As a provider of renewable energy, many environmental factors must be taken into consideration prior to committing to the industry itself. Better Power is entering the energy industry as a provider of Renewable (green) power to Australian households and businesses. Renewable energy is energy which can be obtained and used from Natural Resources that can be constantly replenished such as bioenergy, geothermal energy, hydropower, ocean energy, solar energy and wind energy. Subsequently the energy industry will be analysed and discuss key General and Specific environmental factors in relation to Better Power and its probable success in the energy industry.
The world economy needs ever-increasing amounts of energy to sustain economic growth, raise living standards and reduce poverty. In a growing economy a business will have a better chance of surviving and earning more on return on investment. According to the World Bank, Australia’s business environment is among the top ten in the world in terms of ease of doing business. Currently Australia is ranked 4th in starting a business which is bench marked against 189 countries. On average the Australian Gross domestic product grew at a rate of 4% over 14 years therefore supporting Australia as being one of the safer economies. Better Power have a higher probability of success in starting a business in a growing economy where there will be demand for consumption of renewable energy.
Currently the Australian Government endeavour to reduce pollution by 80% by year 2050 by promoting clean and renewable energy. This is in place by Carbon Tax Bill 2013 which is making investment more attractive in renewable energy sector. Australia is a low political democratic risk country which is...
... middle of paper ...
... those being AGL Energy Limited, Infigen Engery, Acciona Energy Oceania Pty Ltd, TrustPower Limited, Hydro-Electric Corporation. AGL and Meridian launched a 420 megawatt Macarthur Wind Farm in April 2013, which is the largest in the country. It would be difficult to penetrate the market given the top 5 producers of wind energy also control the market as a producer and supplier. Given the customer base is on the east coast of Australia which is covered over three states Victoria, Queensland and New South Wales due to the population density. The focus of Better Power should be to invest in production of renewable energy on the eastern coat with the help of ARENA. Majority investment should be focused on Wind and Solar industry as they are the major producers for renewable energy.
The potential customer data base comprises of household and businesses
As a natural resources company, BHP Billiton is vulnerable to changes in the environment and policies regarding the environment. With each environmental downfall, profit is jeopardized, which can push growth and innovation back. BHP Billiton has been heavily affected with blackouts in South Australia that has been interrupting production in Olympic Dam since September 28 during a two-week blackout. Without power supply security, BHP Billiton is having difficulty keeping power prices affordable in South Australia. The total estimated profit loss of the power outages was $450 million. These obstacles have disturbed BHP Billiton’s ability to compete globally with electricity price rises.
Instilling this new way of energy usage into off-grid communities will inevitably increase the state of living for those in cities and other well populated areas. The change to renewable energy sources could drastically lower the pollutants currently being dispersed into the atmosphere by coal mines and other harmful power options,
-Vulnerable to China (30% of Australian exports went to China in 2012. Although they profited from the fast growing Chinese market, they are also vulnerable for export volumes and pricing negotiations)
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
It is time to push harder for renewable power, but to push in a smarter way. Recent advances have made wind and solar power more competitive than ever. Now, for renewable power to reach its potential the world’s approach to it will have to grow up, too. Governments will have to redesign their renewable-power polic...
