‘How the Sharks, Swallow the Minnows’ The Capitalist and Government Co-option of the Australian Solar Industry in Australia. Andrew Stretton 29/04/2012 Index 1) Introduction 2) What You Do, Is What You Get 3) Facts Are Stubborn Things 4) The Galley, in the Ship of Fools 5) How Green was my (Hunter) Valley 6) HMAS Co-option 7) Waking Up To Reality 8) Conclusion - (Sub-titled – Congratulations, if you’ve read this far, you belong to the less than 5% of people who might actually care about what’s going on around you).
1) Introduction
ʻThe surest defense against Evil is extreme individualism, originality of thinking, whimsicality, even—if you will—eccentricity. That is, something that can't be feigned, faked, imitated; something even a seasoned imposter couldn't be happy with.ʼ Joseph Brodsky Life is simply wonderful sometimes, especially for an Eccentric Ranter. Boundless opportunities exist, if one is observant enough, to expose the strategic shenanigans that are floating around in the ether of what is still, without question, a Capitalist driven PostModernist World. When one has spent 20 years firmly ensconced in the ‘Marketing’ of Pharmaceutical / Medical Supplies, dined with Federal and State Politicians, traveled the World in search of ‘profit’, sat in numerous Board Room meetings, nominated and run as an Independent for Local Council Elections, one becomes acutely aware of the ‘lengths’ that the ‘Neo-Con’ World is prepared to go to, in order to achieve its aims. The Neo-Con World takes very conscious decisions, deliberate actions designed to bring about pre-determined outcomes. The outcomes are always in the form of ‘profit’ or ‘gain’, exploitation at someone or something else’s expense. This is hardly ‘hidden’. Anyone with any modicum of intelligence will understand that these characteristics are a ‘given’ in the day-to-day machinations of the Neo-Con World, and that the only one’s left remaining to bemoan the unfairness of it all, are the victims. As one who has traversed the politico / social spectrum, from the ‘Neo-Con’ World to the ‘Left’, to ‘Radical Left Anarchy’ and finally to ‘Post-Left Anarchy’, it is fascinating to look at how the moderate majority ‘left’ and even those of the so called ‘radical left’, have become nothing more than a co-opted version of the Neo-Con World, albeit with an apparent, ‘caring face’. A prime example of this is the Solar Industry. On anecdotal evidence, large numbers of Small Scale Solar Businesses are owned and operated by small business people who have had or do have a genuine interest in the Environment and the Social and Environmental equality that renewable energies can bring, a Traditional ‘Left’ position. Given this, it is more than interesting, when one looks at this Industry today, to see how rapidly it is
morphing into nothing more than a full-blown representation of the Neo-Con World. It would therefore appear, that these very same Solar Industry Owner / Operators, who have held traditional ‘left’ positions, have either rolled over in tummy tickling resignation to the Neo-Con World, or are simply ignorant as to what is unfolding and or where it will lead. We could therefore put the Solar Industries current position down to naivety, willful ignorance, hope, or, a lack of confidence. Whilst all of these possibilities will almost certainly exist amongst a few of the Small Scale Solar Industry Owner / Operators, the most likely scenario for the vast majority, as we will see, is that they have fallen for the pervasive greed that has been dangled before their eyes, via the ‘strategic alliance’ of the Big Corporate Boys and the Government. This article will explore just how it is that the ‘Big Corporate’ players, along with the Federal and State Governments, have very cleverly started the process of the eventual take-over of this fledgling multi-billion dollar Industry. Of course that will only happen completely, when the timing is ‘right’, when the ‘critical mass’ and ‘efficiency’ of the industry reaches an acceptable point of profitability. In the interim, the small scale Solar Owner Operator will be used, via their own greed, as a means to help fund their sectors eventual demise. On a recent trip to Armidale New South Wales, to, amongst other things, install a Small-Scale Solar System (as an Un-accredited Solar Installer), I was fortunate enough to pass by one of the biggest Coal Mines and Power Stations in Australia, owned and operated by Hunter Valley Coal and Macquarie Generation amongst others. The enormity of this Coal Mine and the damage created from the raping and pillaging of the Earths ‘Resources’ shocked me to my core. It is almost impossible to describe the massive amount of destruction, expanding daily, all in the name of providing everincreasing amounts of electricity to hungry ‘consumers’ in New South Wales, South Australia and Queensland. But, as so often happens in my life, it was the installation of the Small Scale Solar System in Armidale that ironically, led me to something equally as shocking, the rather dubious links that exist between the ‘Clean Energy Council’ (Australia’s Peak Solar Industry Regulatory Body) and the Corporate Giants that run the Hunter Valley Coal Mine and Power Station. This article explores those
links, along with some others, and investigates just how it is, that the Solar Industry in Australia, the small scale suppliers and installers are being ‘stage managed’ to suit the agendas of the Coal Industry, the Power Generation Companies and Governments, and how that ‘management’ will lead to the initial co-option and eventual demise of the Small Scale Solar Owner / Operator. The ‘Co-option’ of the Environmental Movement by the Capitalist System has been well underway for at least 20 years, what we will see in this article, in relation to the Solar Industry, is nothing more than a representation of how that ‘Co-option’ unfolds. The conclusion to this article will focus on just what it is that we can do, to begin wrestling back the power and control from Governments and their Big Corporate Bed Mates.
