Introduction to Global Change Institute

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1 Policy development to increase the application of renewable energy technologies and benefits for local communities Kongres Ilmu Pengetahuan Nasional X Jakarta, Indonesia November 2011 Introduction to Global Change Institute Mission Statement: - To foster discovery, learning and engagement by creating, applying and transferring knowledge to address the challenges of a changing world. 1

2 Global Change Institute Key issues: - Why (and how do we) transition to a sustainable energy economy; What will our fuel mix look like in 20, 30 or 40 years time; and What policy measures are needed. 2

3 Why Renewable Energy? Global Renewable Energy Potential Source: ARENA (2008) 3

4 Benefits of moving to Renewable Energy Key benefits are to remote communities Queensland still has 33 diesel powered power plants supporting remote areas. This is also true many Asian countries, particularly due to remoteness Objectives/Key Questions. Opportunities and Challenges Global Development Short-term v Long-term Issues Grid Renewables v Baseload Policy How do we get Government to look beyond the next election How do we build skills and expertise 4

5 How do we transition? We will see a move to cleaner fuels before renewable fuels? Gas and nuclear are both cleaner renewable fuels. Will they be acceptable within the new energy economy? Decision Making Look at how business decision making has changed: - Technology Impact Assessment Social Impact Assessment Environmental Impact Assessment 5

6 Indonesia s Future Energy Mix Target is to have 95% of homes with electricity by 2035 (1.3 Million New Connections per year) Clean Energy is currently 5%. Target by 2035 is 30%. Queensland s Renewable Energy Mix MW Source: OCE (2009) 6

7 Policy Issues What is and has driven energy policy? Most countries renewable energy policy has been driven by energy security concerns. Australia s policy is being driven by climate change issues. Policy Issues Australia is ahead of the many of the world s leading industrial countries in the development of renewable energy, but well behind in its deployment. WHY? We have an abundance of fossil fuel reserves: - Coal over 200 years reserves Gas over 50 years reserves and growing Uranium approximately one third of worlds reserves 7

8 Policy Issues Asian Region currently generates 78% of its electricity from coal Indonesia is the leading oil producer in the region but production has fallen even though consumption has increased from 700,000 BPD in 1992 to 1,600,000 BPD in 2008 Policy Issues What is the problem with our current policies? We don t really have any firm direction [particularly at Federal level]. What do we do at a State and Local Level? Policy can determine the fuel mix 8

9 Policy Issues One of the key areas where Government can help is by creating maps of where our renewable resources are located. This will help planning authorities, existing and potential generators as well as investors and financiers. Once you know what resources you have and where they are located, then you can set policies to have those resources utilised Policy Measures What can we use? Subsidies Tax Incentives Emission Trading Schemes Carbon Taxes Voluntary Schemes Renewable Energy Portfolio Standards Sustainable Energy Portfolio Standards Green Certificates Renewable Energy Fund Feed-in Tariffs R & D Grants Loan Programmes 9

10 Why is it important? Concluding Comments Globally we have an abundance of renewable energy options. An ambitious targets have been set. Current policies may not see these targets met. Additional policy measures are needed and much of this will be required at the State level targeting those resources with which the State is plentiful. This is today s challenge as we can t afford to keep putting it off until tomorrow. 10

11 Thank you Craig Froome Global Change Institute The University of Queensland Brisbane, Australia Phone: Fax: c.froome@uq.edu.au 11

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