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Alison Middleton

Can the Northern Territory meet its greenhouse gas targets?


MELINDA JAMES, PRESENTER: The Northern Territory is known for its consistent sunlight, hot thermal springs and big tidal movements, all offering potential sources of electricity. But can the sun, the tides and hot rocks be harnessed to power our homes and businesses? A green energy taskforce appointed by the Territory Government is looking for answers. The group is trying to work out how the Territory can get one-fifth of its energy from renewable sources within the next decade. Alison Middleton reports.

KARL HAMPTON, NT CLIMATE CHANGE MINISTER: We've certainly got aspirations of being a world leader in terms of renewable energy and low emissions energy in remote communities.

PETER CHANDLER, NT OPPOSITION ENVIRONMENT SPOKESMAN: We know government today has signed up to reducing our carbon footprint. They're making no attempt whatsoever to meet that. In fact, it's like they've given up. It's too hard.

STUART BLANCH, NT ENVIRONMENT CENTRE: We're really a long way behind other countries. Well, I think we only have about half of one per cent of Darwin and Katherine and Palmerston's power is currently renewable, so 99.5% is fossil fuels.

MARION BUWALDA PEDLER, DARWIN RESIDENT: So, this is the meter that Power and Water put in and it records the amount of renewable energy we feed into the grid.

ALISON MIDDLETON, REPORTER: Darwin resident Marion Buwalda Pedler is doing her bit to use renewable energy. She's one of 500 people in the Territory who have bought roof solar panels. And she's surprised by how much power they produce.

MARION BUWALDA PEDLER: I'm really impressed, I'm averaging about 40% of my daily use. It's producing about just under 8 kilowatt hours a day which is close to half of our power use.

ALISON MIDDLETON: And she says it's gratifying to help the environment.

MARION BUWALDA PEDLER: I think it's a fabulous deal especially if you're going to be in your house for another five years. You'll end up breaking even. But just knowing that you're doing something for the environment's a really good thing.

ALISON MIDDLETON: Overseas, renewable energy is big business. Denmark has pioneered wind power. Giant turbines are already generating 20% of the nation's power. Environmentalists say the Territory needs to take note.

STUART BLANCH: If we're not building large-scale solar or geothermal or tidal power plants come, say, 2015, we're not going to probably get there by 2020. So we only have a few short years to work out what are the likely renewable energy opportunities for us.

ALISON MIDDLETON: The Territory is powered by natural gas. The fossil fuel is readily available and it's cheaper than renewable energy. Renewables make up less than three per cent of the Territory's power. Under a national agreement that has to increase to 20 per cent by 2020 or the Power and Water Corporation will face millions of dollars in fines.

TREVOR HORMAN, POWER AND WATER CORPORATION: Well, that's not an option we're looking at. We've satisfied the obligations for the last 10 years and intend to continue doing so and even exceed the target.

KARL HAMPTON: I'm extremely excited. I'm extremely confident we're going to be able to meet these targets.

ALISON MIDDLETON: A task force of experts has been given the job of working out just how to do it. Part of the strategy is moving remote communities from diesel to solar. There are solar power stations at six remote communities. Another three are in the tender process. But, that won't be enough to meet the 20% target.

CHRISTINE CHARLES, GREEN ENERGY TASKFORCE CHAIRWOMAN: Look, I think the reality of energy in the Territory is that we're a distributed population and the answer is going to be a combination of a whole range of strategies. It's not going to be one big answer.

ALISON MIDDLETON: With the pressure on to find renewable sources of energy, environmentalists say putting big money into large projects is the answer.

STUART BLANCH: If there was a $100 million incentives fund there that government could use to lure major companies here, then I think the Territory would move from being a laggard in Australia when it comes to renewable energy, to jumping ahead other states.

ALISON MIDDLETON: Geothermal energy is one option, harnessed by pumping water down to hot rocks kilometres underground, creating steam to drive turbines.

KARL HAMPTON: Last year we put out expressions of interest to the private sector in terms of geothermal exploration. And that saw some 17 submissions come forward last year, which are now waiting to be assessed.

ALISON MIDDLETON: Some of the biggest projects being touted generate power from the ocean. Marine energy has been trialed elsewhere in Australia. Now an $800 million tidal energy plant is being proposed for the Territory. But it wants government help.

ALAN MAJOR, TENAX ENERGY DIRECTOR: The Northern Territory Government and the Federal Government need to be putting support schemes in place to promote the large scale investment that's required in renewable energy, similar to the actions that have been put into the oil and gas and to the rural sectors and the mining sectors.

ALISON MIDDLETON: Even if this project gets up and running, there's scepticism about the Territory's ability to meet its target which means it'll either face fines or have to buy renewable energy credits from other states.

ALAN MAJOR: It's inevitable that the Territory will be incapable of producing sufficient electricity from renewable sources by 2020. It's a reflection of the size of the Northern Territory and the fact that it is an isolated grid.

ALISON MIDDLETON: The Opposition says the Government has already missed a big opportunity to invest in renewable projects with Power and Water announcing it's buying two new gas turbines.

PETER CHANDLER: You've got a government business enterprise that are making investments which are old technology, $120 million into old technology, so how does this help us meet our target, it doesn't help us whatsoever.

ALISON MIDDLETON: But the Territory Government is defending the decision to rely on gas for now.

KARL HAMPTON: If we don't get it in now then we are going to be behind the eight ball. Gas turbines are the most reliable and the most stable source of energy that we've got.

ALISON MIDDLETON: Everyone agrees, meeting the renewable energy target will be tough. The taskforce has been given until the end of the year to report back to government on the best way forward. But time is running out.

CHRISTINE CHARLES: People believe this is an achievable target. But it's also a huge opportunity, we're a relatively small jurisdiction, there's quite a lot of international interest in the sorts of thing you might be able to trial in the Territory.

STUART BLANCH: We have a long long way to get to 20% but I actually think we could far exceed 20% if the Territory Government and Power and Water Corporation really decide to invest in renewable energy.

7.30 NT