profile

The Energy

Lining up for diesel

Published about 3 hours ago • 6 min read

Hey Reader, in today's edition:

  • Deciding what's 'essential'
  • Senate committee to delve in gas export tax
  • Getting electric trucks moving

Energy sector eyes ‘critical’ status as diesel crunch continues

A four-stage National Fuel Security Plan, released following yesterday's meeting of National Cabinet, lists utilities alongside life supporting and emergency services as “critical users” of fuel that would be protected by Commonwealth actions should they be needed.

It comes as energy network businesses join other sectors including farming and manufacturing in making the case to the government for support to ensure they can continue to access diesel.

Separately, the government announced it would halve the fuel excise and reduce the Heavy Vehicle Road User Charge to zero for three months, at a cost of $2.55 billion, causing economists to fret about the impact on the upcoming federal budget, inflation and the risk of recession.

Expert view

"If there’s no clear rationale for what is an essential use then everyone lines up. But what would be essential? I wouldn't like to have the job of deciding if it’s certain trucks carrying, say food, over other things. Are bananas essential for example?

It’s not surprising that mining, manufacturing, or electricity businesses are concerned and would be trying to convince the minister that they are an essential use of fuel if direction powers are taken up.

To date the government hasn’t triggered the Liquid Fuels Emergency Act that gives the minister, in this case Chris Bowen, strong powers of intervention, including fuel rationing. What’s needed is clear messaging on at what stage those powers might be used and the rules by which the minister would declare someone an essential user.”

Tony Wood
Senior Fellow Energy & Climate Change, Grattan Institute

Senate committee to inquire into gas export taxes

The Australian Senate will scrutinise options for changing how gas exporters are taxed in light of the Middle East conflict, following Greens Senator Steph Hodgins-May's successful bid to set up an inquiry into gas taxation settings.

After winning backing from Labor senators, the senator's motion to establish the Select Committee, entitled Taxation of Gas Resources, passed through the chamber late on Monday afternoon. It’s expected to hand down its findings days before the May 12 Budget.

ACT Independent Senator David Pocock welcomed the inquiry, saying Australians had been "dudded on the sale of our gas". The starting point had to be a 25% tax on gas export revenue, he said.

The PRRT is riddled with loopholes that allow multinational gas companies to shift profits, make use of compounding carry-forwards and ultimately avoid paying anything close to a fair share. Despite a massive LNG export boom, most PRRT revenue still comes from oil, not gas projects. Australians have seen tens of billions in gas exported with minimal returns to the public.
​
David Pocock, Independent Senator for the ACT

Catch Up

Capital

​

A $25.3 million ARENA investment in transport electrification firm NewVolt will help it kick-start a national network of truck charging stations, with three open-access, fast-charging hubs set to provide recharging services for trucks traversing major freight corridors across Melbourne’s west, south-east and north. The investment also includes support for between 50 and 100 electric trucks that will move freight across the metropolitan area. The first site will open late this year, with the others due in 2027.

Projects

​

The proposed Kentbruck green power hub – a 7500ha wind farm near Portland in south-west Victoria – has run into opposition from green groups because of its proximity to national parks and internationally significant wetlands. “If we’re planning these things properly, we wouldn’t be putting them next to Ramsar sites or smack-bang next to national parks,” said Jordan Crook, campaigner for the Victorian National Parks Association. The proponent, HMC Capital, said that the risk to wildlife could be mitigated. (The Age)

Policy

​

Australia needs to reduce its exposure to global energy crises by “turbocharging electrification”, a group of consumer organisations – including Energy Consumers Australia, Energy Efficiency Council, Electric Vehicle Council and others – have argued in calling for government action to help Australians make the switch to efficient electric technologies where possible. Recommended measures include providing financial incentives for freight operators to go electric; providing targeted electrification support for renters, apartment dwellers and low-income Australians; helping manufacturers and food processors to electrify their operations “where technically feasible”; supporting supply of renewable energy, storage and grid development to keep pace with rising electricity demand; and investing in public communications programs.

By themselves, rebates on solar PV panel installations are not enough to bring the benefits of renewables to apartment dwellers, two Deakin University energy experts have argued. They say the real obstacles to broad solar adoption lie in “the complications that come with shared buildings – for example, roof access, strata approvals, common-property rules, entering arrangements, switchboard upgrades, network constraints, and how benefits are shared across residents. Removing these obstacles requires co-funding for common property electrical upgrades, support for feasibility studies, simpler approvals, and providing sources of trusted one-stop advice for owners corporations.

