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SILICON
SILIC
CHIP
www.siliconchip.com.au
Publisher & Editor-in-Chief
Leo Simpson, B.Bus., FAICD
Production Manager
Greg Swain, B.Sc. (Hons.)
Technical Editor
John Clarke, B.E.(Elec.)
Technical Staff
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Jim Rowe, B.A., B.Sc
Nicholas Vinen
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ISSN 1030-2662
Publisher’s Letter
Australia’s energy needs are in the
hands of the clowns
I sat down to write this editorial with optimism. There
was news this morning that the Minister for Resources &
Energy, Martin Ferguson, was releasing the Federal Government’s draft energy white paper which would set out the
plan to cope with Australia’s growing energy needs. The
government was said to be concerned about feed-in tariffs
and their effect on consumers who can’t afford to install
solar panels. In other words, green schemes are costing us
too much.
This sounded very promising, I thought. At last the Government may be realising that its plethora of green energy schemes is very costly, causing all sorts of
distortions within the economy and that Australia’s ability to provide sufficient
electricity at reasonable prices to consumers in the future is in serious jeopardy. So
full of optimism (idiot), I decided to download the white paper – all 329 pages of it!
It is jam-packed with bureaucratese – important-sounding buzzwords and
meaningless phrases; things like policy outcomes, promoting indigenous opportunities, clean energy transformation, development of regulatory settings that
support increased innovation by energy retailers in terms of tariff design and
consumer engagement and “a series of interconnected policy positions that collectively form the overall policy framework”.
This gibberish will make it difficult for anyone who is supposed to make sensible
comment. After all, it is open for comment and consultation until March 2012,
so any stakeholder (another buzzword) who wants to make a contribution needs
to respond very quickly. Just reading the document in its entirety will take many
hours. I confess to scanning most of it within an hour or so.
My reaction is simply one of dismay. Can this really be the result of months
or possibly years of serious consideration by public servants within the ministry
for Resources & Energy? Is this the best that they can do? Are there no energy and
resource specialists in the ministry who would be able to put worthwhile ideas
forward? Maybe I am simply being naïve and there are no such specialists. If there
are, they were not involved in the preparation of the white paper.
Well, maybe that’s being too pessimistic. The white paper does contain significant
amounts of relevant information, contributed by such bodies as the Australian
Bureau of Agricultural & Resource Economics & Sciences, the Productivity Commission (which the Government seems to consistently ignore), Geoscience Australia,
the ministry’s own Bureau of Resources & Energy Economics, the International
Energy Agency and not forgetting the Department of Climate Change and Energy
Efficiency! Nor should I forget to mention inclusions from the Treasury’s esteemed
paper entitled “Strong growth, low pollution: modelling a carbon price” (2011).
Mind you, the Treasury paper on the carbon price is highly tendentious to say
the least, and mostly in the realm of fantasy, as a more brutal assessment. And
the Department of Climate Change and Energy Efficiency must be contemplating
an uncertain future after the next federal election, given the stated intentions of
the Federal Opposition and the recent decisions by the Canadian government to
disband their equivalent department and to formally opt of the Kyoto Protocol.
In the meantime, if the much-vaunted white paper is anything to go by, energy
policy in Australia is in a mess. There is no plan. It is merely a series of observations and platitudes. And yet, energy policy in Australia could be so good. We
are a very rich country. We are one of the biggest energy exporters in the world
(via coal, uranium and gas).
Let us hope that the next government can put things right.
Leo Simpson
Recommended and maximum price only.
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