy Market Commission on demand-side action by setting up a “pilot project” to drive demand response. It has been clear for decades that this is a very cost-effective tool. Zibelman has been a voice of practical reality and clear understanding of the future of energy, including the demand side, and AEMO’s future energy paths reflects that.

Weatherill has weathered a storm of abuse over his state’s innovative energy strategy. His government has shown how a diversified approach can transform an energy system in little more than a year. But he needs to put more effort into long term energy efficiency and energy productivity improvement measures integrated with renewables and storage, to reduce pressure on electricity systems over time. For example, home cooling comprises a third of South Australia’s peak electricity demand, but could be slashed by efficient buildings and cooling equipment.

What lies ahead

Looking forward, the coming year will be shaped by some key issues, some of which are already playing out at a frenetic pace. Consider a small sample of many recent events:

  • As mentioned, AEMO has released a discussion paper framing a very different electricity future, and including a low-carbon scenario.

  • The new battery in South Australia has delivered remarkable outcomes, helping to stabilise the grid in ways that few imagined.


Read more: Yes, SA’s battery is a massive battery, but it can do much more besides


  • The Victorian Essential Services Commission has proposed a new “time of day” feed-in price for rooftop solar that reaches 29 cents per kilowatt-hour in afternoons and evenings. If approved, this will be a game-changer, as adding battery storage to rooftop solar will become far more attractive.

  • The Energy Networks Association, not the gas industry, has released a zero emission gas strategy at last.

  • The annual report on the National Energy Productivity Plan (remember that?) shows we’re falling behind even the government’s weak target: not surprising given the miniscule resources allocated.

Meanwhile the federal government has released energy modelling to underpin ongoing negotiation on the National Energy Guarantee (NEG) that is simply irrelevant and embarrassing. The Energy Security Board’s involvement in this has undermined perceptions of its independence, especially when it is contrasted with the vision AEMO is discussing in its paper.

While the states have agreed to continue discussion on the NEG in April, there are some major hurdles. Primarily, states must be allowed to set and achieve their own energy targets: the federal energy minister has put the blame for problems on the states, and they now have to be seen by their voters to act.

Second, the design must ensure it does not give the dominant energy companies even more power to distort markets. Some members of the Energy Security Board seem to understand the challenges, and are optimistic they can be overcome. Time will tell.

The ConversationAs Turnbull has said, we live in exciting times.

Alan Pears, Senior Industry Fellow, RMIT University

This article was originally published on The Conversation. Read the original article.

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NSW ReachTEL: Coalition leads 52-48 as One Nation slumps. Xenophon tied or ahead in SA’s Hartley


Adrian Beaumont, University of Melbourne

A NSW ReachTEL poll for Fairfax media, conducted 5 October from a sample of 1650, gave the Coalition a 52-48 lead by preference flows at the 2015 election, a 3 point gain for Labor since a Channel 7 ReachTEL poll, conducted just after Mike Baird’s resignation as Premier in January. With 8.1% undecided excluded, primary votes in this ReachTEL were 40.9% Coalition (down 1.8), 33.7% Labor (up 5.7), 9.9% Greens (up 1.5), 8.9% One Nation (down 7.4) and 2.4% Shooters, Fishers and Farmers. NSW uses optional preferential voting.

Premier Gladys Berejiklian held a 52.1-47.9 lead over opposition leader Luke Foley in ReachTEL’s forced choice better Premier question, which tends to favour opposition leaders over polls that have an undecided option.

The January poll was taken when One Nation was at its peak, both nationally and in state polls, and that poll had One Nation at a record for any NSW poll. As One Nation’s right-wing economic views have become better known, it appears that much of their working-class support has returned to Labor.

In Queensland, One Nation’s support in a recent ReachTEL was 18.1% including undecided voters. Queensland Premier Annastacia Palaszczuk’s support for the Adani coal mine does not distinguish Labor from the LNP. If the two major parties are seen as similar, anti-establishment parties can thrive.

