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DID YOU KNOW THAT SMART POWER OFFERS...
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Energy Auditing
Energy audits are our specialty. At Smart Power we can tailor these audits to your needs or run the audit in accordance with industry standards. Our accredited auditors have considerable experience within the commercial, industrial and statutory authority sectors.
The audit reports outline how energy is consumed on a site and identify recommendations for potential savings. The recommendations are presented in terms of cost benefit, implementation and projected annual savings. Generally the recommendations in our audits lead to potential savings of 10%-30%.
We can also arrange and manage the implementation of the audit recommendations.
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EVER WONDERED ABOUT....
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Distributed Generation?
Most of a country's electricity is generated in large, centralised power stations which can be a long way from where the electricity is used. The electricity is transported around the country through transmission lines, and then carried through local distribution networks to where it is needed.
Distributed generation is different - electricity is generated from small-scale systems and is used on-site or nearby. It can be used to generate electricity for homes, farms, businesses and industries.
Distributed generation projects are hooked up to the local distribution network. These local networks are connected to the national grid. This means that when there is not enough electricity being generated by the local project, users can still get electricity from the network. It also means if excess electricity is being generated, the excess can be exported into the network.
Electricity from distributed generation projects can be generated using different systems such as:
In some cases, 'cogeneration' heat is produced as well as electricity.
Distributed generation can contribute to an efficient and renewable electricity future by potentially:
* Increasing the use of renewable sources of energy
* Improving the efficiency of our electricity system by reducing transmission and distribution losses
* Improving the security of our electricity supply
* Deferring the need for lines upgrades where it is more cost effective to invest in localised energy generation projects.
EECA have produced an introductory guide to micro-generation options, available here.
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Greetings!
Welcome to this edition of "Get Smart", Smart Power's regular bulletin. Get Smart provides a round-up of energy news and views from Australia, New Zealand and around the world.
In "Company Voice" this month, director Rod Boyte talks about the impact of environmental charging on power prices in Australia.
As always your feedback is most welcome. |
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AUSTRALIAN ENERGY HEADLINES
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Regulator backs calls for end of price controls in electricity market
The NSW government's energy pricing regulator has thrown its weight behind moves to remove all price controls over electricity, arguing that controls have not protected households from hefty price rises in recent years.
''Retail price regulation has not protected consumers from electricity price shocks,'' the Independent Pricing and Regulatory Tribunal chairman, Peter Boxall said.
''A well-functioning retail market - in which there is competitive rivalry between electricity retailers - is the best way to ensure that ... electricity prices are driven towards the efficient cost of retail supply.'' Read more
One man v the system: power industry says sorry
In the morning, Bruce Robertson and his family were facing a lawsuit from six state electricity giants. By early afternoon, they were fielding an apology.
Grid Australia, the peak body representing the nation's $10 billion transmission industry, had threatened to sue the cattle farmer for defamation.
As an outspoken critic of the power companies, Robertson had exposed their inflated forecasts for electricity demand, and the ''gold-plating'', or excessive spending, which has been the driving force behind the rise in electricity bills.
After revelations about the lawsuit in the Fairfax press however, an outcry of public support for the farmer from the mid-north coast of NSW forced an embarrassing back-down. Read more
Electricity profits up $100m, but users switch off The profits of electricity companies increased by $100 million in the past financial year and power bills are rising despite consumers using less electricity, an audit of state-owned energy companies has found.
The NSW Auditor-General, Peter Achterstraat, said wholesale electricity prices had fallen in 2010-11 because NSW consumers were using less electricity, but retail prices were rising because the companies were spending more on maintenance of the distribution systems, especially poles and wires.
''The wholesale prices are down, down, down, but the retail prices are up, up, up,'' Mr Achterstraat said. Read more
Carbon tax triggers shifts in electricity generation
Coal-fired power generation has fallen in the wake of the midyear launch of the carbon tax, which also triggered a lift in hydro-power generation, a detailed analysis by the Australian Energy Market Operator has shown.
On July 1, a $23-a-tonne tax on carbon emissions was introduced, which pushed up wholesale electricity prices sharply, to about $58 per megawatt hour, although the price has since eased to about $50 due primarily to sluggish demand.
The carbon tax lifted hydro-power generation to 10.2 per cent of the total electricity produced in the national electricity market from 8.4 per cent previously, the analysis found. Read more
Victoria's electricity sector the 'most efficient'
Distorted demand forecasts have driven much of the over-investment in the electricity sector in recent years, with the privately-owned sector in Victoria the most efficient, a detailed industry study has shown.
