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Is it ok for the regulator to ignore electricity networks’ extraordinary profits?

RenewEconomy - Tue, 2016-12-06 11:15
Australia’s monopoly electricity networks are the most profitable businesses in Australia. And the consumer pays, and pays.
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A brief history of coral

ABC Environment - Tue, 2016-12-06 11:00
Coral polyps appear totally helpless at first. So how do they manage to survive, breed and form giant structures like the Great Barrier Reef?
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Australia must choose between coal and coral – the Great Barrier Reef depends on it

The Guardian - Tue, 2016-12-06 10:52

The government hopes its latest reports will keep the reef off Unesco’s world heritage in-danger list. But protecting the reef for future generations involves addressing the threat posed by climate change

At first glance, the progress reports on the Great Barrier Reef released last week by the Australian and Queensland governments might seem impressive.

The update on the Reef 2050 Plan suggests that 135 of the plan’s 151 actions are either complete or on track.

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Human evolution 'not over yet'

BBC - Tue, 2016-12-06 09:10
The regular use of Caesarean sections is having an impact on human evolution, say scientists.
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Why OPEC's squeeze on oil prices is getting weaker all the time

The Conversation - Tue, 2016-12-06 09:05

OPEC’s recent decision to cut oil production for the first time in eight years marked the return of the oil cartel’s favourite tactic: squeeze supply in a bid to jack up the price.

Of course, this is nothing new. In 1851, during the Pennsylvania oil rush, the Oil Creek Association helped to push the price of oil up from 10 US cents a barrel to US$4.

OPEC can only dream of having the power to move prices by 4,000%. The reality is that its power to move prices at all is waning rapidly, as factors move beyond the bloc’s control.

It’s worth noting what happened to the oil drillers of Pennsylvania after they installed a floor under their high oil prices. Investors shifted their focus elsewhere, looking to Russia, Texas and eventually the Middle East. Precisely the same thing is happening to OPEC, particularly through the advent of the US shale oil industry. And this time it’s happening not in the golden age of oil but in an era when market conditions for polluting fuels are much tougher.

In 2008, when oil prices were high, Goldman Sachs predicted that oil would hit US$200 a barrel. But they are financial wizards, not historians. It has been 75% less for most of the period since.

Over the decades we have also grown used to hearing predictions that there are “only 30 years of oil left at current production rates”. (The horizon never seems to move any closer or further away.)

But bear in mind that oil reserves are a function of technology and price. When prices rise and technologies improve, more oil becomes economically viable to extract, effectively increasing the world’s oil reserves. As prices fall, these reserves effectively cease to exist until prices rebound or technology gets cheaper.

So, in one sense, the oil game hasn’t changed. OPEC needs high prices to justify extracting the oil. But bigger factors are now at play, which makes it harder for OPEC to squeeze supply as effectively as it once did.

What has changed?

OPEC was at its most powerful when the United States, the world’s largest oil consumer, relied on OPEC member states to meet its oil needs. Since the US shale boom increased US energy independence, OPEC can no longer threaten supply as it did during the 1970s. Now it simply risks squeezing itself out of the market.

It’s not just the US domestic market that has grown. If OPEC restricts supply, Canada can increase oil production from tar sands, and Brazil can bring on more deep-water oil production.

All of this challenges the perception that there is a shortage of oil, although more sophisticated peak-oil followers have shown that cheap oil from conventional sources did indeed peak in 2007, prompting the most recent big surge in oil prices.

In a bid to maintain its influence on supply and therefore prices, OPEC has turned to Russia, the world’s largest state-controlled oil producer, which has agreed to cut production in tandem with OPEC nations.

But even this will not be enough to keep pace with the changes wrought by new markets, new technologies and energy efficiency. Two years ago we wrote that OPEC had lost its power and, despite the latest move, we don’t see much to indicate that it has returned.

The knock-on effects

The fundamentals of the oil industry haven’t changed with this latest deal. In Australia the effect will be a roughly 5% increase in the oil price, and a larger increase in the price of petrol (perhaps up to 10%), as distributors and retailers take advantage.

Aside from the small effect on Australian consumers, this announcement will probably be helpful to Australian oil companies, giving them some good news to tell shareholders and employees.

But before boardrooms get too excited, it is worth noting that oil is also suffering a demand problem. All developed nations have now begun to decouple economic growth from fossil fuels. For oil, the chief threat is one of being replaced by electric public transport and electric or hybrid cars.

