ABSTRACTS OF

The Australian Institute of Energy

National Conference 1999
Energy for the New Millennium
The University of Melbourne
24 to 25 November 1999
 
This conference addresses key issues such as global warming, population growth, environment degradation, resource depletion and the challenges of developing a sustainable energy industry into the next century. 


ENERGY FOR THE NEW MILLENIUM - SETTING THE SCENE 
From the Century of Achievement to the Century of Change: The Energy Industries at the Turning Point 
Prof Ian Lowe, Griffith Uni 

Energy Through the 20th Century: The Economic, Business and Social Drivers 
Phil Ruthven, IBISWorld 

ENERGY FOR THE 21ST CENTURY 
Energy Outlook into the New Millennium – Key Trends and Determinants 
Charles Millsteed, Karen Schneider & Vivek Tulpule - ABARE 

Energy and Global Environmental Technology 
Mitsuru Takeshita - NEDO 

Energy for the New Millennium: Energy Policy, End Use Issues 
Bob Alderson - DISR 

Photovoltaics for the New Millennium 
Prof Martin Green & Stuart Wenham - Uni NSW 

ENERGY SUPPLY & RESTRUCTURING THE ENERGY INDUSTRIES 
The Downstream Petroleum Industry – Challenges and Opportunities 
Jim Starkey - AIP 

Gas Pipelines – New Market Opportunities 
Allen Beasley - APIA 

Long Term Supply Issues in the National Electricity Market 
Tim George & Charlie Macauley - NEMMCO 

Regulation for the New Millennium 
Joe Dimasi - ACCC 

SERVICES & RESTRUCTURED ENERGY INDUSTRIES 
The Performance of Victoria’s Privatised Power Stations 
Assoc Prof John Price - Monash Uni 

Utility Power Plant – After Market Service, an OEM Perspective 
Hans Schultz - Siemens 

Forging the Business/IT Power Partnership 
William Ehmcke - META Group 

Performance Contracting in Facility Development: Geelong Hospital Experience 
Jeremy Bowler - Barwon Health 

ENERGY MANAGEMENT 
Benefit Cost Analysis of Demand Side Management Programmes in India 
Prof B Sudhakara  Reddy - Indira Gandhi Inst. for Development Research 

Cascade – The Group Dynamic Boosts Energy Results 
Maryanne Walkley - Energy Efficiency Vic 

A 2020 Vision for NSW Electricity Supply 
Graeme Jessup & Andrew Williamson - SEDA NSW 

Green Energy and the Environmental Millennium 
Jack Taylor – Office of Sustainable Energy (Qld) 

GLOBAL WARMING - CURRENT STATUS 
Progress in Climate Science and Its Role in Greenhouse Policy 
Graeme Pearman - CSIRO Atmospheric Research 
Abstract 
Full paper 

Climate-change Science: Too much ‘Imagination Block’ 
Bob Foster – Bob Foster Consultancy 

Greenhouse – The Challenge for Energy 
Gwen Andrews – Australian Greehouse Office 

Designing a Realistic Climate Change Policy that Includes Developing Countries - 
Prof Warwick McKibbin & Peter Wilcoxen - ANU & Brookings Inst 
Abstract 
Full paper 

RESPONSE TO GLOBAL WARMING  
Carbon Credit Trading: The State of the Emerging Market. 
Aldyen Donnelly – Greenhouse Emission Management Consortium 
conference overheads (Donnelly.ppt 304k) 
Notes from conference overheads 

Green Power – Current Issues, Future Growth 
Iain Buckland – Energy Efficiency Vic 

The Role of Nuclear Energy Early in the New Millennium 
Ian Hore-Lacey – Uranium Information Centre 

Developments in Power Generation from Biomass in Europe 
Chris Hamilton – Lurgi (Aust) 

Australia’s Greenhouse Problems and the Nuclear Solution 
Leslie Kemeny – Int Nuclear Energy Academy 

How to Make a Start on Greenhouse Gas Reduction and Laugh All the Way to the Bank - 
Geoff Rodgers & Ali Javan - GJM Controls 

Integrated Drying and Gasification: Technology for Power Generation from Brown Coal and Biomass -  Terry Johnson & Brian Young, HRL & Envirosafe 
Abstract 
Conference overheads (IDGCC.ppt 915k)
Notes from conference overheads

PLANNING & TECHNOLOGY ASSESSMENTS 
The Use of Scenario Planning in the Electricity Industry 
David Evans, W Soontornrangson, R Fuller & D Stewart – Uni of Melbourne 

Numerical Comparison of the Performance of Parallel and Serpentine Solar Flat Plate Collectors - 
Ruth Mossad & Wai Pang – Uni of Southern Qld 

Hurdles Barriers and Pitfalls - The Energy Paradox Demystified 
Helen Murphy – Uni of RMIT 

FUTURE FOR COAL & ELECTRICITY 
Has Brown Coal a Future for Fuelling Power Generation? 
Malcolm McIntosh – CRC for Clean Power from Lignite 

Black Coal - A Sustainable Fuel? 
John Wright - CSIRO Energy Technology 
Abstract 
Conference overheads 

Energy for the New Millennium – Directions for Electricity Supply and Use 
Harry Schaap - ESAA 
 
 


FROM THE CENTURY OF ACHIEVEMENT TO THE CENTURY OF CHANGE:  THE ENERGY INDUSTRY AT THE TURNING POINT 

Prof Ian Lowe 
Griffith University, Nathan Qld 4111  The amazing achievements of the energy industry in the twentieth century have given today’s humans an unprecedented material quality of life.  Not only is energy literally the driving force of modern society, it is also the key to other shortages and to many environmental problems.  So the availability of large amounts of usable energy is essential for the survival of civilisation.  The success of the energy industry now poses three major problems.  The ready availability of usable energy is taken for granted, so future planning has almost been abandoned.  Given the time-scale for developing new energy systems, we should be very concerned about the failure to plan for the future.  It is difficult to see how the present scale of energy use in the OECD countries could be extended to the whole world, so an equitable future must involve significant changes in energy supply and use.  More fundamentally, fuel use now poses environmental problems that are potentially very serious.  All levels of government are now nominally committed to the principle of sustainable development.  There are no easy answers to the problem of meeting the energy needs of the twenty first century, requiring radical changes in supply technologies and in systems for converting energy into the services we want.     Top 