2) What You Do, Is What You Get ‘Civilization implies Specialization. Specialization is forgetfulness of Total Values and the establishment of false ones, that is Philistinism. A savage can never fall into this condition, his or her values are all real, he or she supplies their own wants and finds them proceeding from themselves, not from an estimate of those of others. We must in practice be specialists; the division of Labour ordains us to know something of one subject and little of others; it forces Philistinism down our throats whether we like it or not.’ Judge Learned Hand - 1893 What the ‘learned’ Judge doesn’t (conveniently) say is that we do not have to swallow the Philistinism that those in power are attempting to force down our throats. We have a choice, whether we have the courage to exercise it or not, will determine not only our future, but also the future of generations to come. This courage demands of us a principled stand, a deep desire to be ever vigilant, to never stop asking questions in our search for the truth and most critically, to forge our own paths based on what we inherently know to be right, just and fair, and to do this, whether we gain or lose, something, as we shall soon see, that the Solar Industry long ago went weak at the knees over. It’s a big ask, especially in a World that is fundamentally constructed in such a way as to ensure that ‘fear of loss’ of one’s ‘Possessions’, ‘Career’, ‘Business’ or ‘Social Standing’ looms large as an ever present motivator. The question that is rarely asked is what happens, eventually, if we don’t have the courage to exercise our choice, where does it all end? ‘Most ignorance is vincible ignorance, we don’t know because we don’t want to know. Willful ignorance (vincible ignorance) is a bad faith decision to avoid becoming informed about something so as to avoid having to make undesirable decisions that such information might prompt.’ Aldous Huxley
3) Facts Are Stubborn Things ‘Consider Human eyes. They are embedded in pairs within a flat surface, yet their owners cannot simultaneously see to both their Left or Right….. Being thus incapable of seeing in the round, even the daily happenings of Life in their own Society, it is perhaps not surprising that Human’s should get so excited about certain onesided aspects of their limited view of reality.’ Soseki Natsume’s ‘Cat’. It is often tempting to believe, when one listens to the hype emanating from certain sectors of ‘The Left’, in particular the ‘Renewable Energy’ proponents, the Permaculturists and the Alternative Life-style adherents, that Environmentally, things are on the improve, and that large numbers of people are ‘seeing the light’ and making the necessary changes in their lives in order to bring about a more ‘sustainable’ future. The evidence presented is mostly anecdotal, personal experience that is based primarily on hope and shored up by an excitement over certain one sided aspects of a limited view of reality. When it comes to the Environment and Sustainable Futures, one fact stands above all others as a realistic measure of precisely how the Human Species is handling the unfolding Environmental Crisis, and that is, whether Fossil Fueled (FF) Energy use is increasing or decreasing, and therefore, whether CO2 emissions are increasing or decreasing. The facts are clear. In it’s latest (2012) ‘State of the Climate Report’, Australia’s CSIRO unequivocally states that Energy Generation (and therefore use) in Australia continues to grow: ‘Energy generation continues to climb and is dominated by fossil fuels, suggesting emissions will grow for some time yet.’ And, as a consequence: ‘Fossil-fuel CO2 emissions increased from 2000 to 2010 at more than 3 per cent per year. The growth from 2009-2010 was 5.9 per cent, reversing a small decline of 1.2 per cent the previous year related to the global financial crisis. Observations of total CO2 emissions are tracking along the higher end of expected emissions.’ These predictions remain in line with the International Energy Agencies 2006 forecast:
‘On current energy trends, carbon-dioxide emissions will accelerate. Global energy-related carbon-dioxide (CO2) emissions increase by 55% between 2004 and 2030, or 1.7% per year, in the Reference Scenario. They reach 40 Gigatonnes in 2030, an increase of 14 Gt over the 2004 level. Power generation contributes half of the increase in global emissions over the projection period. Coal overtook oil in 2003 as the leading contributor to global energyrelated CO2 emissions and consolidates this position through to 2030.’ The statements of the Electricity Generation Companies support these facts. In his 2007 Submission to the ‘Owen Inquiry into Electricity Supply in New South Wales, the Chief Executive and Managing Director of Macquarie Generation, G V Every-Burns, had this to say: ‘This review is timely because demand is growing. National Electricity Market peak demand has grown by almost 4,300 MW or 15% in the five years to mid 2007 with annual growth averaging 2.5% in winter and 3% in summer. Total demand in June 2007 met a new peak of 13,343 MW, higher than the previous peak in the summer of 2006.’ And: ‘Customer demand has grown consistently over recent decades. Macquarie Generation can see no reason for assuming a major shift in this trend over the foreseeable future. While there are moves to make customers more aware of prices, particularly at peak times, economic growth will continue to drive increases in total energy consumption.’ And: ‘Peak demand and average demand continue to grow steadily every year in New South Wales – around 2.5% and 2% or 275 MW and 215 MW respectively. Macquarie Generation anticipates that this remarkably consistent pattern will continue through the next decade.’ The following graph taken from Macquarie Generations submission tells the story. (Note: ‘NEM’ = ‘National Electricity Market’.)
Given the patently clear ‘enthusiasm’ expressed in Macquarie Generations statements over the massive growth of Fossil Fueled Energy / Electricity Consumption, it comes as no surprise to discover that Macquarie Generation is a ‘Corporate Member’ of the ‘Clean Energy Council’. Why no surprise? In the next section of this article, I’ll be delving into the ‘make-up’ of the ‘Clean Energy Council’, its Board Members, Corporate Members, Sponsoring Members and Associate Members, as well as its ‘Vision’. It is here that we will uncover just why it is that when faced with undisputable facts in relation to massive Environmental Destruction the Small Businesses involved in the Solar Industry, do nothing more than align themselves with the very people whose only interest is in maintaining the status quo until the time is right for them to ‘manage the transition’ of Corporate Greed, from Fossil Fuels, to so called ‘Renewables’. These positions have nothing to do with minimizing Energy Consumption or environmental awareness, instead, they have everything to do with maximizing energy consumption and thus establishing, ever increasing profitability. As a consequence, the solar industry is either failing dismally in what it claims to be its ‘Traditional Environmental Ground’, or succeeding exponentially in its attempts to extract whatever profits it can, before the big boys take over.