Oil’s murky future

Oil’s future suffers from another problem: it’s not good for your health. An announcement that will have a more powerful effect on the oil price, but which received much less media attention, came in 2012 when the International Agency for Research on Cancer (IARC) updated its classification of diesel engine exhaust from “probably carcinogenic to humans” (Group 2A) to “carcinogenic to humans” (Group 1). Petrol exhaust is listed as probably carcinogenic.

Health impacts are a large driver for moving away from fossil fuels – even for those who don’t accept the predicted climate impacts. With the fundamental shift towards fuel efficiency and electric vehicles, the Volkswagen emissions scandal and the awareness that petrol and diesel cause cancer, respiratory disease and lower birth weights in babies with mothers living near major roads, the trend for oil consumption is downward.

So the drivers for change are as they have always been – demand and technology are behind the wheel, not OPEC making “important” announcements. Look for a small, short-lived increase in your local fuel price, but remember that if your tank of fuel goes up by 10c a litre, most of that isn’t down to OPEC. It’s mainly retailers looking for a bigger Christmas bonus.

The Conversation

The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond the academic appointment above.

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CSIRO sees $100bn savings in zero carbon grid by 2050

RenewEconomy - Tue, 2016-12-06 07:34
CSIRO and network lobby says completely decarbonised grid by 2050, mostly wind and solar and homes and businesses providing half of all needs, will save $100 billion in capital savings, one-quarter off customer bills, and deliver system security. Say goodbye to fossil fuels.
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How Norse words survived the northern weather

The Guardian - Tue, 2016-12-06 07:30

Vikings who settled in the north of England have handed down more than their names for landscape features

Thirty years ago farmers in the Yorkshire Dales never wore gloves even when the temperature was well below zero and there was snow on the ground. Asked if their hands felt cold one replied: “Aye a little, but only twice a day.

“I feel it first thing in the morning when I first go out, but after a few minutes my fingers go numb, like, and then I don’t feel them again until I finish my evening work and go inside the house. Then they sting a bit as they warm up again.”

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CSIRO, networks put lie to conservative campaign against wind, solar

RenewEconomy - Tue, 2016-12-06 06:19
CSIRO and networks body put a lie to the conservative campaign against wind and solar, saying Australia could reach renewable energy levels in the high 90 per cent by 2050 and South Australia could reach 80 per cent by 2036 without affecting reliability, or increasing costs.
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Pet sounds: why birds have much in common with humans

The Guardian - Tue, 2016-12-06 05:20

An expert on Australian native species says birds can have empathy, grieve after the death of a partner and form long-term friendships

It is generally quite well-known that kookaburras live in family groups: a bonded male and female, plus a retainer of their offspring. Numbers matter in kookaburra society because a neighbouring tribe may have its eye firmly on the expansion of territory – and may invade a smaller group.

This means the injury and eventual death of one bird – most crucially of one of the parent birds – can have disastrous effects for the remaining group. They could be evicted from their home, which is likely to lead to their death.

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Opposition to public funding for Adani rail link outweighs support, poll finds

The Guardian - Tue, 2016-12-06 05:13

Poll commissioned by the Australia Institute finds 41% oppose funding the link between the coalmine and port in north Queensland while 33% support it

More Australians oppose the idea of funding infrastructure for the Carmichael coalmine than support it, although the reverse is true in Queensland, a new poll has found.

The Research Now poll commissioned by the Australia Institute, released on Tuesday, found that 41% opposed funding construction of infrastructure to help the Adani coalmine, compared with 26% who supported it and 33% who were undecided.

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Great Barrier Reef needs far more help than Australia claims in its latest report to UNESCO

The Conversation - Tue, 2016-12-06 05:08
The Great Barrier Reef's major threat is climate change. Great Barrier Reef image from www.shutterstock.com

At first glance, the progress reports on the Great Barrier Reef released last week by the Australian and Queensland governments might seem impressive.

The update on the Reef 2050 Plan suggests that 135 of the plan’s 151 actions are either complete or on track.

The Australian government’s apparent intention in releasing five recent reports is to reassure UNESCO that the Great Barrier Reef should not be listed as “World Heritage in Danger” (as the World Heritage Committee has previously threatened).

