Tag Archives: electric vehicles

NSW Net Zero Plan Stage 1: 2020 – 2030

Key highlights

100% Renewables welcomed the Department of Planning, Industry and Environment’s Net Zero Plan Stage 1: 2020–2030[1], released on 14 March this year, along with the release of two additional Renewable Energy Zones in regional NSW.

While the Plan’s release has been understandably overshadowed by the Covid-19 global pandemic, it is nonetheless a big milestone that sees the first of three clear, 10-year plans released that will set a pathway to net zero emissions by 2050.

It takes an aspirational 30+ year goal and brings it back to tangible actions, cross-sectoral measures, and a range of funded programs that will help governments, business and householders in NSW play their role in moving NSW to a low carbon economy.

From our reading of the Plan, there are a number of key highlights:

  • Action is grounded in science and economics, and a central focus of the Plan is about jobs that will be created and about the lowering of energy costs for consumers. Emissions reductions are a by-product of good investments in new technologies over the long term that boosts overall prosperity. Too much of the negative commentary on decarbonisation is about jobs that will be lost, and more focus is needed on the jobs that will be created, what they will be, and importantly where they will be.
  • We already have many of the technologies to drive significant abatement. Investing in breaking down barriers to these technologies is the simplest and shortest path to accelerating investment in these technologies, like:
    • energy-efficient appliances and buildings,
    • rooftop solar panels,
    • firmed grid-scale renewables,
    • electric vehicles and
    • electric manufacturing technologies.

Electrification and switching to renewables are core short, and medium-term decarbonisation strategies of many of our clients and this focus can help accelerate this transition.

  • The Plan provides certainty to investors that NSW is a place to invest in renewable energy, efficient technologies and sustainable materials. It also signals that NSW aims to lead in the development of emerging technologies that create new opportunities, whilst being flexible to re-assess and re-prioritise efforts during the Plan period.
  • Reducing our emissions by 35% by 2030 and to net-zero by 2050 is a shared responsibility, and the Plan clearly sets out the expectation that all business sectors, individuals and governments must play their part.

  • A broadening of the focus of abatement efforts to encompass low-carbon products and services, integrating these into existing and new initiatives, and providing consumers with more information to influence decisions is welcome.
  • Clarity on some of the funding, targets and programs that will help drive this change, such as:
    • $450 million Emissions Intensity Reduction Program
    • $450 million commitment to New South Wales from the Climate Solutions Fund
    • $1.07 billion in additional funding via both NSW and Commonwealth Governments in a range of measures
    • Development of three Renewable Energy Zones in the Central-West, New England and South-West of NSW to drive up to $23 billion in investment and create new jobs
    • Establish an Energy Security Safeguard (Safeguard) to extend and expand the Energy Savings Scheme
    • Expanded Energy Efficiency Program
    • Expanded Electric and Hybrid Vehicle Plan with the Electric Vehicle Infrastructure and Model Availability Program to fast-track the EV market in NSW
    • Primary Industries Productivity and Abatement Program to support primary producers and landowners to commercialise low emissions technologies
    • Target of net-zero emissions from organic waste by 2030
    • Development of a Green Investment Strategy, with Sydney as a world-leading carbon services hub by 2030
    • Enhancement of the EnergySwitch service by allowing consumers to compare the emissions performance of energy retailers
    • Advocate to expand NABERS to more building types, and improve both the National Construction Code and BASIX
    • Establishment of a Clean Technology Program to develop and commercialise emissions-reducing technologies that have the potential to commercially out-compete existing emissions-intense goods, services and processes
    • Establishment of a Hydrogen Program that will help the scale-up of hydrogen as an energy source and feedstock, and the setting of an aspirational target of up to 10% hydrogen in the gas network by 2030
    • Aligning action by government under GREP with the broader state targets through clear targets for rooftop solar, EVs, electric buses, diesel-electric trains, NABERS for Government buildings, power purchasing and expansion of national parks

We believe that the Net Zero Plan Stage 1: 2020–2030 is a good start in the right direction for NSW. We are looking forward to helping NSW organisations to set and reach their renewable energy and abatement goals, and to avail of available information, support and incentives that help them achieve their goals.

We will be keeping track of the Plan as it is rolled out and evolves over time, and will keep clients informed about opportunities that are aligned with their needs and objectives.

[1] © State of New South Wales 2020. Published March 2020

100% Renewables are experts in helping organisations develop their renewable energy strategies and timing actions appropriately. If you need help with developing emission scenarios that take into account policy settings, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

Challenges with achieving ambitious targets

Challenges with ambitious targets
Challenges with ambitious targets

In part 1 of the blog series, we investigated what the scope of your climate change target could be. In part 2, we looked at the global and national goals you should be aware of. In this blog post, we will shed light on some of the challenges that you may face when setting ambitious goals.