4) The Galley of The Ship of Fools ‘An action can be regarded as irrational if it is ostensibly a means towards an end, such that this means leads to an end it purports to avoid.’ R D Laing – ‘The Obvious’ The ‘Clean Energy Council’ is the Peak Body representing Australia’s clean energy and energy efficiency industries. It is charged with the responsibility of ‘accrediting’ (for a A$110 Provisional / A$880 Full Accreditation Fee) Solar Installers, both Off Grid and Grid Connect and Wind Power Installers. It also operates a National Listing of ‘approved’ and ‘certified’ renewable energy devices like Inverters and Photovoltaic Solar Panels, and is an advisory body to both Government and the Private Sector in relation to ‘Clean Energy’. It retains the right, in line with Government regulation covering Renewable Energy Certificates / Rebates and Electricity Company Feed In Tariff Contracts, to levy not only the initial ‘Provisional’ and ‘Full’ Accreditation Fees, but also a ‘re-accreditation’ fee of $880 every two years on already ‘accredited’ Solar Installers. This ensures that the only way an installer can remain in business, is if they continue to agree to pay the required fees. The ‘Clean Energy Council’ is a ‘Not For Profit’ Incorporated Association (with considerable taxation benefits) and has a ‘Board’, ‘Corporate Membership’ and ‘Sponsoring Membership’ made up from the elite of the Energy Sector. This includes, primarily, Executives and Corporations with a long history and considerable connections within the Fossil Fuelled Industries. Membership in the CEC is offered on a three-tiered level, a ‘power hierarchy’ that is based on how big your membership fee is and therefore, how much influence you can falsely buy. The Revenue of the CEC is made up as follows:* ‘Sponsoring Membership’ – A$832,150 (14.1%) ‘Corporate Membership’ – A$1,274,130 (21.6%) ‘Associate Membership’ – A$639,540 (10.8%) ‘Emerging Technologies Membership’ – A$6,050 (0.1%) ‘Network Membership’ – A$177,650 (3%) ‘Installer Accreditation’ – A$2,970,000 (50.4%) Total – A$5,899,520
The CEC also offers a Membership Category listed as ‘Supporter’ (A$11,000), but doesn’t list who these members are, (presumably because there are none) which therefore makes it impossible to calculate how much they ‘contribute’ (if they exist) from this category. As noted in the figures above, the CEC charges A$110 for the ‘Provisional Accreditation’ of Solar Installers and then an A$880 ‘Full Accreditation’ fee that is ‘Renewable’ every two years. With over 3,000 currently Accredited Solar Installers in Australia, the CEC has collected at least an initial A$2,970,000 and will collect a further A$2,640,000 every two years. Not surprisingly, whilst these installers provide by far the largest amount of revenue to the CEC, (just over 50%) they have the least amount of ‘influence’ when it comes to directing CEC Policy, as we shall soon discover. (*Note: These figures do not appear on the CEC Web Site ((for obvious reasons)). They have been calculated from various pieces of information contained on the CEC Web Site).
‘Sponsoring Membership’ (Top Level) – Membership in this exclusive club will set you back A$48,950.00 The CEC don’t reveal whether this is a once off Membership Fee or an Annual Fee. One of the ‘benefits’ bestowed upon Members in this category, is a seat at ‘The Power Table’, described by the CEC, as follows: Participation in the Policy & Advocacy Advisory Committee This is the main body that sets CEC policy under delegation from the Board. It is made up of Sponsoring members and the Chairperson of each CEC Directorate. ‘Corporate Membership’ (Second Level) – Membership in this category will set you back A$12,870.00 One of the benefits to you will be: Seats on up to two CEC Directorates. It is important to note here, that only these two top levels of the hierarchy have any direct influence over CEC Policy and Direction. ‘Associate Membership’ (Third Level) – Things are starting to thin out, not surprising given that you can only afford to shell out A$3,135.00 The ‘benefits’ in terms of influence, have become nonexistent.