Sadly, behind the verbosity and colour of these reports, there is disappointingly little evidence of progress in the key areas needed to make a significant difference to a World Heritage Area that is in crisis.

Poor baseline

The government framework for protecting and managing the Reef from 2015 to 2050, the Reef 2050 Plan, has been widely criticised as failing to provide a sound basis for the necessary long-term protection of the Reef.

As well as providing a shaky basis to build effective actions, the Reef 2050 Plan has few measurable or realistic targets. It is therefore not easy to report on the actual progress.

Several of the actions that will have the greatest impacts on the overall health of the Reef are shown in the progress reports as “not yet due”. In some cases, such as climate change, the Reef 2050 Plan is silent, instead simply referencing Australia’s national efforts on climate change.

Instead, the plan is to “[improve] the Reef’s resilience to climate change by reducing local pressures”. Besides addressing water quality, there are many things that should also be considered but they involve making some really hard decisions, such as choosing between coal and coral.

Progress versus reality

The overview of progress claims that 135 of the 151 actions in the Reef 2050 Plan are either completed (dark green) or are on track for their expected milestones (light green), as shown below.

Reef 2050 Plan: Update on Progress, 2016, CC BY

The reality, however, is that many of the 103 of the actions described as “on track/underway” have not progressed as initially proposed when the Reef 2050 Plan was submitted to UNESCO, and that the definition of “underway” is far too loose to be meaningful.

Our rapid assessment of the status of actions indicates that the level of progress reported for at least 32 of these 151 actions (around 21%) has been overstated. The following are just some examples:

The unfortunate truth is that neither UNESCO nor the IUCN has the time or resources to conduct their own comprehensive assessment of the Great Barrier Reef. They rely heavily on these reports when deliberating on what to recommend to the World Heritage Committee, including whether the Reef should be placed on the World Heritage in Danger list.

Our rapid assessment indicates there are real concerns with relying on the government to self-report accurately. It would appear the only way that UNESCO will receive an accurate update is if that assessment is done independently of government. Fortunately, UNESCO and IUCN do consider other evidence.

It is also concerning that the members of the government’s Independent Expert Panel and the Reef 2050 Advisory Committee were not involved in making the final assessments for the 2016 update report.

Despite pronouncements that the Great Barrier Reef remains healthy, the evidence of the 2015 Water Quality Report Card, along with numerous expert opinions (for example, Jon Brodie on water quality; Terry Hughes on coral health; the Queensland government on scallops; and the Marine Park Authority on inshore dolphins) shows that the real situation is not as rosy as UNESCO and the Australian public are being told.

Some real progress, but not enough

It is important to recognise some progress is being made – but sadly too little and not enough to reverse the declining trend for many of the values for which the Reef was listed as World Heritage.

We should also question some of the priorities in the Reef 2050 Plan given the widely acknowledged critical issues (see page 252 in the government’s 2014 Outlook Report). Adopting best practice for water quality from point sources such as sewage discharge (action WQA11 under the plan) and protecting habitat for coastal dolphins (BA12) should be immediately addressed.

Whether we have the money to do what’s necessary is another question. The government’s pledge to spend A$2 billion over 10 years is the current collective yearly spending (A$200 million) of four federal agencies, six state agencies and several major research programs, extrapolated over the coming decade.

While the level of funding is significant compared with many other World Heritage areas, the amount and priorities must be questioned, given that many of the Reef’s values are continuing to decline.

So far most funding has been spent on addressing water quality, and while this has achieved some positive results, it has not managed to stop the deteriorating trends.

As Jon Brodie recently wrote on The Conversation:

The best estimate is that meeting water quality targets by 2025 will cost A$8.2 billion … If we assume that … A$4 billion is needed over the next five years, the amounts mentioned in the progress report (perhaps A$500-600 million at most) are … totally inadequate.

More action needed

The Reef is unquestionably of global significance. Given its sheer size and location, no other World Heritage Area on the planet includes such biodiversity.

The worst-known bleaching event in the Great Barrier Reef demonstrates the limitations of the Reef 2050 Plan, which is silent on the impact of greenhouse emissions from Queensland’s coal mines and the effects of climate change more generally.

Governments have an obligation to protect all the Reef’s values for future generations. To do this they must recognise growing global moves to address climate change, and the widespread national and international expectations that more needs to be done to protect the Reef.