The study, by industry expert Bruce Mountain, found that a "significant part" of the explanation for over-investment "appears to be demand forecasts that have consistently been higher than actual demand".
"This appears to be the case in all [national electricity market] regions except Victoria," the study found.
Excessive spending on upgrades to the electricity networks has fuelled surging electricity prices, which have doubled in some parts of the national electricity market over the past five years. Read more
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NEW ZEALAND ENERGY HEADLINES
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Weather and economy weigh on power sector
Dry weather and a sluggish economy are the biggest challenges for New Zealand's electricity companies right now, according to a report out recently.
PricewaterhouseCoopers has released its Leading Energy publication, which shows increased competition and legislative changes have brought significant changes to the electricity sector.
But kiwi power companies are struggling in the face of stalled consumer demand for electricity, said PwC consulting partner Chris Taylor.
"Given all the rain we've had recently, I know it may be hard to believe but this financial year 2012 has been one of the driest on record.
"As a result, South Island catchments have experienced some of the lowest recorded hydro inflows and each of the generators has been impacted." Read more
Power retailers, brewery top Fast 50 list
Two electricity retailers and a brewery are among the fastest growing business in New Zealand and have topped this year's Deloitte's Fast 50.
The Fast 50 index, released this evening, ranks businesses according to their revenue growth over the past three years.
Auckland-based Pulse Utilities NZ took the top spot this year with revenue growth of 2637 per cent, while another electricity retailer PowerKiwi came second with growth of 1916 per cent.
It is the second year running where an electricity retailer has topped the list, with Powershop leading the index in 2011. Read more
Vector buys Contact metering business for $63m Vector is buying Contact Energy's gas metering business for $63 million and is signalling an upgrade of the 128,000 meters acquired. "We have been trialing smart gas metering technology and in the longer term we hope to retro-fit this technology on the acquired gas meter fleet as customers request such technology," Vector chief executive Simon Mackenzie said. Contact acquired the meters from Enerco in 1999 and their sale to Vector is subject to Commerce Commission clearance. Contact said it would retain ownership of the data the meters provided so it could maintain its relationship with the gas customers affected. Read more Country warms up, under budget The Government has helped insulate 12 per cent of New Zealand houses in just over three years under its Warm Up New Zealand scheme - but Auckland is lagging behind with 9.9 per cent of homes insulated. About 185,665 properties have been insulated under the initiative and the Government has spent $252 million of its $347 million budget, according to figures released under the Official Information Act by the Energy Efficiency and Conservation Authority. The scheme subsidises up to 33 per cent or a maximum of $1300 for the cost of underfloor and ceiling insulation in under-insulated houses built before 2000. Community Services Card holders are eligible for a subsidy of up to 60 per cent under the scheme. Read more Electric cars: Zip and Zap After years of hype about electric cars saving the planet from global warming - and more than a century since the first models were produced - there are still only about 60 on New Zealand roads. But Holden's multi-media advertising campaign for its extended-range electric-petrol Volt sedan, which went on sale for $85,000 this month, reflects a growing commitment by the motor industry to technology it was once accused of trying to kill off. The Government's Energy Efficiency and Conservation Authority believes prices for electric cars will not stay so astronomically high for long, and has started offering public agencies loans to cover their excess over conventional vehicles if fuel savings from high usage can justify the investment. Read more |
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INTERNATIONAL ENERGY HEADLINES
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Centrica under fire for profits as businesses desert British Gas for cheaper rivals
British Gas owner Centrica came under fire after it said its household energy supply business was on track for a 6pc profit rise - the day before it hit its 10m customers with a 6pc price increase.
The energy giant was also forced to admit that businesses were deserting British Gas for cheaper rivals - leading to a 7pc fall in the number of business customers since the start of the year.
Centrica said that group earnings for 2012 would grow in line with market expectations of a 15pc increase in adjusted operating profit, to £2.79bn.
This is likely to be driven by a 35pc leap in profits to £1bn in its 'upstream' division, which produces oil and gas. Read more
Electricity from burning trees is 'dirtier than coal'
Power stations around the UK are being encouraged to burn wood as part of plans to cut carbon emissions.
The Government claims that burning "biomass" is carbon neutral and offers subsidies to power stations for converting from coal to wood.