Access to the members area of the CEC website which includes current and archived copies of reports and research. Member-only communications such as newsletters, updates, media releases and in-depth daily media wrapups. Discounted member rates for all CEC events including national conferences workshops and member mixers Invitations to member-only briefings and industry updates Use of CEC member logo on marketing material (as per CEC guidelines) Discounted rates for advertising on the CEC website, including the careers page Discounted member subscription to the CEC media monitoring service Two Annual General Meeting votes. But, as an Associate Member, you feel all warm and fuzzy at the thought of being ‘so included’, don’t you? If you knew who the real power brokers were and how little influence you have either as an Associate Member, Network Member or a Solar Installer, would you change your mind? Let’s find out……… Precisely who are the CEC’s ‘Sponsoring and Corporate Members’? Here are just a few, along with their ‘CEC’ Web Site Blurbs, and some commentary from me, in Blue. Acciona Energy - is a world leader in the renewables sector. The company has taken on the mission of demonstrating the technical and economic viability of a new energy model based on criteria of sustainability. It focuses its activities on wind power, in which it is the largest developer and constructor of wind-parks in the world. It is also present in other electric power generation technologies based on renewable energy sources - solar thermal, photovoltaic, and biomass - and the manufacture of wind turbines and the
production and marketing of bio-fuels. It also has cogeneration assets. Sounds wonderfully comforting, doesn’t it? What Acciona don’t tell us, is that they are one of the biggest construction companies in Spain, building Public Infrastructure like roads and bridges, for cars. In line with this strategy, they are a major player in the ‘BioEthanol’ and ‘Bio-Diesel’ markets, ensuring that our ‘love affair’ with one of the most destructive status symbols ever created, continues and that massive amounts of food producing farmland can increasingly be chewed up to produce Automobile fuel. It is no surprise then, to find that the Board of Acciona, contains such luminaries as the Chairman and Managing Director of MercedesBenz Spain, a man who also sits on the Board of Iberia-Aviaco, an Aircraft Passenger Carrier, as well as the Board of ‘Inditex’, the Worlds largest Fashion Designer, producing ‘High End Fashion Labels’ in ‘low cost’ manufacturing plants in Morocco and China. The Board of Acciona also contains the Vice Chair and CEO of Cobega S.A, Coca-Cola’s Spanish Bottling and Promotions Arm, an organization that is also responsible for the push of this ‘caffeine laced elixir’ into the ‘Developing’ West African market. I could go on, but with Company and Board Member credentials such as this, it is obvious just why Acciona were accepted as Members of the ‘Clean Energy Council’. AGL - The Australian Gas Light Company (AGL) is Australian's largest electricity and gas retail, transmission and distribution company. AGL retails gas and electricity in Australia, New Zealand and Chile. It just so happens, that the ‘Chair’ of the Board of the CEC, is none other than Michael Fraser, the current Managing Director and CEO of AGL Energy Limited. Here’s some blurb on Michael from the CEC Web Site: (Note how AGL is presented as a ‘Renewables Company’). Michael Fraser is Managing Director and Chief Executive Officer of AGL Energy Limited, Australia's largest integrated renewable energy company, a role he assumed in October 2007. Michael has more than 25 years energy industry experience including having established AGL as one of the country's largest energy retailers and led the rapid expansion of AGL's upstream energy interests in renewables, thermal power generation and upstream gas
exploration and development. Michael's experience includes having been a Director of Queensland Gas Company Limited (QGC), Chairman of Elgas Limited, Chairman of ActewAGL, Director of the Australian Gas Association, Director of the Energy Retailers Association of Australia, Chairman of the NEMMCo Participant's Advisory Committee and a Director of Uniting Care Ageing Board. He holds a Bachelor of Commerce degree from the University of New South Wales. He is a CPA and Fellow of the Taxation Institute of Australia. The ‘Uniting Care Ageing Board’ position is rather ironic, if Michael has his way, there will be no ‘ageing’ left to care for, but it demonstrates the lengths that some will go to in order to make themselves look ‘Human’. As CEO of AGL, Michael overseas the following Energy producing portfolio’s:
AGL’s 1700MW electricity generation portfolio includes: A 32.5% stake in the coal-fired Loy Yang Power Station (Vic) The Gas-fired peaking plant at Somerton The Torrens Island Power Station in SA, AGL’s largest Gas fired Power Station. AGL Hydro’s 11 generating schemes The Wattle Point Wind Farm Small-scale biomass, landfill and cogeneration projects Without doubt, this is an impressive list of Environmentally Friendly activities. I’ll be comparing the CEC’s (and therefore Michael’s) ‘Vision’ against the track record of AGL later in this article. It will hardly come as a surprise that there is a considerable lack of congruence. For the reader’s information, some of the other ‘Sponsoring Members’ (along with their blurbs) of the CEC include: BP Solar - BP is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. Energy Developments Limited - An international leader in