ENERGY OUTLOOK INTO THE NEW MILLENNIUM: 
KEY TRENDS AND DETERMINANTS 

Charles Millsteed, Karen Schneider and Vivek Tulpulé 
ABARE, GPO Box 1563 Canberra 2601 

International policy responses to the threat of global climate change and the implementation of multilateral trade liberalisation initiatives are two factors that have the potential to influence the level, fuel mix and geographic pattern of world energy demand into the new millennium.  These policy factors add to a range of uncertainties that affects the long term outlook for world energy demand, including economic growth, population growth, technological change, consumer behavior and energy sector reform.  International responses to the greenhouse gas abatement targets established in the Kyoto Protocol are likely to reduce the global demand for fossil fuels, particularly coal.  In the event of entry into force of the protocol this will have important implications for Australia, which relies heavily on coal for domestic energy use and export earnings.  In contrast, the liberalisation of international trade regimes is expected to lead to higher real incomes in most economies and, in the absence of other changes such as accelerated energy efficiency improvements, to increased consumption of energy.  Trade liberalisation is also likely to alter the geographic pattern and fuel mix of world energy trade.  These impacts have implications for Australian exports of energy commodities.  The objective in this paper is to discuss the outlook for world energy demand to the year 2010.  The paper includes a reference case in which the outlook for key energy variables is presented.  This takes account of the key determinants of energy demand on a business as usual basis in the absence of specific new policy initiatives.  The energy sector impacts of climate change response policies and trade liberalisation initiatives are discussed, based on preliminary results from current ABARE analysis.  Australia's prospects in Asia Pacific energy trade are explored.  Top AIE home page 


ENERGY AND GLOBAL ENVIRONMENT TECHNOLOGY 

Mitsuru Takeshita 
NEDO Representative Office in Sydney 
18th Floor, 60 Margaret St, Sydney NSW 2000 

NEDO is the principal semi-governmental organisation for promoting technological development in Japan.  It was established with executive policy powers under the Ministry of International Trade and Industry (MITI) in 1980, immediately after the second oil crisis, and next year celebrates its 20th anniversary.  NEDO is charged with the development and introduction of new energy, such as solar photovoltaic and wind power generation, advanced industrial technologies, and global environment technology.  NEDO’s research and development of these technologies goes substantially beyond that which is conducted by the private sector due to the financial risks involved.  Private companies nevertheless are encouraged to increase their investment in these areas through subsidies from the Ministry of International Trade and Industry.  NEDO’s total budget in 1999 is about 5 billion Australian dollars, among which approximately $1.8 billion has been allocated to R&D into the introduction of new energy and energy conservation measures.  About $1.2 billion is devoted to innovative environmental and other industrial technology projects.  Top 


ENERGY FOR THE NEW MILLENNIUM:  ENERGY POLICY, END USE ISSUES 

R R Alderson 
Head of Division, Energy and Environment 
Department of Industry, Science and Resources 
51 Allara Street, Canberra, ACT 2600 

In the context of the subject for this symposium “Energy for the New Millennium”, I will present some thoughts on energy policy imperatives that are likely to influence end use technologies in the years ahead.  This seems to me to be a useful consideration as, apart from those who directly gain their living from producing energy, energy is simply an input required to meet our productive, mobility, recreational and comfort needs;  a means to an end, not an end in itself. 

Energy supply is essential for industry and commerce and is a fundamentally important requirement for maintaining and enhancing our living standards.  I will look back a little and then look forward, identifying some key issues that are likely to drive energy policy in the years ahead. Top 



 

PHOTOVOLTAICS FOR THE NEW MILLENNIUM 

Martin A. Green and Stuart R. Wenham 
Centre for Photovoltaic Engineering 
University of New South Wales, SYDNEY, N.S.W. 2052   “Photovoltaics”, the direct conversion of sunlight to electricity using solar cells, has the potential to transform the way we think about energy during the first few decades of the new millennium.  By the end of the first decade, under existing government programs, photovoltaics is expected to be on the roofs of over three million urban residences around the world.  The corresponding industrial stimulation is expected to transform the photovoltaic industry from his present “boutique” status to a major energy provider.  The paper describes the technological and policy developments driving this transformation and their implications. Top 



 

THE DOWNSTREAM PETROLEUM INDUSTRY:  CHALLENGES AND OPPORTUNITIES 

J C Starkey 
Executive Director, Australian Institute of Petroleum 

Australia's demand for petroleum products has traditionally been met almost entirely by the Australian refiners, supplying product through a network of distributors and retailers.  This system has ensured security of supply of petroleum products of high quality, to all sectors of the economy. 

The Australian industry has, however, come under increasing pressure in recent years.  Several factors have combined to threaten the ongoing viability of the industry and its ability to continue in its traditional role as the principal supplier of petroleum products in the Australian market and other markets in the region. 

To meet these challenges, the industry must further reduce its costs and become as efficient as possible through further restructuring and rationalising investment in the industry.  This process is, however, currently inhibited by Federal Government regulations and policies.  Changes in the regulatory framework in which the industry operates - and, in particular, repeal of outdated legislation and replacement by supportive Government policies - are a pre-requisite to the achievement of a strong, efficient downstream oil industry.    Top AIE home page 



 

GAS PIPELINES – NEW MARKET OPPORTUNITIES 

Dr Allen Beasley 
Executive Director, Australian Pipeline Industry Association 

This paper will review the opportunities for, and challenges to, gas transmission pipeline development in Australia. 

During the 1990s, Australia’s gas transmission pipeline industry has undergone a radical overhaul.  Recent developments have included: 

· Large scale privatisation of government owned assets, leading to an industry that is primarily private sector owned; 
· Convergence of ownership to a relatively small number of national pipeline owners/operators; 
· Regulatory changes which have led to the unbundling of the gas haulage business from other activities, especially sales, together with third party access arrangements; and 
· Technology advances that have continued to reduce pipeline construction costs. 