Striking a balance

Setting targets is often about striking a balance between what we know can be achieved with today’s commercially available solutions and what will be available in coming years.

This is why many targets for renewable energy, for example, are 100% by 2030. It is expected that battery storage for solar and renewable energy sourcing for energy supply will be readily available and cost-effective by that time.

Interim targets tend to focus on onsite measures that are known to be cost-effective now, such as energy efficiency and solar panels.

Challenges with achieving ambitious targets

In our experience, both interim and ambitious long-term targets can present challenges for you. Here is a list of some of those challenges.

Ongoing internal support, resources and funding

This is often the most common barrier and challenge; how to gain and sustain the support and funds internally to make efficiency and renewable energy initiatives happen. There are usually limited funds, competing priorities and resources are stretched.

Without internal support at senior level as well as people to develop business cases and implement projects, most programs do not last or succeed.

Strategy tips:

  1. One or a few key staff and managers who want to see continued action on renewables and emissions reduction, and make it a priority on an ongoing basis.
  2. Having clear financing strategies for renewables, efficiency and other emissions reduction measures, including awareness of state and federal incentives such as the Energy Saving Scheme and the Renewable Energy Target, a consideration to fund from Capex or a loan, revolving energy funds or similar.
  3. Alignment of renewable energy and emissions reduction plans with your organisation’s strategy so that this is embedded in your organisational priorities.

Understanding electricity markets and your energy purchasing processes

Energy procurement will most likely deliver the bulk of your organisation’s ambitious renewable energy goals, so without a plan, you may not be able to achieve an ambitious renewable energy goal ahead of the ‘greening’ of the grid.

The ability to meet an ambitious renewable energy goal cost-effectively is heavily influenced by how you source electricity from the market. Whereas in the past, GreenPower® was available, but at a cost premium, many organisations are now able to source energy from renewable energy projects at similar or even lower cost than conventional power.

Strategy tips:

In this rapidly evolving environment, you need to take time to understand how the electricity market and renewables procurement work and develop your energy sourcing strategy accordingly. In particular, investigate the following aspects of energy procurement:

  • The current and future electricity and renewable energy market
  • Contract terms for renewable energy supply
  • Types of contracts for renewable energy purchasing
  • Interest in collaboration or partnering for volume to achieve better pricing are all aspects of energy procurement

Transport and waste

Transport and waste can be sources of large carbon emissions. However, solutions to achieve step-change in energy demand, renewable energy or carbon emissions can be limited, particularly if your organisation is already focusing on emission reduction in these areas.

In our experience, the level of focus on carbon emissions and renewables for these sources is low or lags the focus that is applied to electricity and stationary gas. This often leads to the omission of these sources from targets.

An emerging aspect of this is the potential for electrification of vehicles to change electricity demand and thus increase the amount of renewable electricity that needs to be sourced to meet ambitious targets. Some organisations are beginning to assess their future energy demand with an EV fleet and incorporate this into their long-term forecasts.

Strategy tips:

Consider including transport and waste in future targets if they are not already part of your goal. Make sure that you apply appropriate resources to understand opportunities and future trends.

The emergence of electric vehicles will introduce new challenges for the identification of new opportunities. A good strategy is to forecast what changes will occur and when. This may not be a significant factor for the next 4-5 years but will almost certainly be a more important issue as we approach 2030.

Organisational growth

While you are implementing efficiency and renewables, your energy demand may grow with organisational growth. Your emissions intensity may reduce, but your absolute emissions may still be growing.

Strategy tips:

The greater the level of organisational support and understanding of the nature, scale and timing of opportunities, as well as an understanding of the type and scale of changes that will occur to your assets over time helps to set targets that are realistic and achievable.

You need to take these changes into account so you know what combination of emission reduction options can help you meet your target in the most cost-effective way.

Conclusion

You may find you have only achieved a small part of your goal after a few years, despite the fact you have progressed several onsite solar and energy efficiency projects. Often, building energy efficiency and onsite solar can deliver part of the solution, but each project is individually small.

This is beginning to change with cheaper solar panels making larger-scale systems cost-effective, which in turn has a greater impact on emission reduction and onsite renewable energy generation.

The overall effort towards ambitious goals is likely to include a small number of measures that have individually significant impact (e.g., a renewable energy PPA), plus a large number of small measures that have low impact but are good for the bottom line.

Your strategy to meet ambitious targets should include both these measures.

100% Renewables are experts in helping organisations develop their renewable energy strategies and timing actions appropriately. If you need help with developing a target and action plans that help you meet this target, please contact  Barbara or Patrick.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.