New Green Deal proposed by energy luminaries

Via The Australian this looks promising:

The Morrison government will consider a $25bn private sector-led energy infrastructure plan that could underwrite more than one million jobs, reduce energy costs and boost wages — while also fuelling economic growth by up to 2 per cent.

The proposal, which has been submitted to the government, includes major new private sector investment in upgrading energy infrastructure, new electricity transmission, hydro and electrification of industry to preserve ­energy-intensive manufacturing.

Former Treasury economist Chris Murphy has independently modelled the plan, based on 15 major projects identified by the private sector consortium, Below Zero Emissions, which includes chair of Citadel Group Kevin McCann — a former Origin Energy and Macquarie Bank chair — Atlassian CEO Mike Cannon-Brookes and First State Super CEO Deanne Stewart.

“The modelling of the national economic impacts of this plan shows that it contributes to a stronger economic recovery from the COVID-19 recession,” Mr Murphy told The Australian.

“It does this by adding an average of $25bn to private investment over the next three years as planned projects are developed.

“The demand stimulus from this development work means that next financial year (2021-22) there are an estimated 124,000 more jobs with the plan than without the plan.

“In the medium to long term, the additional investment in low-carbon technologies in areas such as housing, electricity generation and transmission and manufacturing contributes to higher productivity,” Mr Murphy added.

I’m not sure how $25bn creates one million jobs. Perhaps $200bn would. But I have not seen the modelling so can’t say.

What we can say is that this exactly what the Government ought to be doing – big nation-building infrastructure to lift productivity and make Australia leaner and greener – instead of yesterday’s gas pork abortion which now jeopardises the private plan.

David Llewellyn-Smith
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Comments

    • Jumping jack flash

      Scomo will love it!

      Spending 25 billion of taxpayer money on private companies that gouge the Australian people for some of the highest electricity prices in the world, with the loose promise of a million jobs, wage inflation and cheaper electricity. (and no conditions around any of those, of course)

      The PR would be monumental. One million jobs! Wages growth! Greener and cheaper electricity!
      All the boxes ticked.
      He’ll erect a statue of himself, draped in power lines.

      • self stimulated erections appear to be a feature of the PMs mindset.

        perhaps with a few yoga lessons, he could also achieve self-fellaciation too.

        suck it up scomo

  1. I agree this is the kind of thing they ought to be pushing, but I’ll believe it when I hear Scomo announce it! What an about-face that would be!!

      • I see! they’re throwing this out as the ‘great nation-building green-washed cash splash for the planet’ that will justify the importing of the last 12 months quota of human capital that the pandemic spared us from ? now I get it!

  2. Too right we need $200bn. It’s a sop to the halt the CC clamor, but guess it’s a small step in the right direction as long as we’re aware that nothing will replace FFs. Much more is needed on small scale regen farming and a move away from FF mega industrial farming if we’re to have any hope of surviving the 21st C

    Posted this on this morning’s links, but it’s worth re-posting. Worth watching to see the true scale of the dilemma.

    https://www.youtube.com/watch?v=n_gvvj56rzw

  3. Forrest GumpMEMBER

    I’m not sure how $25bn creates one million jobs. Perhaps $200bn would. But I have not seen the modelling so can’t say.
    To put some perspective on this:
    Gorgon ($90B) Gas project employed 8000 on site and office inc admin, support and hangers on’ers.
    Wheatstone ($40B) Gas project employed 6000 on site and office inc admin, support and hangers on’ers.

    Total combined $130B 14,000. Lets round it up to 20,000

    Duration say 6 years:
    The fist 2 years is engineering with say 300 jobs max
    The balance of jobs happens during construction:

    I can’t see how there will be one million jobs, not even 10% of that….

  4. >> I’m not sure how $25bn creates one million jobs. Perhaps $200bn would.
    On slave wages, you could get there..

    • You’re not versed in contemporary economics are you: it’s the magic multiplier effect — create a 1,000 jobs, that turns into a 1,000,000 jobs. It’s true cause I read it in a book – a real one.

  5. What we can say is that this exactly what the Government ought to be doing – big nation-building infrastructure to lift productivity and make Australia leaner and greener – instead of yesterday’s gas pork abortion which now jeopardises the private plan.

    Lack of green energy isn’t a problem. For the delivery of bulk energy (not capacity), wind and solar are the cheapest. But green energy’s intermittency has given rise to heightened energy security concerns. And the government is right to be concerned. It’s not clear that the energy only market design can sufficiently incentivise firm capacity additions. Moreover this has long been recognised as a legitimate concern and is the reason why capacity markets are often stapled onto, otherwise pure, energy designs. Take, for example: https://www.pjm.com/markets-and-operations/rpm.aspx

    Give the government some credit. They have identified that base load is not what is required but that dispatchable capacity is necessary to meet seasonal supply and demand variability as well as shorter time frame intermittency. This is a big pullback from their ill considered love of baseload coal. They realise that the energy sector has been hopelessly corrupted by the bucket loads of renewable subsidies and in some parts has adopted an ideological bent against any non renewable solution so they can no longer be trusted to respond to capacity requirement signals (provided they are tangibly there in the first place)

    • Thats one way to look at it, or it could be that the energy sector has been hopelessly corrupted by the policy directions of the FF industry and their influence over policy in that the required investment in supply firming technology has hampered.

      There has been a concern for a long time that green energy is too intermittent, but the data from the NEM has shown it to be pretty consistent as a whole, you do have times when the wind isnt blowing enough in one location and its a bit cloudy in another but as an overall energy market it is actually surprisingly stable. If every household solar installation was accompanied by a battery capable of 3 hrs supply then we would not only see them become even more stable but we would also see the actual renewable feed push further past daylight hours.

      The biggest problem with renewables is generation at night, and this needs to be the focus, but who wants to invest in anything that can help here when the government of the day keeps amorously pining over coal, you risk having a stranded asset.

  6. Jumping jack flash

    On face value it looks great! Jobs and growth!

    But dig a little deeper.

    The government privatised electricity.
    As a result we now have some of the most expensive electricity in the world, thanks to flexible regulation, blatant gouging and the need for enormous quantities of debt. Check out the electricity sector contracts and wages, very, very well paid. They can access all the debt they ever need.

    And if they want to grab a bit more for their pocket, and obtain more debt, there’s no shortage of cheap labour to steal wages from, thanks to the business lobby.

    Now on top of all that gouging and wage theft they ask the government for an extra 25 billion.

    A million jobs. Riiiiiight.
    Cheaper electricity. Riiiiiiight.

    This is exactly why infrastructure projects are not sustainable solutions. The private companies get all the benefits. They get the ongoing and increased fees, fares and tolls which simply redirect money that could have been used for something else back to those private companies, and whenever they need to maintain or upgrade they ask the government for money!

    Its a great gig.

    • Who is behind it?
      Out-of-touch Aussie elites, including our local version of Bill Gates.

      What do they want?
      Money and glory for themselves.

      What do they say they want?
      jobs and growth for the good of others.

      What marketing will be performed for the plan?
      Former Treasury economist Chris Murphy has independently modelled the plan

      Is there any way of checking their plan?
      Former Treasury economist Chris Murphy has independently modelled the plan

      No. I was hoping there might be an unbiased scientific and accurate way the plan could be validated.

  7. Small error in the quote, now fixed:

    The Morrison government will consider disregard a $25bn private sector-led energy infrastructure plan