Against this background of considerable uncertainty and change, it is remarkable that Australia’s gas transmission pipeline industry has continued to invest strongly in new pipelines which provide major benefits to Australia, including: 

· Improved security of energy supply through interconnected pipelines; 
· Greater opportunities for gas on gas competition in major markets; 
· Delivery of clean, efficient energy to new markets in regional Australia; and 
· An opportunity for energy users to reduce their greenhouse gas emissions through adoption of natural gas in applications such as power generation, minerals processing and manufacturing. 

The capital investment, which has taken place throughout the 1990s, is set to continue provided the policy settings are correct.  However, the industry faces considerable uncertainty in a number of key areas, including:  · Implications of the Federal Government’s decision to move to whole of life depreciation for major capital items such as pipelines;  · Policy ambiguity about the role of natural gas as a “bridging fuel”;  · The ability of market growth forecasts to be achieved;  · Economic regulatory  attitudes and practices that may stifle new investment; and  · Delays in pipeline approval arrangements in a number of States. Top AIE home page 



 

LONG TERM SUPPLY ISSUES IN THE NATIONAL ELECTRICITY MARKET 

T A George and C G Macaulay 
NEMMCO,  461 Bourke Street, Melbourne, Vic 3000 

The restructure of the electricity industry in the jurisdictions of New South Wales, Australian Capital Territory, Queensland, South Australia and Victoria reached an important milestone in December 1998 when the National Electricity Market (NEM) commenced. 

The NEM is a wholesale market set up as a gross pool through which all energy is traded.  A single pool price applies, subject to constraints, and is set by the highest price offer dispatched to meet demand.  The objectives of the NEM are to encourage efficiency through competition.  The generation and retail sectors are competitive while the networks are set up as regulated monopolies. 

The National Electricity Market Management Company (NEMMCO) has been established to operate the physical market and has been given three primary roles to perform: 

i) Operate the NEM 
ii) Develop the NEM (with an emphasis on improving efficiency); and 
iii) Co-ordinate planning in the NEM 

It is in the operation of the market and the coordination of planning that NEMMCO is concerned with the adequacy and development of the supply-side of the market. 

NEMMCO has obligations to ensure supply adequacy in the short to medium term (up to two years) through the information that it provides to the market and the mechanisms for intervention which have been specified in the Code. 

It is intended that supply side (or equivalent demand side) investments should occur in response to market forces and signals which are produced as a result of the market design.  The market is left to determine where or when investment should take place or what fuel or technology should be used.  NEMMCO’s role is essentially limited to the provision of information concerning the adequacy of the supplies and, as a last resort, intervention in the short to medium term to address supply shortfalls. 
NEMMCO has a further role of supplying longer-term information on the supply / demand balance which it achieves through the publication of forecasts in the Statement of Opportunities (SOO).  This paper will discuss these short and long term views, as well as a number of factors which NEMMCO expects may have a significant impact on the supply side in coming years. Top AIE home page 



 

REGULATION FOR THE NEW MILLEMIUM 

Joe Dimasi 
Regulatory Affairs Division, Australian Competition and Consumer Commission 

Policy and Regulatory developments in the New Millenium will need to address the following issues: 

1. THE PROMOTION AND DEVELOPMENT OF GENUINE MARKETS 

ELECTRICITY 
a) Sustainable competition in generation 
b) b) Interconnection: clear and workable rules must be in place to allow the development of a genuine market through interconnection across geographic areas 
c) Network pricing;  how is pricing for the network to be set if it is to encourage the efficient usage of the network and also sensible investment in the network 
d) Will the contestability timetable be followed allow the benefits of competition be passed on to all customers? 

GAS 
a) The reforms mid and downstream need to be matched with upstream reform to ensure that the benefits of competition are passed on to all customers. 
b) The reforms need to remove any barriers to the development of a sustainable market through interconnection that allows inter-basin competition 

2. CONVERGENCE 

We are already seeing companies involved in both the gas and electricity sectors.  This can be expected to continue.  This implies that there has to be some consistency in regulatory approach between gas and electricity. 

3. REGULATORY COORDINATION  As national markets develop in gas and electricity across states boundaries, regulatory coordination must continue to be an important priority. Top AIE home page 



 

THE PERFORMANCE OF VICTORIA'S PRIVATISED POWER STATIONS 

John W H Price 
Mechanical Engineering Department, Monash University. 

The current status of the power generation capacity in the State of Victoria is given in Table 1.  This table also gives the date of sale and the current name of the operating company.  Most of the owners are consortia of various investors, usually including Australian investment houses.  There have been modifications to the equity structures of some of the stations since the original sales, so the "significant owners" are basically the owners dominant in the operation of the station. 

When considering the effect privatisation has had on the performance of the power station, the public is interested in at least four measures of power station performance. These are: 
· The price of electricity; 
· The capacity to supply electricity; 
· Environmental measures; and 
· Safety measures.  This paper considers the first two of these measures.  As will be seen both of these have apparently dramatically improved.  Environmental and safety measures are not the subject of this paper but, in so far as information is available, they appear to be, on average, improving. Top AIE home page 



 

UTILITY POWER PLANT – AFTER MARKET SERVICE, AN OEM PERSPECTIVE, 

H. Schultz 
Siemens Ltd – Power Generation Department 
9 Parkview Street, Milton Queensland 4064 

Maintenance, overhaul practices and procedures adopted by a significant number of power plant utilities have changed markedly in the last years. The reasons for this are competition coupled with the increasing trend of corporatisation and/or privatisation of previously owned government power generation plant. Additional, factors for the change in maintenance and overhaul practices can be attributed to the ageing of plant and increasing pressure for profitability in an open, deregulated market economy environment.  This paper addresses some of the changes within the utility power generation service industry, including Outsourcing, Reverse Engineering and Local Manufacture. The paper further outlines the Siemens Ltd response to meet ongoing customer needs, now-and in the future. Example of changes is the establishment of Alliances and Partnerships with clients, strategic workshops and specialised service companies.  Further, the concept of the dedicated ‘Power Station Business Manager’, is being phased in progressively to provide ‘first-up’, one point user friendly service for the customers for the broad range of Siemens Ltd products and services Top AIE home page 



 

FORGING THE BUSINESS/IT POWER PARTNERSHIP 

William Ehmcke 
META Group Asia Pacific 

The energy utility industry is going through a dramatic globalisation phase. Mergers and acquisitions, led by aggressive US and European energy companies, are creating businesses with operations that span North and South America, 
Europe, and the Asia Pacific region. 