the provision of renewable, clean and low emission electricity from sources including landfill gas, waste coal mine gas, LNG and CNG. Hydro Tasmania - Hydro Tasmania is Australia's leading renewable energy business. We provide renewable energy to the national grid and trade energy and environmental products in the National Electricity Market. Hydro Tasmania Consulting provides energy and water solutions for hydropower and renewable energy, dams, catchment management, environment and power engineering in the Asia-Pacific region. Pacific Hydro Limited Pacific Hydro is one of the world's leading clean energy independent power producers. We have the vision, capability and commitment to bring clean energy projects and premium carbon abatement products and services to our customers across the globe. We currently have 1,934 megawatts (MW) of hydro power and wind farm projects at varying stages of development, construction and operation in Australia, Chile, Brazil, Fiji and the Philippines. TRUenergy - is one of Australia's largest integrated energy companies, providing gas and electricity to over 1.3 million household and business customers throughout the country. With a $5 billion portfolio of generation and retail assets, we are the third largest private energy business in Australia, having grown steadily since we entered the Australian energy market in 1995. And amongst the list of the CEC’s Corporate members, we find: Asea Brown Boveri (ABB), ABIGroup, AEG, ALSTOM, AFEX (Associated Foreign Exchange), Energy Australia, Baker & McKenzie Solicitors, The Australian Fedral Government Clean Energy Regulator, CSR Building Products, Downer EDI Engineering, ElectraNet, Energex, General Electric International, Horizon Power, KPMG Accountants, Leighton Building Contractors, LG Electronics Australia, Macquarie Generation, NHP Electrical Engineering Products, PowerCor, RetraVision Queensland, Rinnai Australia, Bosch Australia Pty Ltd, Siemens, Snowy Hydro, Sucrogen (formerly CSR Ltd), Sustainability Victoria, True Value Solar, UGL, and Wacker Chemicals Australia. I’ll leave you to your own conclusions regarding the ‘Environmental Credentials’ of most of these organizations.
To investigate them all, would be beyond the scope and length of this article, suffice to say, that sufficient evidence has already been presented to allow the reader to pursue his or her own independent research. The full list of Members partly funding the CEC can be found on the CEC Web Site, at: http://www.cleanenergycouncil.org.au/aboutus/membership/curren tmembers/sponsoring.html It makes fascinating reading, especially if, like me, you take the time to investigate the history of the Companies and the Board Members that run them. However, the Corporate Entities that stand out, in relation to my recent visit to New South Wales, and their involvement in the CEC, are the New South Wales State Government owned Macquarie Generation, the Privately operated Downer EDI Engineering Group, Leighton Contractors, and AGL, organizations to which we will now turn our attention. I’ll also be delving into the operations of the ‘Giants’ behind these organizations, those involved in the ‘Hunter Valley Coal Chain Coordinator’ (HVCCC), Rio-Tinto, Xstrata, Anglo Coal and BHP Billiton. Woahhhh! Hold on, what? Are these the companies that are supplying the Coal to Macquarie Generation, with the engineering help of the Downer EDI Engineering Group? ‘YES’. And both Macquarie Generation and Downer EDI get to buy a seat at the Power Table of the ‘Clean Energy Council’? ‘YES’ And every single Solar Installer is paying through the nose in order to fund this sham?
‘YES’. Will I ever wake up and do something about this. ‘Probably Not’.
5) How Green Was My (Hunter) Valley?
Macquarie Generations agenda hardly needs revisiting. Its position is firmly spelt out earlier in this article. However, as per the above dialogue, there is much more to Macquarie Generations story than meets the eye. Finding the information that connects the dots between ‘Corporate Connections’ is not difficult, the majority of Corporations and their Board of Directors (executive or non-executive) are brazenly open about both their current and past positions, perhaps a stance that is indicative of the contempt with which they hold the general public, those of the ‘great unwashed’ who rarely ask the pertinent questions. But once one begins to unravel these connections, one finds that they simply go on forever. You pull on one thread, like that of a woolen jumper, and you find yourself pulling until you end up sitting amidst a ravel of knotted thread. Despite this, I’ll attempt to demonstrate, using the examples of Macquarie Generation, the Downer EDI Group, Leighton Contractors and Hunter Valley Coal Chain Coordinator (HVCCC), just how it is that these organizations manage to successfully secure ever more powerful positions within organizations like the Clean Energy Council. The Hunter Valley Coal Chain Coordinator (HVCCC) The Port of Newcastle is the largest Coal Export Port, in the World. The vast majority of Coal (90% - 100 Million Tonnes per annum) extracted from the Hunter Valley in New South Wales is sold overseas, primarily to Asian Countries who use it to produce electricity, which provides the energy for the manufacture of goods in ‘low wage’ manufacturing plants. These goods are then sold all over the World to rabid ‘Western Consumers’.