Drax, the country's biggest coal-fired power station, is aiming to take half of its fuel from biomass and Eggborough has announced its intention to fully convert to burning wood.
The amount of biomass burned for electricity has doubled over the past year to about 3 million tons and is expected to increase ten-fold by 2017, meaning most of the wood will have to come from abroad. Already half the biomass burned is imported.
However, a damning new report by the RSPB, Greenpeace and Friends of the Earth points out that in fact burning wood from whole trees produces more carbon than burning coal per unit of electricity. Read more
Desertec's Promise of Solar Power for Europe Fades
As recently as three years ago, many thought that it was only a matter of time before solar thermal plants in North Africa supplied a significant portion of Europe's energy needs. But Desertec has hit a road block. Industrial backers are jumping ship, political will is tepid and a key pilot project has suddenly stalled.
Supporters hailed the Desertec Industrial Initiative as the most ambitious solar energy project ever when it was founded in 2009. Major industrial backers pledged active involvement, politicians saw a win-win proposition and environmentalists fawned over Europe's green energy future. For a projected budget of €400 billion ($560 billion), the venture was to pipe clean solar power from the Sahara Desert through a Mediterranean super-grid to energy-hungry European countries.
Today, a scant three years later, there is still little to show for the project but the ambition. Read more
The High Price of Clean Energy Tax Breaks and Subsidies for Industry Divide Germans
Major industry is being spared of the costs relating to Germany's expensive shift from nuclear to green energies. The burden is being placed on small and medium-sized business as well as German consumers, who pay the second highest price for electricity in Europe. Resentment is starting to grow. Read more
Algeria to exploit controversial shale gas
Algeria, the world's fourth-largest gas exporter, has decided to develop its shale gas potential as well, but experts fear this could cause severe environmental problems.
Officials say the country's shale gas reserves are 17 trillion cubic metres, or around four times greater than its current known gas reserves.
Algeria may be the world's eighth-largest natural gas producer in 2011, according to the BP Statistical Review of Energy, but domestic consumption is surging. Official forecasts say that, from 2019, local demand will eat up all the country's production.
At present, 50 years after it gained independence, the country remains almost totally dependant on hydrocarbons, which account for 90 per cent of its exports.
So as long as it fails to diversify its export base, it has no alternative than to develop shale gas, an unconventional fossil fuel, to secure its energy future, experts say. Read more
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THE COMPANY VOICE
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Operating from Smart Power Utilities in Melbourne, Rod Boyte is the key account manager for our Australian customers. Along with fellow Director Anne Herrington, Rod set up Smart Power in 1993. Rod is involved in maintaining and developing the business - with key interests in the provision of energy audits and high level consultancy on energy purchasing strategies.
"All the recent discussion around a carbon charge in Australia has obscured other "environmental charges" already in place which add significantly to power prices. If you look at Victoria as an example there are the federal government LRET and SRES charges (over 1 c/kWh combined) and the State based VEET (approx 0.5 c/kWh) on top of the carbon charge (approx 2 c/kWh). When compared to a carbon exclusive energy only price of about 4 c/kWh it can be seen that the combined impact of all these charges nearly doubles the energy component of power prices!
When choosing a potential retailer, end-users of electricity need to be very aware of these environmental charges. How they are passed on is not regulated meaning that the retailer can bundle these charges up in various ways. Retailers also tend to "mark-up" the environmental charges to varying degrees. Bottom line - include environmental charges in your tenders and ensure that you make comparisons like-for-like as much as you can.
A special note on the VEET. Currently retailers with less than 5000 NMI's in Victoria have been exempt from being liable for VEET. Some reasonably significant retailers have been in this position as it hasn't mattered how much energy they sell as long as they keep their customer numbers down. This is changing - the Regulator has plans in place to add energy to the threshold. The level would be set at about the amount of energy 5,000 residential customers would use. Any retailer with just a few large industrial customers would cross this threshold.
Why does this matter. Non-liable retailers have been very competitive in tenders in Victoria as they immediately have a 10% advantage over liable retailers. However they all have clauses allowing them to pass through VEET charges if they become liable. If you are already contracted to a non-liable retailer be aware that things are likely to change and you will need to allow for increased costs (potentially from as early as the start of 2013). If you are currently tendering or likely to be in the near future then include the likely costs of these retailers becoming liable in your analysis."
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