Adding to the organisational complexity, this globalisation is occurring in multiple lines of business, some of which are 
unregulated (eg. production / generation) and some of which are regulated by the countries and local jurisdictions in which the businesses are located (eg. transmission, distribution).   Local business, regulatory, and social environments dictate differing approaches to marketing, management, and operations. Top AIE home page 



 

PERFORMANCE CONTRACTING IN FACILITY DEVELOPMENT 
THE GEELONG HOSPITAL EXPERIENCE 

J R Bowler 
Director of Building and Engineering Services 
Barwon Health,  Ryrie Street, Geelong,Vic 3220 
 

Approximately 40% of the cost of construction of an acute hospital is in the engineering services which are very complex and diverse.  Capital Funding for engineering services infrastructure is difficult to secure as competition from core business activities such as clinical services generally takes precedent.  Careful analysis, however, may identify cost reduction opportunities which may, themselves, substantially fund the development of improved plant and equipment.  The most likely cost savings are in: 

i) Reduced service contract costs.  Often high as they are tied to existing plant which may well have passed its use by date or, in the case of lift contracts, the old type comprehensive contracts are very expensive. 

ii) Reduced maintenance and repair costs.  Old plant often costs excessive amounts to maintain in service and in the case of large central plant, failures can be expensive and unpredictable, destroying budget projections and jeopardising other planned works. 

iii) Reduced energy costs.  Energy generally provides one of the larger funding sources, because boiler, chiller and air conditioning plant, along with lighting, are frequently inefficient and more often than not installed with expediency in mind rather than performance. 

iv) Replacing manned plant with unattended plant  Significant savings may be derived by improvements through capital investment, but it is important to develop strategies to ensure that these are both real and sustainable.  Frequently, investment in plant is not supported by maintenance programs and even if they are, the contracts have few, if any, performance incentives.  In most cases, profit is the best incentive and, if the performance is tied to a capital investment, then it could be expected that the investment would be made to work for you.  Performance contracting is thus a legitimate tool to deliver improvements in infrastructure and service. Top AIE home page 



 

BENEFIT COST ANALYSIS OF DEMAND SIDE MANAGEMENT PROGRAMMES IN INDIA 

B.Sudhakara Reddy 
Indira Gandhi Institute of Development Research 
Goregaon (E), Bombay 400 065, India. 

Energy usage efficiency is a topic that has been discussed for a long time.  However, a framework for the quantification of targets in terms of costs and energy and power savings as well as the distribution of benefits and costs among stakeholders, viz., consumers, utility and society is lacking.  Also, sound and rational planning strategies demand the inclusion of energy efficiency and demand side management (DSM) in the planning process.  In order to quantify the potential for DSM and to assess the benefits and costs for various DSM options, a study is carried out for the high tension (HT) industries in India which accounts for 35% of the total electricity consumption.  Twelve different DSM options have been considered and electricity and power savings are estimated for a fifteen-year period (1996-2010 AD).  This paper provides a methodological framework (which at present is lacking in Indian context) for individual DSM options and estimates energy and peak demand savings.  The cost benefits have been assessed for different DSM programmes  from the following perspectives, viz., Utility, Customer and Total Resource.  This is an attempt to evolve a rational basis for deciding how each stakeholder can benefit from each option so that costs and benefits can be shared among various players. Top AIE home page 



 

CASCADE – THE GROUP DYNAMIC BOOSTS ENERGY RESULTS 

Maryanne Walkley 
Energy Efficiency Victoria 
115 Spring St Melbourne 3000 

The Energy Smart Cascade programs were introduced by Energy Efficiency Victoria to reduce Victoria’s greenhouse gas emissions through energy management in business.  The programs draw together the roles of industry and government in addressing climate change and in fulfilling our national and international obligations.  Energy Smart Cascade programs are designed to cascade energy efficiency concepts through a host such as a large company or industry association to its suppliers or members.  The companies participating in the Energy Smart Cascade program for 1999 are Ford and a group of component manufacturers, Australian Industry Group and a group of food manufacturers, La Trobe Valley Generators Group and the five Victorian generators, and NIETL/NORTH Link and a group of companies from the Preston area of Melbourne. Top AIE home page 



 

A 2020 VISION FOR NSW ELECTRICITY SUPPLY 

Graeme Jessup and Andrew Williamson 
Sustainable Energy Development Authority (SEDA) 
Level 6, 45 Clarence St  Sydney,  NSW,  Australia 
 

The Sustainable Energy Development Authority (SEDA) is tasked with reducing NSW greenhouse gas emissions by investing in the commercialisation and increased use of sustainable energy technologies.  But how realistic is the concept of sustainable energy in NSW?   Given that coal-fired power stations currently supply over 90% of NSW power, and considering our growing energy demands, plus the high costs of renewable energy, is it feasible to shift away from coal to less greenhouse-intensive sources?  In order to produce effective and useful plans for how NSW could achieve a sustainable future, it is necessary to evaluate what is realistically achievable.  Based on available data for potential renewable energy resources, this paper shows one hypothetical scenario of what the mix of NSW energy generation sources could be in the year 2020.  The outcome of this exercise is an optimistic but feasible electricity supply mix, which is summarised in Fig. 1.  This paper outlines the assumptions used and goes on to discuss some of the implications of the scenario. Top AIE home page 



 

