A cleaner environment makes economic sense: new report
5th April 2005
Substituting clean energy alternatives for a proposed coal-fired power station in NSW would create more rural jobs, cost less and cut greenhouse gas emissions by three quarters by 2010, a new report has found.
The report, Towards New South Wales’ Clean Energy Future by Dr Mark Diesendorf from the University of New South Wales’ Institute of Environmental Studies, will be presented to NSW State Parliament on Wednesday.
The report shows that a mix of natural gas, wind power, bioenergy and energy efficient practices could economically be substituted for the proposed 1000MW coal-fired power station.
“There is no technical or economic barrier we face in converting to the use of cleaner energy and in giving ourselves a healthier environment,” says Dr Diesendorf, who wrote the report for the Clean Energy Future Group. “The real barriers are institutional, organisational and political.
“One of the economic advantages of substituting coal-fired energy with renewable energy would be a net gain in jobs within the State. This is particularly important at a time when the numbers of jobs in coal-mining and the centralised electricity industry are falling rapidly.”
Bioenergy – the burning of agricultural residues from crops such as wheat and other grains, sawmill waste and municipal, industrial and commercial wastes to create electricity – has greater employer potential than other renewable sources of electricity, the report concludes. “Small power stations situated close to farms would provide new employment opportunities for rural areas,” Dr Diesendorf says, “possibly five times as many jobs as when generating the same amount of electricity from coal.”
Wind farms could also produce four to six times more jobs. This could be achieved by boosting the local production level of wind farm components to 80 percent of the project’s economic value. Even at the current 50 percent local content level, two to three times more jobs could be created using the suggested clean-energy strategy.
In the event that international greenhouse gas constraints are tightened over the next decade or so, high dependence on coal would also become a major liability, the report states.
Money saved from using energy less wastefully would cover the additional costs of renewable energy and natural gas, says Dr Diesendorf. Packages of energy efficiency and cleaner energy supply could be delivered to users by energy service companies. These companies would provide a holistic energy service, comprising the provision for example of electricity, lighting, insulation, solar hot water and related services.
Key recommendations for efficient energy use include:
The report, Towards New South Wales’ Clean Energy Future by Dr Mark Diesendorf from the University of New South Wales’ Institute of Environmental Studies, will be presented to NSW State Parliament on Wednesday.
The report shows that a mix of natural gas, wind power, bioenergy and energy efficient practices could economically be substituted for the proposed 1000MW coal-fired power station.
“There is no technical or economic barrier we face in converting to the use of cleaner energy and in giving ourselves a healthier environment,” says Dr Diesendorf, who wrote the report for the Clean Energy Future Group. “The real barriers are institutional, organisational and political.
“One of the economic advantages of substituting coal-fired energy with renewable energy would be a net gain in jobs within the State. This is particularly important at a time when the numbers of jobs in coal-mining and the centralised electricity industry are falling rapidly.”
Bioenergy – the burning of agricultural residues from crops such as wheat and other grains, sawmill waste and municipal, industrial and commercial wastes to create electricity – has greater employer potential than other renewable sources of electricity, the report concludes. “Small power stations situated close to farms would provide new employment opportunities for rural areas,” Dr Diesendorf says, “possibly five times as many jobs as when generating the same amount of electricity from coal.”
Wind farms could also produce four to six times more jobs. This could be achieved by boosting the local production level of wind farm components to 80 percent of the project’s economic value. Even at the current 50 percent local content level, two to three times more jobs could be created using the suggested clean-energy strategy.
In the event that international greenhouse gas constraints are tightened over the next decade or so, high dependence on coal would also become a major liability, the report states.
Money saved from using energy less wastefully would cover the additional costs of renewable energy and natural gas, says Dr Diesendorf. Packages of energy efficiency and cleaner energy supply could be delivered to users by energy service companies. These companies would provide a holistic energy service, comprising the provision for example of electricity, lighting, insulation, solar hot water and related services.
Key recommendations for efficient energy use include:
- Strong energy performance standards for new renovations of existing buildings and for all existing buildings that are owned or tenanted by government.
- Substantial incentives for the expansion of the use of solar hot water, gas-boosted wherever possible.
- ‘Smart’ meters that will make users pay the full cost of air-conditioning and other high consumers of energy, especially during peak periods.
- Limiting the carbon dioxide level per unit of electricity generated on all new power stations and major refurbishments.
- Tradeable emission permits or a carbon levy, implemented with other states.
- The requirement that retailers submit Renewable Energy Certificates (RECs) annually to the State Government as a licence condition, in addition to RECs surrendered to the Commonwealth Renewable Energy Regulator.
Click here for a full copy of the report.
Contact: Dr Mark Diesendorf, Institute of Environmental Studies, UNSW, tel. 9385 5707,
mob. 0402 940 892, email m.diesendorf@unsw.edu.au
Media contact: Sarah Wilson, UNSW Media unit, tel. 9385 8079, mob. 0412 413 923, email sarah.wilson@unsw.edu.au
Date issued: 4 April 2005
Contact: Dr Mark Diesendorf, Institute of Environmental Studies, UNSW, tel. 9385 5707,
mob. 0402 940 892, email m.diesendorf@unsw.edu.au
Media contact: Sarah Wilson, UNSW Media unit, tel. 9385 8079, mob. 0412 413 923, email sarah.wilson@unsw.edu.au
Date issued: 4 April 2005
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