Towards a Sustainable Energy Future for Australia

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Towards a Sustainable Energy
Future for Australia

• Prof Paul E Hardisty August 2008

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The Direction

• Economic Context
• Demand Management
• Efficiency making the best of what we have
• New Technology
• Dont make things worse as we adapt

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Actual oil prices since 1980
per barrel
Actual oil price
5 projection of increase in oil price from 1988
2 projection of reduction in oil price from
1988
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True Sustainability is Economic

• Financial analysis VS Economic analysis
• Economics maximisation of human welfare
• Include external costs and benefits
• Economic Sustainable
• REC 1 Market forces will find optimum solutions
  with proper price signals / level playing field

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Cheaper to Act Now than Later
Source EPRI, 2005
14/11/2009
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Solar Parabolic Trough
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Nevada Solar One - 64MW
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Anthropogenic Feedback Loops
OLD SOLUTION
Burn Coal
CLIMATE CHANGE
Desalination
Drought
OUR RESPONSE
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Anthropogenic Feedback Loop
OLD SOLUTION
Burn Fossil Fuels
CLIMATE CHANGE
Air Conditioning
Rising Temperatures
OUR RESPONSE
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Anthropogenic Feedback Loop
Cement, steel, vehicles, land clearing
Burn Fossil Fuels
CLIMATE CHANGE
Infrastructure projects
Rising Sea Levels
OUR RESPONSE
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A Sustainable Energy Future

• True level playing field allows market to
  optimise as it should
• Achieved by examining full financial and economic
  costs and benefits of each option
• Global change, not just climate change
• Demand and supply responses
• Mix of energy sources likely required for
  optimality
• Conventional high efficiency
• Coal with carbon elimination
• Mix of Renewables
• Nuclear
• Maximisation of human welfare is the sustainable
  goal

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Recommendations

• Economics provide the market with price signal
• Demand Management use less energy
• Efficiency making the best of what we have
• New Technology a mix of options will do the
  trick
• Dont make things worse as we adapt

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THANK YOU
delivering profitable sustainability
14/11/2009
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