 GREEN ENERGY AND ENVIRONMENTAL MILLENNIUM 

Jack Taylor 
Office of Sustainable Energy 
Department of Mines and Energy, Qld 

It is my intention in this paper to cover four areas, namely:  1. Renewables;  2. What’s Special About Queensland  3. Lessons We Have Learnt About Embedded Generators  4. Where Global Trends are Going in This Area of Green Energy. Top AIE home page 


PROGRESS IN CLIMATE SCIENCE AND ITS ROLE IN GREENHOUSE POLICY 

G I Pearman 
Chief, CSIRO Atmospheric Research 
PBM #1, Aspendale, Vic, 3195 

In 1999, it is difficult to comprehend just how much change has been associated with the issue of the so-called “enhanced greenhouse effect” since the scientific community first suggested that it is an issue for all of the community to consider (Villach, 1985).  On the scientific side, a mechanism has been established by which periodic assessments of the state of the science are made by a panel called the Intergovernmental Panel on Climate Change (IPCC) comprising several thousand scientists around the world.  This Panel has already delivered two assessments (IPCC, 1990, 1996). 

Scientists are busily preparing the Third Assessment Report of the IPCC, for release early in 2000 (http.www.unep.ch/ipcc/).  In this presentation I will call heavily on the IPCC Second Assessment Report.  However, this is a field of rapid change and I will also refer to recent outcomes of CSIRO research.  Other overall assessments of the state of the science can be seen at www.agu.org/eos_elec/99148e.html (Ledley et al., 1999); at the Environment Canada web site, http://www1.tor.ec.gc.ca/apac/climate/co2-climate/CO2_english_99-01.pdf or at my Divisional web site, www.dar.csiro.au

The other side of this rapid development has to do with policy.  In the short few years since “Villach”, we have seen the establishment of an international Framework Convention on Climate Change, and the Kyoto Protocol.  The Framework Convention (see www.unfccc.de/fccc/conv/conv) has the express purpose of bringing about the “stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”.  The Protocol provides a first attempt at a set of agreements amongst developed countries to reduce global emissions of greenhouse gases (www.unfccc.de/fccc/docs/cop3/protocol). 

The final, and most recent development, relates to the response to the Protocol.  In its broadest sense, this involves real attempts to minimise carbon emissions, recognition that carbon emissions may develop dollar value, and that we are seeing a process whereby the environmental costs of carbon emissions may become effectively internalised in the costs of our energy resources.  In this paper, as a climate scientist, I will speak mostly about the underpinning science of “greenhouse”, but will attempt to give a perspective of how this work is influenced by, or influences, these other developments. Top AIE home page 



 

CLIMATE-CHANGE SCIENCE: TOO MUCH IMAGINATION BLOCK 

Bob Foster 
Bob Foster Consultancy 
30A Vautier St Elwood, Vic 3184 

This document seeks to perform two tasks: 

1) Review the geoscience record of natural climate variability, thus showing that the climate system is dynamic - not uniformitarian or gradualist - and that ice- and ocean-related extreme events have played a key role in past climate change. 

2) Analyse the narrow atmospheric-science underpinnings of the Kyoto Protocol, thus showing that measured warming over the past century and more of the instrumented record was wrongly attributed in Kyoto to changes in atmospheric composition 

These are not just academic issues. 

If climate-change is indeed driven by ice, oceans and atmosphere acting in concert, and not by changes in atmospheric composition alone, the validity of the numerical models used to predict future warming would be seriously compromised.  These models cannot recognise the likelihood of future extreme events. 

Furthermore, and irrespective of what may happen in the future, if observed warming to date is indeed largely unrelated to human-caused changes in atmospheric composition, the purported validation by hindcasting of the models used to make the predictions of global warming is spurious.  It is predictions by these computer models which were the basis for the decisions taken at Kyoto 

If the assertions made in this document are correct, it would follow that: 

1) The economic hardship which application in full of the Kyoto Protocol will engender is based on unsound science - because of ‘imagination block’ in the supposed reconciliation of over-predicting models with an under-warming World.  2) Even more important, the Kyoto Protocol will pose an unnecessary threat to the environment - because the more zeal and the more money put into limiting greenhouse gas (GHG) emissions, the less remaining for other more-pressing environmental imperatives.    Top AIE home page 



 

GREENHOUSE – THE CHALLENGE FOR ENERGY 

Gwen Andrews 
Chief Executive, Australian Greenhouse Office 
www.greenhouse.gov.au 
 

I would like to thank the Australian Institute of Energy for the opportunity to speak here today.  I will outline the context of the Commonwealth’s policy on greenhouse issues and the challenges that face Australia in containing its emissions.  In particular, I would like to focus on two energy measures: 

· Additional 2% renewables; and 

· Efficiency standards for power generation. 

These two energy measures form part of a number of integrated, complementary measures currently being implemented by the Australian Greenhouse Office (AGO) as part of the National Greenhouse Strategy. 

In addition I would like to touch on the subject of energy market reform which, whilst not a direct responsibility of the AGO, is an area in which we have a keen interest.  Less greenhouse intense means of energy generation are vitally important for Australia to meet its international commitments.  Longer term planning for energy generation, transmission and distribution is paramount to lower the greenhouse intensity of energy supply in Australia.  This will require the commitment of all governments and sectors of the Australian economy.    Top AIE home page 



 

DESIGNING A REALISTIC CLIMATE CHANGE POLICY THAT INCLUDES DEVELOPING COUNTRIES 

Warwick J. McKibbina,b and Peter J. Wilcoxenb,c 
a - Australian National University, Canberra 
b - The Brookings Institution, Washimgton DC 
c - University of Texas at Austin  In earlier papers we have argued that the Kyoto Protocol is not sustainable as a global climate change policy and have proposed an alternative policy regime based on a coordinated but decentralized system of national permit trading systems with a fixed internationally negotiated price for permits.  In this paper we extend this earlier  proposal to include an explicit mechanism for participation by  developing countries.  The idea is to give incentives for carbon abatement in developing countries through price signals without imposing short or medium term costs in these economies.  This new system is based on the creation of two types of assets in each participating country – emission endowments and emission permits.  We argue that this new system is an effective and realistic way to move forward on a sustainable regime for climate change policy. Top AIE home page 



