15th December, 2007

IT MAY be in the shadows of the $15 billion electricity privatisation proposal, but the issue of whether the state's next baseload power station uses coal or gas runs to the heart of this week's climate talks in Bali.

Cutting carbon emissions by a quarter by 2020 crystallises the debate over the energy source for the state's next baseload power station, which would operate 24 hours a day.

The Iemma Government says it wants private investors to build the next baseload power station. But what will the energy source be? Coal is cheap, but a heavy emitter of carbon, so its owners would have to be big buyers of carbon credits once a carbon-trading regime is introduced, reducing much of its traditional price advantage. Gas is a lighter emitter, but more expensive.

Buyers of the Government-owned power generators - all coal - will bear the cost of retro-fitting them with next-generation technology to reduce carbon output. The cost of this is estimated by the State Government at up to $4 billion - a significant burden for the buyers of the power companies, which would need to be completed within a little more than a decade of buying the assets.

NSW has built its electricity industry on coal. It is cheap and plentiful, the Government gains mining royalties and there are plenty of jobs for coalminers. This is not the case with gas.

NSW has negligible gas reserves, although gas exploration programs have started in the far north, around Casino, as well as around Gunnedah in the north-west, with small gas-fired electricity stations either operating or planned in both areas. Even if large gas reserves were found, NSW is still likely to be a large "importer" of gas from other states, most likely Victoria, so the economic benefits would flow elsewhere.

Even so, large gas-fired power plants are being built already in Wollongong and Wagga Wagga, and are planned for Nowra, Marulan south of Sydney, Wellington in the state's west and at Cobar in the far north-west.

No private investors are studying coal-fired power stations, partly due to the high capital cost compared with gas, but also the carbon pricing risk with a trading regime yet to be introduced.

Operators of coal-fired power stations are looking to clean-coal technology to maintain their competitiveness as a power source from 2020, when much of this technology is expected to be commercially available, with gas the transition energy source until then. The recent surge in the price of coal-fired generators has made gas competitive with coal, irrespective of the impact of carbon prices.

27th August, 2007

EnergyAction has embarked on our own local green quest, in order to save money and reduce the impact of our business on our environment. In the last 12 months, and as our business has grown, we have conducted the following retro-fits in order to reduce our energy usage:
1. replaced all 36 watt T10 fluorescent light tubes with 28 watt T5 fluorescent light tubes - increasing lighting levels, improving power factor and reducing energy consumption by 12%;

2. replaced all standard 100 watt CRT monitors with 30 watt 15" flat panel monitors - improving comfort, and reducing energy consumption;

3. integrated motion sensitive lighting controls in all meeting rooms;

4. integrated voltage controllers on all lighting circuits in order to reduce lighting load by a further 30%;

5. purchased an integrated printer/ copier/ scanner fax: replacing its bulkier and power hungry predecessors, and reducing the heating load in the services room;

5. send communication electronically (wherever possible, including faxes), rather than freighting paper - even this newsletter is delivered electronically to reduce costs for all of us;

6. planted a tree in the Operation Directors office in order to absorb his direct carbon emissions.

In addition, we have committed to purchasing 100% of our office power from GreenPower accredited energy sources. The reason our business adopted this means of carbon offsetting for its direct emissions is that our business goals are aligned with the development of clean and renewable energy technology. Sponsoring this market is a clear signal to all stakeholders that EnergyAction is active in the pursuit of this objective. We chose GreenPower as an alternative to other carbon offset mechanisms, because we see that the GreenPower badge is a powerful, auditable and instantly recognisable signal which our customers and staff can identify immediately as a credible means of addressing carbon emissions and other pollutants.

Our experience to date is that the purchase of renewable energy is one of the simplest methods of acting locally to address carbon emissions. Accredited GreenPower is energy derived from renewable generation sources that meet strict environmental standards, and comply with the audit requirements of the GreenPower steering committee. Specifically, to attain a GreenPower provider status, a generator must be a new renewable energy facility that was built since January 1997 and does not double count its output for renewable energy certificates or any other form of certification. GreenPower is generally sold as a premium above black energy by Energy retailers and other providers. In order to find the best price - and the best advice - to support your next GreenPower purchase,

 

20th November, 2006

Acknowledging the importance of energy security and sustainable outcomes to the future of civilization on this planet, EnergyAction endorses the G20's appeal for measured reform across the world's energy markets. Specifically, EnergyAction will continue to support competition in Australia's energy market, and assist it to become a "well-functioning market characterised by clear price signals, open trade and investment, market transparency, good governance, and effective competition among firms". According to EnergyAction's Sales Director, Barry Denton, these are the values which underpin the services that EnergyAction brings to its suppliers and customers each and every day. EnergyAction offers transparent reverse auction services to energy buyers and suppliers in Australia. For the full text of the G20 communique made in Melbourne on the 19th November, go to http://www.g20.org/documents/communiques/2006_australia.pdf

31st July, 2006

To help us celebrate the launch of our new website and enhanced online auction platform, one of our major competitors offered this testimonial praising online reverse auctions as a means of securing an energy contract: Energy buyers will "profit from lower energy prices through the use of an efficient "real-time" negotiation tool". In addition, "Energy buyers benefit from lower energy prices as real-time contract award reduces the price validity risk premiums traditionally applied by retailers". We acknowledge the flattery implicit in our competitors' imitation of our modus operandi, and welcome them to the market. To account for the complexity of your energy needs, EnergyAction offer you a simple and straightforward approach to your energy contract negotiations: we do it all day, every day, and have secured more than 1200 contracts using our online reverse auction technology since our inception in May 2000.

25th July, 2006

Simon, our over-achieving auction manager is mad mad mad with his desire to share the good oil about EnergyAction with you. Stay tuned for regular updates from the hottest desk of them all: the energy auction desk...