Regulation

​

The AER has been appointed as scheme regulator for South Australia’s Firm Energy Reliability Mechanism (FERM), a policy framework designed to support firm capacity that supplies electricity for more than 8 hours continuously. AER’s first action as overseer of FERM, the regulator said, was to approve the risk-management framework – co-developed with scheme administrator AusEnergy Services Limited – that applies to the scheme’s financial vehicle.

Climate

​

New modelling from RepuTex modelling, commissioned by the Australian Conservation Foundation and the Climate Council, shows that coal and gas projects are exploiting loopholes in the Safeguard Mechanism to increase both pollution and profits. The risk of exceeding national climate targets is poorly managed and could lead to close to 50 million tonnes of additional pollution by 2035 if immature technologies like carbon capture and storage fail to scale-up, they say.

People

​

Epic Energy has appointed Chris Judd as CEO. Judd was previously executive general manager of new energy at ATCO Australia, and also spent over 7 years at Suzion Energy Australia.

Random

​

A typical mid-sized restaurant could cut energy costs by over $55,000 by electrifying its cooking equipment, according to a newly released Global Cooksafe Coalition report, entitled Making the Switch. The guide offers a detailed breakdown of three UK businesses – a gastropub, Chinese takeaway restaurant, and an Indian restaurant – and applied real operational energy data from commercial kitchens to lay out a detailed, evidence-based financial case for electrification

What's On

March 30-April 2​​
​Australian Domestic Gas Outlook

Speakers including Santos’s Kevin Gallagher, Amplitude Energy’s Jane Norman, Shell’s Cecile Wake, AEMC’s Andrew Lewis and AWU’s Paul Farrow will join other gas industry leaders at this Sydney event.

April 9​​
​Gas networks in transition

The AEMC will host an online forum to allow stakeholders to ask questions while developing their submissions before the April 30 deadline.

April 14​
​Who's really in charge? Rewiring governance for Australia's energy transition

UNSW Energy Institute CEO and The Energy advisory board member Dani Alexander will moderate this webinar from The Energy on governance, featuring a new report authored by Rob Murray-Leach and in discussion with former Commonwealth energy secretary Drew Clarke, Grattan Institute Energy and Climate Change Program Director Alison Reeve and Nous Group CEO Tim Orton.

April 23​
​Future Energy Forum

This Melbourne Energy Institute (MEI) event will focus on the potential role of nuclear-related technologies and other advanced energy technologies. Speakers include Type One Energy’s Charlie Baynes-Reid, HB11 Energy’s Dr Warren McKenzie, Hostplus’s Dr Sam Sicilia; University of Melbourne Professors Maria Rost Rublee and Martin Sevoir; and Melbourne Energy Institute director Professor Richard Sandberg.

Level 1, 60 Martin Place, Sydney, NSW 2000
​Unsubscribe · Preferences​

Forwarded this email? Subscribe here​

The Energy

Cut through the noise, harness The Energy

The Energy is dedicated to covering the business of energy and in particular the people, capital, projects and emerging technology behind the energy transition.

Read more from The Energy

Hey Reader, in today's edition: Deciding what's 'essential' Senate committee to delve in gas export tax Getting electric trucks moving Energy sector eyes ‘critical’ status as diesel crunch continues A four-stage National Fuel Security Plan, released following yesterday's meeting of National Cabinet, lists utilities alongside life supporting and emergency services as “critical users” of fuel that would be protected by Commonwealth actions should they be needed. It comes as energy network...

about 3 hours ago • 6 min read

Hey Reader, in today's edition: Different takes on AEMO roles Lessons from community-owned solar Fuel supply crunch continues Industry divided over market operator’s future The federal government will this week publish dozens of submissions to the AEMO governance review, with chair Nigel Ray due to report to the Energy and Climate Change Ministerial Council in May. Submissions shared with The Energy suggest a divergence of views, even within the renewable energy sector. While some want to see...

1 day ago • 8 min read

Hey Reader, welcome to The Energy Week, your chance to catch up on this week's most important energy news. Prefer to listen? Get The Energy Week on your favourite podcast platform. THE ENERGY WEEK • EPISODE 24 Falling gas demand amid energy crisis 06:48 MORE INFO This week's top energy news News of declining Australian gas demand was overshadowed by geopolitics this week as markets continued to brace for a global LNG supply squeeze. Expected shortfalls in peak day and annual supply of gas...

3 days ago • 10 min read