 

GREEN POWER – CURRENT ISSUES, FUTURE GROWTH 

Iain Buckland 
Energy Efficiency Victoria 
215 Spring Street, Melbourne, Vic., 3000 

Electricity in Australia is primarily generated by black and brown coal fired power stations.  Only about 10% of the total electricity generation is currently sourced from renewable energy, the largest portion of which is hydro-electricity (ESAA, 1998).  However, there is a growing awareness and interest in renewable energy, due largely to a range of State and Commonwealth Government energy policies and programs intended as a response to international measures to reduce greenhouse gas emissions.  From the 1996 National Greenhouse Gas Inventory, electricity generation accounted for 35% of net emissions and grew by 14% from 1990 to 1996 (AGO,1999).  This provides a powerful incentive to increase the use of renewable energy.  This paper is concerned particularly with Green Power, a program which enables electricity retailers to offer customers the choice of purchasing all, or a proportion of their electricity consumption from renewable energy sources.  This has been received by customers with enthusiasm, largely due to being backed by a rigorous accreditation program.  The result has been the development of a number of significant renewable energy projects around Australia, with many more currently being planned. Top AIE home page 



 

THE ROLE OF NUCLEAR ENERGY EARLY IN THE NEW MILLENIUM 

Ian Hore-Lacy 
Uranium Information Centre 
GPO Box 1649N, Melbourne 3001 
http://www.uic.com.au 

Out of the crucible of horrific weapons has come a technology of enormous benefit to humanity, through medicine, industrial applications, marine propulsion and the production of electricity, which is the focus of this paper. 

Over the last 40 years nuclear energy has become a major source of the world’s electricity , now providing over 16 percent of the total.  It has the potential to contribute much more, especially if greenhouse concerns lead to a change in the relative economic advantage of nuclear electricity or its ethical desirability. 

Nevertheless, there are those who wish somehow to put the genie back in the bottle and to return to some pre-nuclear innocence.  Such notions seem to achieve undue prominence in Australia because the actual utilisation of nuclear power is remote. 

We are virtually the only developed country where, when you switch on the light, you are not getting some nuclear electricity to help lighten your way. 

Of course there is enormous appeal in the proposition that we should develop "renewable" technologies to harness better the sun and the wind.  I fully support such developments, and hope that we can do rather better than the official 2% target.  However, we need also to recognise that such sources are intrinsically unsuited to providing base-load electricity, which requires continuous and reliable supply on a gigawatt-day (rather than kilowatt-hour) scale. 

Much electricity demand is for reliable, continuous supply which simply cannot be met from renewables such as wind and solar photovoltaic sources on any significant scale.  For instance, Victoria requires more than 4 million kilowatts (GWe) of continuous base-load supply, and the further 2 GWe of fluctuating demand does not coincide with daylight hours or strong winds. 

Uranium's only significant non-weapons use is to power nuclear reactors.  There are over 1100 nuclear reactors operating today around the world, with only one of these in Australia: 
· about 310 research reactors, producing isotopes for medicine and industry 
· over 400 reactors powering ships, mostly submarines 
· 440 larger reactors generating electricity. 

In particular, uranium is used for base-load electricity.  Here it competes with coal, and to some extent, natural gas, though particular ethical issues are raised in squandering such a valuable resource as natural gas in that way.  In most countries electricity demand is increasing much faster than overall energy demand.  This is partly because in many applications other than heating, using electricity increases efficiency and so means using less energy overall. 

Public debate about the virtues and threats of nuclear energy is about options for producing electricity.  None of the options are without some risk or side effects.  All Australian uranium is sold for electricity production, none goes into weapons, and two layers of international safeguards arrangements ensure this. Top AIE home page 



 

DEVELOPMENTS IN POWER GENERATION FROM BIOMASS IN EUROPE 

C J Hamilton 
Lurgi (Australia) Pty Ltd 
230 Albert Road, South Melbourne, Vic  3205  With a view to addressing its energy requirements for the new millennium, Australia can learn a great deal from the recent developments in the utilisation of biomass that have taken place in Europe over the last decade.  More particularly, the focus should be directed to the ideas and solutions, which have been developed for the treatment and disposal of waste materials. The aim of this paper is to provide a window into a number of projects where Lurgi has recently been involved in the generation of electric power from biomass. The author has just returned to Australia after a 6 year secondment with Lurgi in Germany and the United Kingdom. Top AIE home page 



 

AUSTRALIA’S GREENHOUSE PROBLEMS AND THE NUCLEAR SOLUTION 

Leslie G Kemeny 
Australian Member – International Nuclear Energy Academy 
Director – L & M Kemeny and Associates – Consulting Nuclear Engineers and Physicists 
Visiting Academic Research Fellow 
 

The Australian Government must act soon to draft a policy in regard to the peaceful use of nuclear energy in the domestic area.  This should reflect the historical evidence of the highly successful use of nuclear energy in over thirty overseas countries during the past four decades.  The policy vacuum created by a long tradition of eco-political activism, media sensationalism and poor education should not be allowed to prevail into the new millennium in which this country will face new domestic and international energy challenges. 

No country on earth has more to gain by full participation in the international uranium fuel cycle industry and the development of a domestic nuclear electricity generating capacity than the Commonwealth of Australia.  The environmental, technical, fiscal and societal benefits to this nation would be considerable.  Such a move would also validate Australia’s oft declared interest in global nuclear disarmament and give the nation greater credibility in the international regulation of the “tail-end” of both the hydrocarbon and the nuclear fuel cycles. 

