Disordering Fantasies of Coal and Technology †MyAssignmenthelp.com

Question: Discuss about the Disordering Fantasies of Coal and Technology. Answer: Introduction In Australia, energy policy is subject to the policy goal of three layer of government. In case of primary industries like coal and other minerals, policies are undertaken through active intervention of state and federal government. In view of interrupted supply of energy, Energy White Paper, a government of science, innovation and industry, designs Energy policy framework. In recent days, energy supply in Australia is highly disrupted. Therefore, a steady long term policy framework is needed to handle the situation. In a recently published article in The Australian, President Malcom Turnbull has announced future energy policy of the state. Present paper makes an economic analysis of the published article. The government has set a high bar on the national energy policy. The target is to provide a uninterrupted power supply at an affordable price. At the same time the target of reduced energy emission will also be kept in mind. The prime minister has given assurance to energy chiefs that the government is designing long-term policies to provide certainty to too the investors investing in new stations (theaustralian.com.au 2017). The federal government has adapted the recommendation of reviewing electricity market and taken a clean energy target mission. The federal officials are arranging meetings with retail electricity suppliers. Detail discussions has made with them to know the accrual picture of the energy market. Before taking any long-term policy, focus has been given on short run policy measures. This information is important to take decision on long term policy (theconversation.com 2017). Another long run policy target in energy sector includes attempts to fill the gaps of base load power. However, government also recognizes the importance to maintain an investment friendly environment to fulfill the long run policy targets. Economic theories and concept Supply of a good or services present producer ability of supply the good or service at different prices. In free market equilibrium supply matches with the demand and hence efficient price prevail in the market. Any change in demand supply condition leads to abnormally high or low price in the market. If there are any shortage in the supply then supply curve shifts to the left. In this time, demand exceeds available supply, pushing the prices up (Cheung and Davies 2017). The situation of supply shortage is explained in the following diagram In Australia, consumers are suffering from power shortage and this pushes the price up. A significant portion of Australias overall power supply comes from South Australia. The subsidized wind power plants in these regions enjoy considerable cost benefits (Gillingham et al. 2013). Closing down of the existing plants in other parts of Australia has created problem in supply front. The situation further aggravates with the decision of some gas plant to hold production capacity. All these created trouble to consumers who are left with paying high price and even suffering from a power shortage (Hughes and Urpelainen 2015). The situation thus indicates the inefficiency of government interventionist policies. The subsidies given to energy plants in South Australia lead to concentration of market power in the hands of energy suppliers there (Marshall 2016). Energy plants in Victoria and few powerful gas generators enjoy considerable market power. The decision to provide subsidy to plants was taken under the scheme of Renewable Energy Target. However, the recent problem of power shortage and high price questions the subsidy decision of labor government (Lenzen et al. 2016). Prime Minister Turnbull thus gives stress on an efficient energy management policy. Flawless supply of energy requires storage of energy. It is needed to store the energy in appropriate form such that it can be made available whenever needed to match electricity supply and demand. Storing energies in the form of electricity in batteries, heat or as pumped water is usually subject to high cost (Chen and Yin 2017). Recommendation Energy is used in every sphere of economic activity. Industrial progress largely depends on the flawless supply of energy. Therefore, federal government should give attention in designing efficient energy policy. This requires detailed investigation on the existing inefficiencies of the management. The management should focus on securing long-term interest of the consumers. The unutilized energy resources should be reviewed and make an afford to utilized these resources. An advisory board should be formed for efficient designing of energy policy. More use of renewable energy should be given focus to secure an uninterrupted power supply both for domestic and industrial purpose. Conclusion In the assignment, analysis has been done on energy policy of Australia. In connection to disturbance recorded in the power supply in the previous year appropriate energy policy is utmost need of Australia. In this regard, Prime minister has declared long-term policy goal of the nation. Special attention has given on the issue of supply shortage and proper storage of energy so that it can be made available at times of crisis. In the end, some recommendations have been made for betterment of energy policy in Australia. References Chen, W. and Yin, H., 2017. Optimal subsidy in promoting distributed renewable energy generation based on policy benefit.Clean Technologies and Environmental Policy,19(1), pp.225-233. Cheung, G. and Davies, P.J., 2017. In the transformation of energy systems: what is holding Australia back?.Energy Policy,109, pp.96-108. Gillingham, K., Kotchen, M.J., Rapson, D.S. and Wagner, G., 2013. Energy policy: The rebound effect is overplayed.Nature,493(7433), pp.475-476. Hughes, L. and Urpelainen, J., 2015. Interests, institutions, and climate policy: Explaining the choice of policy instruments for the energy sector.Environmental Science Policy,54, pp.52-63. Lenzen, M., McBain, B., Trainer, T., Jtte, S., Rey-Lescure, O. and Huang, J., 2016. Simulating low-carbon electricity supply for Australia.Applied Energy,179, pp.553-564. Marshall, J.P., 2016. Disordering fantasies of coal and technology: Carbon capture and storage in Australia.Energy Policy,99, pp.288-298. Turnbull works on long-term energy policy. [online] Available at: https://theaustralian.com.au/news/latest-news/turnbull-works-on-longterm-energy-policy/news-story/28110d4d8114c95f2a1929c85f6a42d4 [Accessed 12 Aug. 2017]. Turnbull's energy policy vision: heavy on direction, light on action. [online] Available at: https://theconversation.com/turnbulls-energy-policy-vision-heavy-on-direction-light-on-action-72272 [Accessed 12 Aug. 2017].