The development of the Powerlink proposal connecting the Sunshine Coast to the Central Queensland coal fired power stations provides the minimum potential to quintuple electricity consumption in the Sunshine Coast area. Powerlink’s own figures are for a 30% increase in electricity demand over the next seven years, and up to 100% in the next 20 years. Using Powerlink’s own demand forecasts it is estimated that by 2020 they will be facilitating the increase in annual greenhouse gas emissions of more than 400,000 t Co2-e in the Sunshine Coast area alone, an estimated 59% increase on 2008 levels.

“Considering the urgent recommendation of several agencies of the United Nations that nations must take immediate action to reduce the emission of greenhouse gases, it is negligent to assume that the current methods of power generation and distribution will be environmentally and economically viable in as little as ten to fifteen years time.” [note 3]

• Recognition across the political spectrum that an emissions trading scheme must be adopted. The Federal Government is due to deliver by June 2008 a report on the economic impacts of climate change policies and interim emission reduction targets to reach the stated aim of reducing emissions by 60% of 2000 levels by 2050.
• Emissions trading to be introduced by 2010.
• Mandatory renewable energy target of 20% adopted by 2020, meaning that 20% of all electricity sold must come from renewable sources by 2020 – this is not cleaner sources such as nuclear, clean coal or gas, but real renewable sources such as wind, solar, geo-thermal etc.
• Australia’s commitment to the Kyoto Protocol and start of negotiations for the post-Kyoto period from 2012, in which Australia now participates.
• The Queensland Government has set up the Climate Change Council to advise on climate change matters in the state.
• Many local government entities in our state aim to reduce greenhouse gases as part of their development objectives and pursue multiple initiatives; e.g. Brisbane City Council will only purchase green energy within three years, of the former councils making up the Sunshine Coast Regional Council, Maroochy Council were investigating energy efficient street lighting and Noosa Council’s infrastructure development plans noted that “water and energy are used efficiently in an attempt to minimise greenhouse gas emissions and ensure the sustained supply of resources.” [note 4] We will be lobbying council to continue with these initiatives.

These significant policy changes which impact the electricity generation and distribution industries have not been factored into the plans of Energex or Powerlink and have been given little weight in the publicly available information.

• In the last 40 years electricity demand in the region has grown by around 500%
• …forecasts indicate electricity demand will grow by about 30% over the next seven years, and by as much as 100% in the next 20 years
• Queensland Government forecasts indicate the population of the whole area is expected to grow by 1.8% per annum over the next 10 years
• The average household today consumes 70% more electricity than a mere 10 years ago!

The Powerlink / Energex energy demand forecasts take little or no account of the following:

• The impact of the recent change in Federal Government policies (emissions trading system 2010), mandatory renewable energy target of 20% by 2020, interim emission caps to meet the long-term goal of emission reduction of 60% by 2050 (recommendations due in June 2008) and the signing of the Kyoto Protocol;
• Targets for the reduction of energy demand through their demand management programs. Energex further state that “The attractiveness of demand management waned in the late 1990s due to energy market reforms and the creation of the National Electricity Market.” [note 6]
• A significant role for other sources of energy in their planning and forecasting;
• Proactive management of the future demand and supply of electricity in Queensland through the investigation of potentially cheaper methods. Powerlink have chosen instead to leave it to individuals, as illustrated by their statement “The responsibility for whether households use more or less electricity rests with individuals – it’s a personal choice.” [note 5]

• Cost of fossil fuel used in energy generation
• Cost of water used in energy generation
• Cost of infrastructure (required for energy generation and transmission)
• Cost of carbon emissions (as a result of emission trading from 2010 onwards)
• Cost of acquiring easements
• Devaluation of indirectly affected property and business values (for which there is no direct compensation)
• Additional adaptation costs of responding to climate change events, such as storm surge, extreme weather events, less rainfall, economic impact on environmental tourism (eg Barrier Reef) and living in a warmer climate
• Environmental damage (flora / fauna / scenic amenity)

When the total costs of the proposals are added, imagine what this level of investment could purchase in terms of the alternatives (renewable energy and demand management initiatives).