In terms of relative risk per unit of energy generated, the uranium fuel cycle is far safer, mostly cheaper and environmentally preferable to its base load competitor.  Its waste products are a small volume, local repository storable, potentially commercially profitable industrial venture.  By comparison the “tail-end” of the hydrocarbon fuel cycle consists of greenhouse gases and carcinogenic pollutants in volumes and concentrations which are essentially uncontainable and uncontrollable.  Poised on the edge of the new millennium, Australia – already the world’s top coal exporting country is about to become a major uranium exporter to an energy hungry planet.  It is imperative that the Commonwealth Government should recognise both the domestic and global implications of this challenging role for the nation.  A national energy policy should underline the complimentary role of these two base load fuels and promote the role of nuclear fuel in both the domestic and global context. Top AIE home page 



 

HOW TO MAKE A START ON GREEN HOUSE GAS REDUCTION AND LAUGH ALL THE WAY TO THE BANK 

Geoff Rogers & Ali Javan 
GJM Controls, 150 Albert Rd South Melbourne, Vic 3205 

Green house gas emission reduction is mostly directed to CO2, a byproduct of combustion of fossil fuels.  While Australia is in a disadvantageous position relative to many countries because of heavy reliance on coal, compared to say natural gas, wind nuclear or hydro sources, Australian technology is helping the worlds fossil fuel fired power stations and many industrial boilers minimise total CO2 emissions by increasing efficiency of combustion, by excess air minimisation. 

CSIRO developed the world’s leading Zirconia sensor technology for flue gas oxygen measurement.  An Australian company commercialised this technology and now dominates the Australian power station market with the technology because it is for the first time reliable enough for closed-loop automatic air trimming control especially on gas fired plant. 

This paper will explain the relationships between fossil fuel stoichiometry, excess air and CO2 emissions and zirconia sensor flue gas oxygen measurement and control.  By carefully controlling excess air, reductions in CO2 emissions of 3-5% are readily achievable along with reductions in fuel costs of the same order.  Side benefits can include reduction in NOx and increased safety of the operation.  This is expected to be a low cost and increasingly popular measure for industrial enterprises to attack the greenhouse problem with an easy win-win result, as compared to many other greenhouse emission reduction strategies available. 

The range of applications occurring in the industry is discussed, along with the special requirements of the hydrocarbon processing industry for location of equipment in hazardous areas, with potentially flammable atmospheres.  The non-financial benefit of reductions in the levels of the emissions of Oxides of Nitrogen, the controversial greenhouse gas Carbon Dioxide, hazardous Carbon Monoxide and Sulphur Oxides is also discussed. Top AIE home page 



 

INTEGRATED DRYING AND GASIFICATION: TECHNOLOGY FOR POWER GENERATION FROM BROWN COAL AND BIOMASS 
 

Terry R Johnsona and Brian C Youngb 
a - HRL Technology Pty Ltd, Mulgrave, Vic 3170, and 
b - Envirosafe, Balwyn, Vic 3103, byoung@envirosafe.com.au 

Renewable energy has received a substantial boost in prominence in Australia since the issuing of: 

1) the Prime Minister’s statement in November 1997 on energy and greenhouse gas emissions; and 
2) the Kyoto Protocol in December 1997. 

The fact that 2% of Australia’s electricity generation needs to be derived from new renewable energy sources by the year 2010, limits the fuel/energy options in the short term, simply from the sheer size of the undertaking, namely some 9000 GWh of electricity is required from new renewables alone.  Realistically, this target can only be achieved by using biomass as the major fuel/energy source. 

The use of biomass for power generation could be done by direct combustion or co-firing in existing power plants.  However, this involves some risk because of high alkali levels in the ash of some biomass materials.  Gasification is an alternative approach, which overcomes many of the problems of direct combustion, because the fuel gas can be cleaned before being used either in a steam boiler or in a gas turbine combined-cycle plant. 

HRL Limited is developing a low-cost high-efficiency power generation technology for brown coal that closely integrates the drying and gasification processes.  This technology, known as Integrated Drying Gasification Combined Cycle (IDGCC), uses the hot fuel gas produced in the gasifier to dry the incoming coal under pressure in a direct contact entrained flow dryer.  This cools the gas, reducing the requirement for costly heat exchangers.  The gas is burned in a gas turbine combined cycle to produce power.  Integrated Drying and Gasification (IDG) is a part of the technology that is ideally suited to other high moisture fuels such as biomass, where the fuel must be dried before it can be gasified effectively.  IDG includes an air-blown pressurised fluidised bed gasifier coupled with an entrained flow dryer that uses the heat in the fuel gas to dry the incoming fuel.  Evaluations of a range of biomass types indicate that fuel gas of adequate quality can be produced from these materials. Top AIE home page 



 

THE USE OF SCENARIO PLANNING IN THE ELECTRICITY INDUSTRY 

David Evans,1 Wirachai Soontornrangson,2 Robert Fuller2 and Don Stewart2 
Faculty of Architecture, Building and Planning,1 Faculty of Engineering2 
The University of Melbourne, Victoria 3010 

In the early stages of the development of an industrial economy the demand for electricity is often increasing at rates of 10–15% per year.  Such high growth rates are difficult to manage, as they require a doubling of installed generating capacity every few years.  Even a growth rate of 7% per year, which is typical of an economy in its middle stages of development, requires doubling of capacity every ten years. 

This creates problems.  No matter what the maximum demand is in five or ten years time, planners must provide sufficient capacity to meet it.  But unexpected downturns in the economy can then result in equipment lying idle with no return from the capital invested.  This problem can be minimized by curtailing development of new plant when it becomes obvious that demand is not going to meet expectations.  However, some types of power station, for example base-load coal or nuclear stations, may have lead times of up to ten years between the decision to proceed and the supply of electricity into the grid.  This commits the supplier to the development long before it is obvious that it will not be required.  The result is often overcapacity and inflexibility from the installation of the wrong types of generating plant. 

