Maximising the value of technology in the energy sector – energy white paper

ATSE welcomes the Australian Government’s release of the National Energy Policy Framework 2030 strategic directions paper and is pleased to provide comment on the Discussion Paper entitled Maximising the Value of Technology in the Energy Sector. There are significant challenges to accelerate the deployment of technology to meet climate change targets that are being set by Government.

In summary, the main points of the Academy’s submission are:

1. The Australian community expects the energy technology mix to deliver energy security for stationary electricity generation and an assured supply of transport fuels at least equivalent to present levels through to 2030 and beyond.
2. Energy technology is capital intensive and needs investors prepared to accept risk. While the new suite of Government programs is generous, most still require the proponent to provide at least matching funds for grants.
3. Two classes of technology strategically fit Australia’s interests. The first includes energy resources which no other economy will develop. Here Australia must carry the development task. Examples include Australia’s brown coal reserves and geothermal resources. The second includes technologies in which Australia has strong inherent advantages. Examples include carbon capture and storage and certain advanced solar thermal and photovoltaic technologies.
4. International collaboration being fostered by Australia in carbon capture and storage has considerable merit. However it is early days; before embarking on further worldwide initiatives it might be desirable to learn from this experience.
5. To meet declared emissions targets the cost of energy will undoubtedly need to rise substantially. Appropriate government programs should target energy efficiency and energy conservation behaviours so, while unit costs (both electricity and transport fuels) may even double, user costs will be minimised.
6. While Governments should not try to ‘pick winners’, they need to ensure that funds outlaid to support the innovation chain are well invested, not wasted on duplication, pipe dreams or projects where a commercial pathway is unclear.
7. The Government needs to follow the White Paper with more detailed strategic technology planning, based on rigorous numerical analysis rather than unsupported aspirations, involving energy industry players and leading researchers.