Chris Watkin, ABB Australia, May 2012 Australian ... fileAustralian Government Carbon Tax Chris...
Transcript of Chris Watkin, ABB Australia, May 2012 Australian ... fileAustralian Government Carbon Tax Chris...
Australian Government Carbon Tax Chris Watkin, ABB Australia, May 2012
Introduction
© ABB Group
July 4, 2012 | Slide 2
Australian Government – Carbon Tax
The carbon price is part of the
Government‟s Clean Energy
Future Plan and will commence
on 1 July 2012
Introduction
© ABB Group
July 4, 2012 | Slide 3
Australian Government – Carbon Tax
Introduction
© ABB Group
July 4, 2012 | Slide 4
Australian Government – Carbon Tax
Introduction
© ABB Group
July 4, 2012 | Slide 5
Australian Government – Carbon Tax
Clean Energy Plan Includes:
Carbon Tax
Renewable Energy Investment/Financing
Continuation of the RET
Investment in the Land Sector/Farming
emissions reduction
Introduction
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July 4, 2012 | Slide 6
Australian Government – Carbon Tax
Targets
Unconditional 5% reduction on 2000
levels by 2020
Conditional 15% and 25% targets based
on International Agreements
Long Term target of 80% reduction by
2050
Introduction
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July 4, 2012 | Slide 7
Australian Government – Carbon Tax
44 Government programs initiated
3 Programs of note:
„Energy Efficiency Opportunities‟ for
large businesses
„Energy Savings Initiative‟ with
obligations on energy retailers
„Energy Security Fund‟ offering
Carbon units free
Contracts for closure
Introduction
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July 4, 2012 | Slide 8
Australian Government – Carbon Tax Who„s Liable
Do you currently report to NGERS, or operate a landfill, or are you a
natural gas supplier?
Do you operate any facilities that have over 25 kilotonnes** of direct
(scope 1) emissions after deducting emissions from:
liquid fuels, LPG, CNG and LNG;
synthetic greenhouse gases (excluding PFCs from aluminium
smelting); and
decommissioned coal mines?
Are you a natural gas
supplier?
Yes
No
Yes
No
Yes
You are
unlikely to
be a liable
entity*
You are a
liable
entity
You are
a liable
entity
You are
unlikely to
be a liable
entity*
Do you supply natural gas
to small end users?***
Yes
No * Under the Carbon Pricing Mechanism the NGER Act will be extended to cover Government facilities and facilities located in external
territories, the exclusive economic zone, waters of the continental shelf and the Joint Petroleum Development Area. Such facilities could be
liable under the Carbon Pricing Mechanism.
** Previous NGER reporting requirements only extended to constitutional corporations. Liability under the carbon pricing mechanism will
extend to a wider range of entities. Consequently some liable entities under the mechanism will not have previously reported under NGER.
*** Users with less than 25 kilotonnes of direct emissions from use of natural gas annually.
© ABB Group
July 4, 2012 | Slide 9
Australian Government – Carbon Tax
The Carbon Tax is expected to cover around 500 businesses
operating in Australia
60 are primarily involved in electricity generation
100 are primarily involved in coal or other mining
40 are natural gas retailers
60 are primarily involved in industrial processes (cement,
chemicals and metal processing)
50 operate in a range of other fossil fuel intensive sectors;
and
the remaining 130 operate in the waste disposal sector.
Who„s Liable
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July 4, 2012 | Slide 10
Australian Government – Carbon Tax
Manufacturers and Importers of
Synthetic Greenhouse Gases
Who Else is Liable
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July 4, 2012 | Slide 11
Australian Government – Carbon Tax
The price per tonne of synthetic greenhouse gas will be based on the carbon price and the global warming potential for each gas relative to carbon dioxide
ie. $23 / Tonne x CO2e
Legislated under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989
Synthetic Greenhouse Gases
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July 4, 2012 | Slide 12
Australian Government – Carbon Tax
Importers of synthetic greenhouse
gases, including in manufactured
products, will be required to pay an
equivalent carbon price based on the
global warming potential of each gas
relative to carbon dioxide.
These gases are not manufactured in
Australia
Synthetic Greenhouse Gases
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July 4, 2012 | Slide 13
Australian Government – Carbon Tax
Products which are likely to be affected by
the proposed changes include:
air conditioners
refrigerators and freezers
specialty aerosol products
fire protection equipment
specialty solvents
high voltage electrical switchgear
Synthetic Greenhouse Gases
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July 4, 2012 | Slide 14
Australian Government – Carbon Tax
Sulphur Hexafluoride - SF6
CO2e of 23,900
Ie. Carbon Tax of $23 x 23,900
$549,700 / Tonne
$549.70 / kg
Relevant Gas for T&D Industry
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July 4, 2012 | Slide 15
Australian Government – Carbon Tax
Importers of SF6 will require a licence from the Department of Sustainability, Environment, Water, Population and Communities
Importers of SF6 will be required to account for the amount of gas brought into Australia from July 1, 2012
A quarterly SF6 “Carbon Tax Return” must be sent to the department
Administration for Importers
© ABB Group
July 4, 2012 | Slide 16
Australian Government – Carbon Tax
The current plan for the Carbon Price:
Commencement price of $23 / T – 1st July 2012
Annual increase of 2.5%
1st July 2013 - SF6 $563/kg
1st July 2014 - SF6 $577/kg
On 1st July 2015 the carbon tax will transition to a flexible
price under an emission trading scheme
Including a $15 floor price
The next few years......
© ABB Group
July 4, 2012 | Slide 17
Australian Government – Carbon Tax
72kV LTB ~3kg SF6 = 7% increase
72kV DTB ~10kg SF6 = 12% increase
145kV LTB ~12kg SF6 = 15% increase
145kV DTB ~35kg SF6 = 25% increase
145kV GIS ~100kg SF6 = 25% increase
Impact on HV Switchgear
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July 4, 2012 | Slide 18
Australian Government – Carbon Tax
SF6 in typical 5 bay 145kV LTB AIS
substation
5 CB x 12kg x $550/kg = $33,000
SF6 in typical 5 bay 145kV DTB AIS
substation
5 CB x 35kg x $550/kg = $96,250
SF6 in typical 5 bay 145kV GIS substation
5 CB x 100kg x $550/kg = $275,000
Impact on Typical Substation
© ABB Group
July 4, 2012 | Slide 19
Australian Government – Carbon Tax
SF6 purchases per annum
3 tonnes
3 x $550,000 = $1,650,000/yr
Large User
9 tonnes /yr
9 x $550,000 = $4,950,000/yr
Impact on Typical Utility
© ABB Group
July 4, 2012 | Slide 20
Australian Government – Carbon Tax
Australia‟s CO2 Emissions = ~600Mt/yr
CO2e of SF6 estimated purchases
~60T/yr at 23,900 = ~1.4Mt/yr
Impact of SF6 vs CO2
© ABB Group
July 4, 2012 | Slide 21
Australian Government – Carbon Tax
In Summary
Carbon Price = $23/T CO2e
Commencing 1st July 2012
Fixed Pricing for 3 years
ETS commencing in 2015 with floor price
Synthetic Greenhouse Gases charged at
CO2e rate
SF6 rate = $550/kg
Summary
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July 4, 2012 | Slide 22
Australian Government – Carbon Tax
Thank you