The problem of planning for an uncertain future is not unique to the generation of electricity: it is faced by any business that has to make investment decisions today to provide for future production tomorrow.  One of the ways of dealing with this problem is to develop business plans using scenario planning.  There is now an extensive literature dealing with this technique (see, for example, the books by Amara and Lipinski (1983) and Georgantzas and Acar (1995), and the useful review by Schnaars (1990)).  In this paper we investigate the application of scenario planning to the electricity industry, using Thailand as an example. Top AIE home page 



 

NUMERICAL COMPARISON OF THE PERFORMANCE OF A PARALLEL AND A SERPENTINE SOLAR FLAT PLATE COLLECTORS 

Ruth Riad Mossad, Wai Keung Pang 
Faculty of Engineering and Surveying, 
USQ, Toowoomba, QLD 4350, Australia 
e-mail: mossad@usq.edu.au 

The finite difference method is used to compare the performance of two types of solar water heaters, namely the parallel and the serpentine flat plate collectors.  The comparison aims at increasing the understanding of the two types and how they may differ and helping the designer with a basis for the choice of systems for a particular application.  Performance prediction has been made based on a steady and two-dimensional analysis of each type for a variety of cases.  Parameters studied were plate width to tube diameter ratio, solar intensity, mass flow rate, initial fluid temperature, and mass flow rate to plate area ratio.  Also, the effect of Reynolds Number of the fluid being circulated on the performance of the collectors is investigated.  The results showed that both types performed in most cases in a similar fashion.  At a width between tubes to tube diameter ratio of 3, both types showed an optimum performance.  The results showed, however, that for medium to high flow rates and low fluid inlet temperatures, the serpentine water heater performed slightly better than a parallel water heater. Top AIE home page 



 

HURDLES, BARRIERS AND PITFALLS: THE ENERGY PARADOX DEMYSTIFIED. 

Helen Murphy 
Department of Mechanical and Manufacturing Engineering 
RMIT University,  GPO Box 2476V  Melbourne. 3000 

History has shown that energy efficiency has been a fragile business - treated as a generic benefit or common good and quickly abandoned when conditions were not right.  The term “energy paradox” or “efficiency gap” was subsequently coined in the mid 1980s to reflect the lack of concerted effort by industry to adopt seemingly rational economic strategies to improve energy efficiency. 

Early in 1998, Energy Efficiency Victoria (EEV), sought to develop partnerships with industry bodies and customers and suppliers, such that energy efficiency savings could be “cascaded” throughout a multiplicity of companies and also assist those companies that may not normally have had access to internal energy/engineering support. 

This paper will present the preliminary findings of a phenomenographic review of such a corporate partnership program.  Interviews were conducted which specifically attempted to identify the perceptions people held regarding energy related issues and whether an outward lack of attention to energy related issues within the company could be traced back to the underlying perceptions held by key decision makers.  It is the intention that further comparative studies of energy programs will build system-engineering models of organisational behaviour; the basis of which will be useful for government authorities and any organisation seeking to implement energy management programmes. Top AIE home page 



 

HAS BROWN COAL A FUTURE FOR FUELLING POWER GENERATION? 

Malcolm McIntosh 
Manager, Technology Development 
CRC for Clean Power from Lignite 

The overwhelming majority of the electrical power generated in Victoria is fuelled by brown coal.  Allowing for maximum import through the Snowy link and a reducing export to South Australia, it is expected that new generation will be required in Victoria by 2002/03 (NEMMCO, June 1999).   The initial demand is likely to be met by gas turbines in open or cogeneration cycle fuelled with natural gas. 

To meet the State’s future demand requirements there are a range of power generation, transmission interconnection, and demand side options to be considered.  The focus of this paper is on power generation options, particularly from the mix fuelled with natural gas, renewable resources and brown coal. 

Greenhouse Gas (GHG) issues will influence these options.  Already the Prime Minister has mandated that by 2010, 2% more power should be generated from renewable sources.  This initiative is expected to accelerate the development of renewable technologies to facilitate these becoming commercially competitive. 

Current projections for future generation tend to consider only the continuation of generation from current brown coal plant.  The projections tend not to recognise the significant advantages that could be achieved from the commercialisation of new coal technologies currently under development and demonstration.  This paper considers future demand and the extent and costs of power generation from the various alternative primary energy resources.  It argues the case that power generation from brown coal, particularly when used in high efficiency power generation plant, should remain a dominant part of the fuel mix in Victoria. Top AIE home page 



 

BLACK COAL – A SUSTAINABLE FUEL? 

J K Wright 
CSIRO Energy Technology 
PO Box 136 North Ryde, NSW 1670 
  Coal is under siege.  Despite the facts that coal is currently essential to the maintenance of high living standards and there is no present cost-effective substitute for this energy source, it has a poor local and international image.  The continued use of coal is increasingly being called into question because of its perceived environmental consequences of its production and use and the social desire for change towards less greenhouse gas (GHG) intensive fuel sources.  Coal has a major challenge to show how continued use of this energy resource can fit into a broad sustainability context. Top AIE home page 



 

ENERGY FOR THE NEW MILLENNIUM – DIRECTIONS FOR ELECTRICITY SUPPLY AND USE 

Harry Schaap 
Assistant Director, ESAA Ltd. 
GPO Box 1823Q, Melbourne, Australia, 3001 

Electricity is the most valued energy source in the 20th century due to its instant availability and wide range of applications.  Electricity will be the premium energy source in the new millennium because of the dominance of microprocessor applications and the ability to deliver precisely the right quantity and quality of non-polluting energy at the point of end-use. 

Both the supply and use of electricity will expand greatly in the coming decades as supply sources multiply and the use of fossil fuels (and non-sustainable bio-fuels) continues to decline and the world’s current 2.5 billion people without electricity gain access to cheap, mostly renewables-based, supply. 

Over the next 30 years, the supply side will be shaped by a decreasing share of nuclear based electricity, significant improvements in the carbon intensity of fossil fuel use and a rapidly growing share of mostly small embedded renewable energy systems.  The share of existing hydro is likely to decline world-wide due to resource and environmental pressures. 

Global electricity growth is projected to continue at around 3% per annum with very much larger growth over the next 10-15 years.  Overtime, the growth rate will reduce as the ability to use electricity more efficiently and more effectively improves. For instance, projections by the International Energy Agency for the next 25 years indicate that electricity use for lighting (per lumen output) will reduce by 50% with similar improvements in the combined use of motors and drives and slightly smaller improvements in electronic applications, and in heating, ventilation and air-conditioning.  The presentation focusses on three key topics:  · Electricity supply in Australia and its current and future economic value  · Electricity supply and greenhouse issues management  · Role and opportunities for renewables in electricity supply.  Top   



 

 

 

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