Inquiry into Feed-in Tariff Arrangements and Barriers to Distributed Generation Submission number: DRFT-187 Name of participant: Andrew Lang Date received: 18 June 2012 Number of Earlier Submissions: 0 Number of Pages: 2 Comments: If you are experiencing difficulty accessing this submission please email feedintariff@vcec.vic.gov.au or phone on 03 9092 5800 Comment on Draft Inquiry into distributed generation Andrew Lang World Bioenergy Association, vice president board & member for AustralasiaOceania Convenor- The Wood Energy Group Member - Central Highlands Agribusiness Forum Summary The structure and content of the report is useful, and the data has to be assumed to be accurate, but there are two major areas of concern that should be addressed. Firstly, that constantly throughout the report there is confusion in use of the terms ‘energy’ and ‘electricity’. ‘Energy’ includes all forms of energy, and particularly heat energy, transport fuels (chemical energy) and electrical energy. However in this report it is constantly used as being synonymous with ‘electricity’, and in almost every case where ‘energy’ is used here it is in reference to electrical energy or electricity. This constant error is a matter of scientific illiteracy and it should not be seen in a report at this level (or anywhere else), and must be corrected. Any alert VCE Physics student should be able to put the writers of this report straight on this matter. Secondly, there is a bias or assumption that the main forms of distributed energy in Victoria are solar PV and wind, with only solar PV seen as the source of smaller scale electricity (apart possibly from one mention of small-hydro). In fact, in Table 1. the contribution of biomass has been split three ways and a forth existing bioenergy source (combustible biomass to energy) is ignored. Generally ignored is the potential for small-scale and medium-scale contribution of biomass as is the case across Europe and increasingly in North America and other regions (including India, China, Brazil, Russia and the former soviet countries). Across these countries and regions are many examples of use of straw, woody biomass and combustible non-recyclable municipal wastes for energy production, including of electricity, at all scales from 50 kW up to over 200 MW-e. Black liquor, sewage gas, biowaste, landfill gas are all within the overall category of biomass (along with industry biogas production and woody and agricultural residues), and in fact biomass in Victoria is producing approximately as much electricity as wind annually. Across Australia Biomass is only second to hydro in production of electricity. The use of capacities for the renewable energy sector is a very confusing choice for most civilians (and is often misused by groups wanting to makes statistics sound better for solar PV and wind) and this form is not used as the main figure for reference or comparison in countries like Germany. There the comparisons between different forms of renewable energy, and for the contribution of the renewable electricity sector particularly would be by megawatt-hours MWh (or GWh) of electricity produced over the year. So electricity production from large wind turbines in Victoria averages less than 35% and normally is about 30% of rated capacity, while for household solar PV production is usually only about 20% of capacity over the year, and in some areas down towards 15%. To use the capacity figure alone without mentioning this issue could be seen as a deception on the reading public. Thirdly there are a number of issues or technologies simply not mentioned in this report, and so some important terms are not included in the glossary. These include the option for biogas production from the large amount of putrescible wastes presently going to landfill, or otherwise not utilised (ie cow manure and dairy wash-down water) use of combustible wastes and other biomass co-firing biomass with fossil fuels small electricity generating systems of down to 1 kW capacity utilising biomass or combustible waste, including gasification, and the developing area of heat engines, small ORC turbines and stirling engines So in the glossary there is no entry for bioenergy, biomass, biogas, electricity (vs energy), energy (vs electricity), or gasification. While the entry for ‘renewable energy’ needs to be looked at in the light of the comments I have made, and perhaps there needs to be a ‘renewable electricity’ entry. In actuality the biomass available in Victoria has the potential to be producing over 20% of current electricity needs, up to 50% of heat energy needs and over 30% of transport fuels needs. In light of this the real questions are – 1. Why is this report so dominated by issues of solar PV and wind (non-demand forms of renewable electricity that do not displace baseload generation, and particularly in the case of solar PV are definitely not cost-competitive). 2. Why has solar PV been so artificially supported in this state when it is not an on-demand form of electricity (and so does not effectively reduce need for fossil fueled electricity generation). 3. Conversely, why have the bioenergy technologies not been recognised for their ability to produce on-demand electricity (and heat and transport fuels) that is at least as cost-competitive with on-shore wind (on a levelised cost basis) while being on-demand, resulting in far more job creation, and utilising wastes and residues that otherwise are mostly free-burned or go into landfill with GHG emissions. 4. Why has Victoria not developed a stimulus to energy generation that includes recognition of, or values, production of low emission (ie non-fossil fuel) heat and transport fuels. 5. Why is the primary drive and rationale for feed-in-tariffs not based on primarily on stimulus of systems than genuinely reduce need for energy generated in some cost-effective and cost competitive way: i.e., the various on-demand forms of renewable energy – geothermal heat pumps, small hydro and biomass and waste to energy.