Australia is a relatively rich country and has the technical capability to address the issues. This provides an opportunity to show some global leadership for managing such a significant part of the world’s heritage.

Listing the reef as World Heritage in Danger won’t in itself fix the problems – but it will certainly focus the spotlight on the issues.

As the World Heritage Committee prepares for its next meeting in July 2017, and considers once again whether to officially list the reef as in danger, it will need to study all the evidence, not just the government’s reports.

Certainly the true picture is more complicated and dire than the most recent government reports imply.

The Conversation

Alana Grech receives funding from the Australian Research Council.

Jon Brodie is a partner in the environmental consulting partnership C2O.

Jon C. Day does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.

Categories: Around The Web

Australians can have zero-emission electricity, without blowing the bill

The Conversation - Tue, 2016-12-06 05:07
Rooftop solar proves a challenge to keeping prices low on the grid. Solar image from www.shutterstock.com

The Australian government is reviewing our electricity market to make sure it can provide secure and reliable power in a rapidly changing world. Faced with the rise of renewable energy and limits on carbon pollution, The Conversation has asked experts what kind of future awaits the grid.

Australia’s low-cost electricity, thanks to cheap coal, was once a source of substantial competitive advantage. While Australia’s electricity prices are still below the OECD average, the urgent need to reduce greenhouse gas emissions is a major challenge to cheap electricity.

In a report released today by CSIRO and Energy Networks Australia, we show that Australia is so far making rocky progress on reducing emissions, maintaining energy security and keeping prices low. But we also show how Australia can regain world leadership, delivering cheap electricity with zero emissions by 2050.

A Balanced Scorecard for Australia’s electricity sector in 2016. ELECTRICITY NETWORK TRANSFORMATION ROADMAP The challenge facing Australia

Australia is the world leader in adopting rooftop solar. Rising retail electricity prices and subsidies have encouraged households to embrace solar with enthusiasm. As a result 17% of Australian households now have solar panels.

This can be seen as Australians exercising greater choice about how their electricity is supplied. However, it also highlights some of the problems our electricity network is facing.

Retailers sell electricity in Australia by volume (the kilowatt hours and megawatt hours on your electricity bill). This made sense when most households contained a similar set of fairly low-energy appliances.

But the rapid increase in high-energy air conditioners and the adoption of rooftop solar mean fees are less suited to each customer’s demand on the system or any services they provide.

More panels and electric cars

The are two major opportunities to reduce electricity prices for Australia.

First, we need to harness the power of more households producing their own electricity through solar or other distributed sources. In coming decades, households are expected to invest a further A$200 billion in distributed energy sources.

We need to avoid duplicating network expenditure (poles and wires) and support balancing supply and demand as the share of renewable electricity increases. But this can be an opportunity if we introduce the right prices and incentives.

This means using household devices such as batteries to support the electricity network, and paying customers for this service instead of building more poles and wires. This would require many actions (detailed in the report), including pricing reform, some regulation change, improved information sharing and minimum technology standards.

Second, we need to use the existing network more efficiently. Demand has fallen in recent years, chiefly through improvements in energy efficiency and increasing rooftop solar.

Because of the reliance on volume-based retail pricing, when consumption falls, networks are forced to increase prices to recover the fixed cost of delivering their services. Conversely, if it were possible to increase demand for grid-supplied electricity without increasing the fixed costs of the system, then network price could be stabilised or reduced.

Our research found that electric vehicles offered the greatest opportunity to increase demand for grid-supplied electricity. These have the added benefit of supporting greenhouse gas emission reduction goals.

The report recommends that light vehicle emission standards should be pursued as a relatively cheap way of supporting electric vehicles. Appropriate pricing and incentives will also be needed to encourage car owners to charge their vehicles at off-peak times, reducing the need to add more capacity to the network.

Keeping bills low

Residential electricity bills will need to increase gradually over time in all countries due to the cost of decarbonising electricity supply. Australia’s goal should be to be the most efficient at achieving that.

Relative to taking no action on these issues, CSIRO estimates that the measures described above will together reduce the average residential electricity bill by A$414 per year by 2050.

Projected savings in average residential bills (in real terms) Electricity Network Transformation Roadmap

Those savings are funded through reduced network spending and customers needing to spend less on their own distributed energy devices (to avoid higher bills or go off grid). These savings add up to A$101 billion by 2050.