The Port of Newcastle has the capacity to load 143 Million Tonnes of Coal per annum, but in line with ravenous export demand, especially from China (read ravenous Western Consumer demand), it has ‘development approval’ to expand this capacity (currently underway) to 211 Million Tonnes per annum. By 2014, Coal exports will more than double to around 210 Million Tonnes per annum, and as a result, CO2 Emissions will continue their march upwards, nothing will change. The HVCCC, is the body charged with coordinating the massive infrastructure and logistics involved in getting the extracted coal both to port and domestic users. Its Board of Directors includes representatives from BHP Billiton, Xstrata, Anglo Coal, RioTinto, Pacific National, Queensland Rail, Freightliner, Newcastle Coal Infrastructure Group, Newcastle Port Corporation and the Australian Rail Track Corporation, amongst others. The ‘Independent’ Chairman of HVCCC, Mr Tony Haraldson am (yes that’s right, he was awarded an Order of Australia Medal in 2004 for ‘Services to the Coal Industry’), was previously the Executive Chairman of BHP Billiton Coal. He is a Non-Executive Director of HWE Mining, an Iron Ore mining contractor for BHP Billiton amongst others. HWE Mining is owned by ‘Leighton Contractors’, a company that you will find listed as a ‘Corporate Member’ of the ‘Clean Energy Council’. Leighton Contractors are owned by ‘Lend-Lease. At the time of writing, HWE Mining’s Subsidiaries in the Pilbarra region of Western Australia were being targeted for acquisition by BHP Billiton. Downer EDI / Leighton Cont. / Macquarie Generation / AGL As we have already discovered, Downer EDI are listed as a Corporate Member of the ‘Clean Energy Council’. This company is contracted to provide infrastructure and engineering services for the Hunter Valley Coal Mines, and its advertising billboards that litter the New England Highway, proclaim a myriad of mining ‘job
opportunities’. The obvious question here, is just why companies like Downer EDI, Macquarie Generation, Leighton Contractors and AGL, companies involved in such massive environmental destruction across a wide variety of sites around Australia, are not only allowed, but encouraged, through both ‘membership rights’ and ‘Board Positions’ to direct and or influence ‘Clean Energy Council’ Policy and Direction? We can perhaps plausibly find the answer to that question by investigating the background of some of the current and past positions of the Directors of these companies. We begin with the Downer EDI Group and Mr Phillip Garland. Mr Garland was the former CEO of Lend-Lease (the company that owns Leighton Contractors). Mr Garland also sits on the Board of ‘Australian Renewable Fuels Ltd’, yet another company involved in chewing up massive amounts of farmland for the production of automobile fuels. On the Australian Renewable Fuels Board, Mr Garland sits alongside Ms Deborah Page who was a Non-Executive Director of Macquarie Generation, as well as Mr Michael Costello, former Managing Director of the ACTEW Corporation and Board Member of the ActewAGL Joint Venture Partnership. You’ll recall that Mr Michael Harris, the current Chair of the ‘Clean Energy Council’, is also the CEO of AGL. He was also past Chairman of ActewAGL. By now, the picture should be well and truly forming. Another ‘Independent’ Non-Executive Director of the Downer EDI Group, is Mr Lucio Di Bartolomeo. Mr Bartolomeo is currently the Chair of Macquarie Generation, and a Director of the Australian Rail Track Corporation. He was also, previously, the Managing Director of what is now Pacific National. As already noted, these three organizations are heavily involved in the Hunter Valley Coal Mining Project.