Prior to 2013, Australia was governed with a much more liberal style of leadership by the Labor Party. Environmentally friendly, they recognized the dangers of a warming world. In 2012 they implemented a carbon tax on the 348 largest business polluters; charging them a little more than $22 for every ton of greenhouse gas emitted ("Australia Votes to Repeal Carbon Tax."). Unpopular and controversial from the beginning, it became a major political and social debate which the Liberal Party successfully used during elections to oust the Labor Party. The Liberal Party vowed immediate repeal of the carbon tax if elected and on July 11, 2014 they kept their promise (“Australia Votes to Repeal Carbon Tax”). It was replaced by a 2.5 billion dollar taxpayer funded ‘Direct Action Plan’ which instead pays polluters to emit less pollution and switch to cleaner energy. Carbon dioxide emission reduction is such an important global problem, it needs to be immediately addressed, but not at taxpayer expense. The new ‘Direct Action Plan’ is nothing more than a paper promise that will do nothing for both the environment or greenhouse gas reductions and has been widely criticized by the global community for not going far enough in reducing dangerous greenhouse gases (Taylor and Hoyle). Global governments, including the United States and China, question whether Australia will even be able to meet a 5% reduction of 2000 gas levels using
There has been advancements on many fronts to make economical and financial viability assessment for Renewable Energy Projects possible, including (but not limited to) production costs (e.g.McAloon, F. Taylor, Yee, Ibsen, & Wooley, 2000); transportation costs (Batidzirai, 2005; Overend, 1982; Searcy et al., 2007); capital costs (Bridgwater & Double, 1991; Gallagher, Schamel, Shapouri, & Brubaker, 2006); resources availability (Graf & Koehler, 2002); environmental performance (Von Blottnitz & Curran, 2007; Taheripour, Hertel, Tyner, Beckman, & Birur, 2008; Pimentel & Patzek, 2007); regional socio-economic development (Swenson & Eathington, 2006), and organizational costs (Altman & Johnson, 2008).
In the 1970's, the increase in oil and fossil fuel prices helped wind power return as an economical alternative energy source. Governments all aroun...
Renewable energy and business are closely related. There are many countries in the world producing electricity from renewable energy sources and using it in the intermediary way. This intermediary chain is private business. Everyone knows the fact that business works better when it belongs to private sector and not to the government. In this section, we focus on renewable energy and business. We analyze several renewable energy companies and research how business can influence the renewable energy market.
According to the US Environmental Protection Agency, over half of the oil used in the USA is imported. Most of this imported oil is located in the middle east and is controlled by OPEC members. Subsequent oil price shocks and price manipulation by OPEC have cost our economy dearly—about $1.9 trillion from 2004 to 2008—and each major shock was followed by a recession (Reduce). We may never be able to fully eliminate our need to import oil, but we can reduce cartel market control and the economic impact of price shocks by reducing our demand (Reduce). One way we can reduce our reliance on oil is through investing in renewable energy. Solar power, wind power, and hydro power are all forms of energy which come from renewable resources. Unlike oil, solar, wind and hydro electric power is abundant and can be obtained locally.
Since every important aspect of society runs on fossil fuels, and fossil fuels will eventually run out, it is extremely important that we further develop and implement renewable energy into everyday processes. As our population increases, so will our energy demands. We must make changes before it is too late.
Firstly, the introduction of solar energy will substantially increase energy efficiency at common households. Solar energy is completely free once its installed and can be converted either to electricity or hot water. This is a sustainable resource which doesn’t run out and guarantees a constant supply of energy as long as the sun shines. Moreover solar panel are considered to be a clean and green energy as it attained without corroding the nature and also doesn’t cause any harm to the environment. ( greenhouse gases) . The solar credits program is a part of Australia’s Renewable Energy Target, in which the Australian government has committed to delivering 20% of electricity supply by 2020 from renewable sources like the solar power. Federal Government places a mandate on electricity retailers who exceeds the certain level of energy use. The retailers then either choose to pay of the penalty or install ...
"Jobs in Renewable Energy Expanding." Worldwatch Institute. Worldwatch Institute, 8 July 2008. Web. 23 Feb. 2014.
The world that we live into today affords us the expectation that the flip a switch will turn the lights on. As populations increase and developing nations undergo dramatic economic growth, this energy demand will only continue to grow. The International Energy Agency (IEA) believes that “the world’s energy needs could be 50% higher in 2030 than they are today” (ElBaradei). Given this projected growth, it is necessary for world leaders must take action to secure the energy supply. Meaning that world leaders need to start seriously considering an alternative to non-renewable energy sources. “In 2012, the United States generated about 4,054 billion kilowatt-hours of electricity. About 68% of the electricity generated was from fossil fuel (coal, natural gas, and petroleum), with 37% attributed from coal” (U.S. Energy Information Administration). The fossil fuels that are used to supply over half of our country’s energy are in finite supply and are increasing in price to astronomical heights.
middle of paper ... ... g the Energy Revolution." Foreign Affairs. Nov/Dec 2010: 111. SIRS Issues Researcher.