Cumulative electricity system total expenditure to 2050 (in real terms) compared with the counterfactual (business as usual). Electricity Network Transformation Roadmap

At the same time, customers have more choice to participate in providing services to the grid, are receiving fairer payments for doing so, and the electricity system is using distributed energy resources to balance the system. All of these will help reduce greenhouse gas emissions from the electricity sector to zero by 2050.

The Electricity Network Transformation Roadmap Key Concepts Report will be livestreamed here today at 10am AEDT.

The Conversation

Paul Graham leads the Energy Networks Transformation Roadmap which is funded in equal parts by CSIRO and Energy Networks Australia. CSIRO is responsible for overall program delivery and is a key research provider along with other institutions from Australia, United States and United Kingdom. The roadmap is based on work captured in almost 20 supporting reports available or soon to be published on the Energy Networks Australia webpage.

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Australia's energy transmission industry calls for carbon trading

The Guardian - Tue, 2016-12-06 05:00

Emissions intensity scheme is the least costly way of reducing greenhouse gases, Energy Networks Australia and CSIRO say

Australia’s electricity and gas transmission industry is calling on the Turnbull government to implement a form of carbon trading in the national electricity market by 2022 and review the scope for economy-wide carbon pricing by 2027.

Energy Networks Australia warns in a new report examining how to achieve zero net carbon emissions by 2050 that policy stability and regulatory certainty are the key to delivering lower power prices and reliable electricity supply.

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Experts warn against axing green army without restoring Landcare funding

The Guardian - Tue, 2016-12-06 05:00

Academic decries what he describes as yet another bait-and-switch to reduce overall spending on conservation in Australia

Scrapping Australia’s “green army” without restoring Landcare funding to pre-2014 levels would further weaken community conservation efforts, experts have said.

The Turnbull government is reportedly set to abolish the derided environmental program – to the dismay of its creator and greatest champion, the former prime minister Tony Abbott.

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Scottish fossils tell story of first life on land

BBC - Tue, 2016-12-06 02:03
Fossils of possibly the earliest backboned four-legged animals to walk have been found in Scotland.
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'Human swan' completes three-month journey – video

The Guardian - Tue, 2016-12-06 01:39

Sacha Dench, known as the ‘human swan’ completes her three-month-long paramotor journey from Russia to the UK on Monday. Dench made the record breaking 4,500 mile trip to raise awareness for the dwindling Bewick swan population. The journey followed the migratory path the swans undertake each year. The final leg of the trip involved crossing the Channel

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Ancient shellfish used for purple dye vanishes from eastern Med

The Guardian - Tue, 2016-12-06 01:24

Red-mouthed rock shell was one of main sources of Tyrian purple and study blames its collapse on rising sea temperatures

The shellfish that was one of the main sources of Tyrian purple – one of the most storied and valuable trading products in the ancient world – has disappeared from the eastern Mediterranean coast, amid warnings of an ongoing multi-species collapse blamed on global rises in sea temperatures.

Described by Aristotle and Pliny among other ancient writers, Tyrian purple or imperial purple was a dye extracted from shellfish along the Levant coast and favoured by emperors and kings in a trade of huge value. Associated with royalty, clothes with purple in them were believed to convey high status.

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Robot aircraft take to British skies

BBC - Tue, 2016-12-06 01:02
Robot aircraft are to be tested in UK airspace to help refine systems that control autonomous planes.
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Standing Rock is a modern-day Indian war. This time Indians are winning | Martin Lukacs

The Guardian - Tue, 2016-12-06 00:35

A historic growing movement for Indigenous rights is a key to protecting land and water and preventing climate chaos

As Indigenous peoples faced off against armed police and tanks near the Standing Rock Sioux reservation in Dakota, theirs wasn’t just a battle over a pipeline. It was a battle over a story that could define the future of America.

The Obama administration’s decision yesterday to refuse the Dakota Access pipeline permission to complete its construction has now shaken up that story. Its old version was that Indigenous peoples have always been in the way of progress, their interests a nuisance or threat, their treaties a discardable artifact. In that story, the American heroes forged on these high plains of the west were never the Indians: they were the gold-diggers or gamblers, the cowboys or cavalry.

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Corporate growth still driving deforestation, CDP shows

BBC - Mon, 2016-12-05 23:59
Although progress is being made, up to US $906bn of company turnover is still tied to global deforestation, an assessment suggests.
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