Coal-fired power stations and nuclear power stations each have about 40 hectares of footprint, with a very narrow target transmission lines straight to the cities. In contrast, solar and wind installations are scattered and located away from the main cities, taking up enormous amounts of space. Their energy density is very low, requiring a vast amount of land to produce the same power, and they aren’t on consistently. This increases transmission costs and the amount of land that regions must devote to solar, wind, and now batteries, causing significant angst.
Around the world, every country that has increased the proportion of solar and wind has also increased the cost of electricity for consumers and destroyed their manufacturing base. For example, look at Germany.
A surface coalmine must pay a bond for every hectare uncovered each year, and if it is rehabilitated properly to a superior standard than it was originally, they get their money back. However, there is no such bond for solar and wind companies to set aside funds for decommissioning their complexes at the end of their life. This needs to change!
Transcript
Senator ROBERTS: Thank you for appearing again. Your predecessor said, ‘Australia’s random renewable energy push needs to be overhauled and a nationwide stocktake is required to determine what should be built and where it should go.’ Are you committed to that overall overhaul?
Mr Sheldon: That is an observation or recommendation made by Mr Dyer, and I think that’s been built into the review that Mr Duggan has just been talking about. So all those action plans and so on are designed to
ensure—
Senator ROBERTS: When’s that coming out? I’m sorry, I missed it.
Mr Duggan: The action plan has been agreed by the Energy and Climate Change Ministerial Council, so that’s now a public document. So we’re in the process now of implementing. The full response to the review was
published on 19 July.
Senator ROBERTS: Thank you. So that’s been included in their recommendations?
Mr Duggan: Yes, that’s right.
Senator ROBERTS: Mr Dyer also said, ‘The sort of granular planning required for a once in a generation transformation to secure the nation’s energy supply still had not happened.’ Is that now in the report as well—
granular planning?
Mr Duggan: Yes, this was a recommendation to governments. As you would know, a lot of the detail, the specific planning around land use and specific locations of related transmission, sits with the state governments
and involves a very big input from the local governments. So a lot of the argumentation around that recommendation was to point to some of the best practice that already exists and to encourage that to be taken up
by the other states and territories.
Senator ROBERTS: There’s a lot of pain in the regions now, because they’re bearing the brunt of solar and wind disturbances.
Mr Duggan: What the report highlighted was that, certainly where best practice is not happening, there was an opportunity to improve the way projects are being delivered to the betterment of communities. That’s
absolutely correct.
Senator ROBERTS: It seems like it’s hell for leather, just do whatever you want. And there’s a lot of cash flying around, which is inducing councils to bypass some of their own ordinances, as we understand it.
Senator Ayres: Senator Roberts, the government inherited the last government’s framework and commissioned Mr Dyer to do this report because it’s in the interests of rural and regional communities and of an
effective rollout of generation and transmission capability that we improve the governance and consultation processes and all of the things that are included in Mr Dyer’s report. That’s what’s motivated the government to commission this report. On those nine recommendations, I think Mr Duggan said three of them are directed towards the Commonwealth, because there are multiple participants in this process, but they have, essentially, all been adopted. It’s our job now to operationalise that effectively in a way that addresses, I think, many of the issues that you raise.
Senator ROBERTS: Thank you for that, Minister. Are you aware that a coal-fired power station and a nuclear power station have about 40 hectares of footprint, and that’s it, and a very narrow target transmission
corridor straight to the main users, which are the cities and the provincial cities? Solar and wind are scattered and away from the main cities and they take up enormous room. Their energy density is very low, which means that you need an enormous amount of land to produce the same power. And even then you can’t produce it regularly. So that increases transmission costs, and the amount of land the regions are devoting to solar, wind and transmission, and also now to batteries. It’s causing a lot of angst. Are you aware of that?
Senator Ayres: I’m certainly aware, on one hand, that, with the processes for approval and consultation with these projects, we were operating with the last government’s processes, and we are working to improve those. I’m also aware that you’re trying to make a broader point, I guess, about the merit or otherwise of the approach that is being taken by the government and the states and Commonwealth in terms of building an energy system for the future. I appreciate that you’re not one of the coalition MPs here, but I think it’s hard to make an argument about community consultation on one hand, and then do a press release that says: ‘We’re going to turn up with seven nuclear reactors in your neighbourhood, whether you like it or not. We’re not going to tell you how much they cost, or how many of them we’re going to build—but, Muswellbrook, here you go, whether you like it or not, a nuclear reactor’—
Senator ROBERTS: I agree with you. A coal-fired power station would be fine—
Senator Ayres: That will be very expensive. What we know, and I think the evidence that you’ve heard today shows—and I understand you don’t agree with it; I think you’ve demonstrated over time that you are impervious to the facts and evidence that are provided by the agencies—
Senator ROBERTS: I do the contrary, Minister. I love evidence.
