Energy & Resources Talking Points | 17/07/2018

In today’s Talking Points: Chinese energy companies get extra charge from B&R Initiative, Apple announces $300 million clean energy fund in China, Renewables will replace ageing coal plants at lowest cost, Aemo says, Australian Competition and Consumer Commission says people can cut power bills by 25% with stronger competition.

 

Chinese energy companies get extra charge from B&R Initiative

The Belt and Road Initiative, proposed by China in 2013, which is aimed at increasing international cooperation is proving to provide Chinese energy companies with more opportunities to seek overseas expansion.

An enormous demand for power supply has arisen in many of the countries and regions consequent to the plan’s unveiling. “The gap means there is a huge market for new energy. Chinese companies can provide facilities and technological solutions and thus become a key force in reshaping the landscape of the energy provision in the countries and regions involved in the Belt and Road Initiative,” industrial observers said.

Read more: China Daily

Apple announces $300 million clean energy fund in China

Apple in partnership with several of its suppliers has announced ‘The China Clean Energy Fund,’ a $300 million fund for investing in renewable energy projects in China. The project, which was revealed today, aims to produce at least 1 gigawatt of energy through fully renewable means over the next four years.

“Traditionally China has relied on coal, but in the past several years renewable energy has grown dramatically and is starting to take away part of coal’s market share — and with a strong push from China’s government,” David Sandalow, inaugural fellow at Columbia University’s Center for Global Energy Policy, said.

Read more: CNBC

Renewables will replace ageing coal plants at lowest cost, Aemo says

Australia’s energy market operator says the future of power generation in Australia will be renewables with storage, and gas. The Australian Energy Market Operator (Aemo)  states that renewable technologies will replace the power currently supplied by coal generators at the least cost.

30% of Australia’s coal generators will approach the end of their technical life over the next two decades. Aemo states that the lowest-cost replacement options for retiring coal plants “will be a portfolio of resources, including solar (28GW), wind (10.5 GW), and storage (17GW AND 90gw), complemented by 500 MW of flexible gas plant and transmission investment”.

Read more: The Guardian

Australian Competition and Consumer Commission says people can cut power bills by 25% with stronger competition

Australia’s consumer watchdog says households can save up to $415 a year on power bills if greater competition in the electricity sector occurs.

The ACCC states that a lack of competition and policy mistakes have added significant costs to power bills, and that “households are paying far too much for electricity” (Rod Sims, Chairman).Tony Wood of the Grattan Institute agrees with the ACCC, stating “I think the ACCC is absolutely right”.

Federal Treasurer Scott Morrison said the Government will develop a response by the end of this year and would work closely with the states and territories on recommendations that affect them jointly.

Read more: ABC