Alan Kohler is one of Australia’s most experienced business commentators. Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report. Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website. Alan is the regular finance presenter on the ABC News and producer of the popular nightly graph (or two).
Two days after Glencore complained about government subsidies to support new coal mines, it appears common sense is finally prevailing on the government about funding support for the Adani mega coal mine.
Advocates of carbon capture and storage may have assured themselves of its viability by convincing themselves it needs to happens. But just because something apparently should happen, doesn’t mean that it will and time is running out.
Energy storage could have a competitive advantage over gas turbines in meeting peak demand. While both can provide peak capacity, storage can gain extra revenue by taking advantage of smaller price differences that occur on a more frequent basis. It means storage may already be cheaper than gas in meeting peak demand.
The latest CEDEX electricity report now incorporates data on solar generation, which alongside hydro manages a rise in generation as coal stalled. This brought a halt to what had been a steady rise in emissions since the carbon price was axed.
India's pledge for the forthcoming climate conference in Paris reinforces a set of plans to massively upscale investment in renewable energy. Meanwhile its coal generators have suffered record low utilisation of 58.4% last July. It spells bad news for Australian coal exports.
Lawrence Berkeley chart illustrates plummeting 70% drop in contract prices that now average $50 per megawatt-hour, driven not only by large drops in the capital costs of projects but also improved capacity factors.
The risk faced by carbon intensive assets and those that finance them has been highlighted by the Bank of England, yet we lack the necessary disclosure to thoroughly assess the extent of this risk and possible threats to financial stability from high carbon stranded assets.
When Glencore took over Xstrata in the biggest mining merger ever, its CEO said of the acquisition: 'To really screw this up, the coal price has got to really tank'. Unlucky for him that's precisely what it did and Glencore's share price has plummeted by 80% since the merger.
You've got to give the Minerals Council credit for persistence in the face of insurmountable facts against them with their decision to stick with their 'Coal is Amazing' PR campaign. Pity just one comment from the CEO and a single chart destroy their argument.
It appears Greg Hunt now has responsibility for the Clean Energy Finance Corporation and the Australian Renewable Energy Agency. It likely signals that Turnbull will quietly dump attempts to abolish the agencies and the Government’s ideological crusade against renewable energy.