At the recent NZ and UK elections, the total major party vote increased substantially. I believe this increase occurred at least partly because the major NZ and UK parties had very different policies, and anti-establishment parties were denied the “this mob is the same as the other mob” line. In contrast, the major parties were in coalition before the German election, and both slumped badly, with the far-right AfD winning 12.6%.

NSW state by-elections: Nats hold seats despite big swings against

Yesterday, by-elections occurred in the NSW National-held seats of Murray and Cootamundra, and in Labor-held Blacktown; all three seats were easily won by the incumbent party at the 2015 election. The Liberals did not contest Blacktown.

In Murray, Shooters candidate Helen Dalton stood as an Independent at the 2015 state election. The Nationals won by 53.5-46.5, a 19.2 point swing to Dalton since 2015. Primary votes were 40.5% Nationals (down 15.0), 31.4% Dalton (up 13.2) and 21.0% Labor (up 4.8).

In Cootamundra, the Nationals won by 60.1-39.9 vs Labor, a 10.3 point swing to Labor. Primary votes were 46.0% Nationals (down 19.9), 24.2% Labor (down 1.8) and 23.5% Shooters, who did not stand in 2015.

With no Liberal in Blacktown, Labor romped to 68.9% of the primary vote (up 15.0). The Christian Democrats were a distant second with 17.7% and the Greens won 8.8%.

These results do not yet include postal votes, which are likely to favour the Nationals. Further pre-poll votes in Murray and Cootamundra also remain to be counted.

Galaxy poll in SA seat of Hartley: Xenophon leads Liberals 53-47, but ReachTEL has a 50-50 tie

Nick Xenophon has announced he will leave the Senate after the High Court’s ruling on whether current members are eligible has been delivered. Xenophon will contest the SA state Liberal-held seat of Hartley at the March 2018 election. A Galaxy robopoll in Hartley, from a sample of 516, had Xenophon leading the Liberals by 53-47, from primary votes of 38% Liberal, 35% Xenophon, 17% Labor, 6% Greens and 3% Conservatives.

However, a ReachTEL poll for Channel 7 had a 50-50 tie, from primary votes of 36.7% Liberal, 21.7% Xenophon and 19.7% Labor. The primary votes probably include an undecided component of a little under 10%; these people can be pushed to say who they lean to. It is likely leaners strongly favoured Xenophon, as the Liberals would lead on the primary votes provided.

The Galaxy poll is encouraging for Xenophon, but the ReachTEL poll is more sobering. Labor will target Xenophon during the campaign over votes he has taken in the Senate that have helped the Coalition pass its legislation. Currently, only those who follow politics closely are aware of these votes, but Labor’s campaign is likely to increase this awareness. Such a campaign could undermine Xenophon’s support among centre-left voters.

Essential state polling: July to September

Essential has released July to September quarterly polling for all mainland states, by month for the eastern seaboard states. In September, the Coalition led by 51-49 in NSW, unchanged on August. In Victoria, Labor led by 54-46, a 2 point gain for Labor since August. In WA, Labor led by 54-46 for July to September, a 1 point gain for the Coalition.

In Queensland, Labor led by 53-47 in September, a 2 point gain for the LNP since August. Primary votes were 35% Labor, 35% LNP, 13% One Nation and 10% Greens. By splitting One Nation and Others preferences evenly, Essential is likely to be overestimating Labor’s two party vote.

In SA, Labor led by an unchanged 52-48 in July to September. Primary votes were 37% Labor, 30% Liberal, 18% Nick Xenophon Team and 6% Greens. If these hard-to-believe primary votes are correct, Labor is far further ahead than 52-48. The NXT won 21.3% in SA at the 2016 Federal election.

The ConversationEssential’s state polling was not good at any of the Victorian 2014, Queensland 2015 or NSW 2015 state elections.

Adrian Beaumont, Honorary Associate, School of Mathematics and Statistics, University of Melbourne

This article was originally published on The Conversation. Read the original article.