Senator Ayres: That’s your right, I understand that. But the shift to the cheapest form of energy is what the government is interested in here. Claims are made—some of them very wild claims, and some of them
somewhere between misinformation and disinformation—about the scale of land that is required for these projects. I understand that people make those claims and some people retweet them and repost them—pretty
irresponsible in my view. But we have commissioned the Dyer report for a reason; that is, to improve the processes. The minister believes, and the government believes, that adopting those, together with the appointment of Mr Mahar and other steps that the government is undertaking, will improve the effectiveness of the consultation process as we get on with one of the most important nation building things that government can do, and that is to deliver the lowest cost, most reliable energy system as we upgrade our energy system so that we can have manufacturing jobs and low cost, reliable, renewable energy and storage for households and business into the future. It’s a decades-long pathway and we’re determined to do it in the most efficient way possible for the Australian people.
Senator ROBERTS: There are two things I would remind you of, Minister. One is that the energy density drives the cost, and physics does not change the very low energy density of solar and wind, whereas coal and
especially nuclear are very high energy density. The second thing is that, everywhere around the world, every country that has increased the proportion of solar wind, has increased the cost of electricity for consumers and destroyed their manufacturing base. Have a look at Germany. Something that Mr Dyer was very passionate about was rehabilitation bonds, so that these wind and solar companies have put money away for decommissioning the complexes at the end of life. A surface coalmine has to pay a bond for every hectare uncovered each year, and then, at the end of the life of the mine, if it’s rehabilitated properly, to a superior standard than it was originally, they get their money back. There is no bond for solar and wind. What work have you done on putting reforms to government that would ensure there is money put away to clean up the environment, not just leave a toxic wasteland? Specifically, what have you done with the government?
Mr Sheldon: Can I just clarify that question? Is it: what work has the AEIC done to raise that issue with government?
Senator ROBERTS: Yes.
Mr Sheldon: I think Mr Dyer raised that. It was in his annual report in 2022 that he raised this issue about performance bonds in relation to wind farms in particular.
Senator ROBERTS: And what work has been done in following up?
Mr Sheldon: It’s certainly one of those issues that does get raised with us. It’s not in the top 10 or so issues that are raised with us in the complaints that we receive. We’re like a small ombudsman. We receive complaints. It’s an issue that does get raised. During the time that I’ve been in the role, from 2 April this year, it has been raised a few times, but it’s certainly not the top issue. In terms of what is happening, I think since 2022, when Mr Dyer raised the issue, what I’ve observed in the time that I’ve been in the role is that, in different jurisdictions, there’s certainly work done to increase transparency. One of our roles, I guess, in the AEIC is to promote more transparency around these projects.
Senator ROBERTS: What, specifically, have you done?
Mr Sheldon: It’s not our role to implement policy. We’ve identified issues and we certainly monitor them. New South Wales, for example, has recently worked on its renewable energy plan, which includes standard
clauses and so on around the landholders in relation to this sort of issue. We’re monitoring that, but we don’t have responsibility for implementing it, as a complaint handling body. If we identify good examples, we’ll identify them as part of our role.
Senator ROBERTS: So what are you doing, specifically, to make sure that the bonds come into place?
Mr Sheldon: We don’t have a role to implement putting that in place. It’s certainly something we can raise as an issue. We have a range of mechanisms to do that. One of them is the annual report, which, obviously, comes out every year, on a calendar year basis. And part of what’s always been appended to that annual report is a series of observations that have really been built on the observations of the commissioner over many years—which is where the observation was made in 2022. That’s a place where we can raise that with officials that do have policy responsibility for these sorts of matters. That’s generally how we do it. We also have a website where we would raise things. We have reporting obligations to the minister. So, if we identify an issue, we obviously include that in our observations or reports.
CHAIR: Senator Roberts, can I ask if you have much more to go? We’re running terribly behind.
Senator ROBERTS: I just want to make a comment to the minister. Minister, this is a comment, but there’s no reflection on the people at the table with you right now, because they’re interim—well, you’re not in interim,
but Mr Dyer was a thorough professional—
Senator Ayres: We’re all interim in one sense or another, Senator Roberts.
Senator ROBERTS: Mr Dyer was a thorough professional, who did his job extremely well. We happily endorsed him in Senate estimates. He was effectively an ombudsman, and a very good one.
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