6) HMAS Co-option The Board of the ‘Clean Energy Council’, the people ‘charged’ with the ultimate responsibility for setting the Policy and Direction of the organization, is made up of the following individuals. Michael Fraser (Chair) - CEO of AGL, former Chairman of ActewAGL, former Director of Queensland Gas Company Limited (QGC), former Chairman of Elgas Limited, former Director of the Australian Gas Association, former Director of the Energy Retailers Association of Australia. Roy Adair – CEO of Hydro Tasmania, former MD of Yallourn Energy, former Chief Operating Officer of Pacific Hydro, former Director of the Electrical Supply Association of Australia. Greg Pritchard – Managing Director, Energy Developments Ltd, former Chief Financial Officer QCT Resources (a Coal mining / production company eventually acquired by BHP Billiton), former Senior Executive at KPMG, who are Corporate Members of the CEC. Jeremy Schultz (Treasurer) – Partner of the Adelaide based Law Firm Finlayson’s Lawyers, former Director of ‘AusWind’. Martin Jones (Deputy Chair) – General Manager Government Relations CSR Ltd. Former CEO of the Plastics and Chemical Industries Association, Ken McAlpine – Director of Policy and Government Relations, Vestas Wind Systems, former Chief of Staff to the Victorian Minister for Energy & Resources (Theo Theophanous). Note, there is an interesting letter floating around the Internet on Ken’s potential ‘conflict of interest’ re his new position at ‘VESTAS’. Roger Meads – Managing Director of Conergy Pty Ltd., former manager Solaheart Pty Ltd. Tony Stocken – Regional Director BP Solar Australasia. Lane Crockett – General Manager Australia, Pacific Hydro, previously worked in utilities regulation, managed the performance of electricity and gas operating and maintenance alliance contracts, and led engineering, procurement and construction (EPC) projects in the oil and gas, and petrochemical industries.
John Susa - Senior Director and Country Manager Australia & New Zealand, Trina Solar Aust. Former Senior Manager Siemens APAC. Stephen Cook – Managing Director, Stephen Cook Solar & Electrical Services. Note: Stephen is most likely the ‘token’ Solar Installer Board Member who will unfortunately, be swamped and silenced by the ultra powerful corporate and government interests listed above. It is more than telling, that 7 of the 11 above Board positions belong to 7 of the ‘Top Level Sponsoring Membership’ category Companies, those with the most power and influence when it comes to directing CEC Policy and Direction, and that another 3 of these board positions are connected with organizations that hold Corporate Membership with the CEC, also retaining influence over policy and direction. Mr Stephen Cook, how long will you last???? Meanwhile, the 3,000 Solar Installers around Australia, who are funding this corporate juggernaut, are being bled dry. The strategy here is clear. Corporate Power Bases like the CEC love to use someone else’s money in the establishment of their own long term power, profitability and viability. After all, why shell out the dosh yourself and risk losing it, when there are a myriad of suckers out there willing to give you their cash to fund their own eventual demise……… Especially, when you eventually gain complete control of the Industry and end up making all the REAL money. In the next section, we’ll be looking at the Corporate Doublespeak that’s used, to reel in the suckers.
7) Waking Up To Reality ‘Occasionally words must serve to veil the facts. But this must happen in such a way that no-one becomes aware of it; or, if it should be noticed, excuses must be at hand, to be produced immediately.’ Machiavelli – ‘The Prince’ The following is an excerpt from the ‘Clean Energy Councils’ (CEC’S) web site. This is a wonderful example of what we used to call in the Corporate World, ‘Motherhood Statements’. If you’ve ever watched an episode of ‘Yes Minister’, you’ll know exactly what I mean. So, let’s put on our Corporate Double Speak glasses and, following all of the above seriousness, have some fun! My comments are in blue.
Our vision The Clean Energy Council (CEC) is the peak body representing Australia’s clean energy and energy efficiency industries. The high level principles for Clean Energy Council policy are: To accelerate the development and deployment of renewable energy and energy efficiency technology (clean energy) and to ensure at least 20% of Australia’s electricity is generated by renewable energy by 2020. WE’LL be ensuring that WE keep control of the accelerator. The last thing we want is for the masses to wake up and realize that they could control their own energy future at far less cost and at the expense of our profit. WE’LL decide what percentage of renewable energy will be introduced when and where, and these decisions will be taken in line with our profit and market share targets. Contributes toward a level playing field for clean energy technology relative to fossil fuel based energy generation sources, including through a price on carbon (and other complementary measures). WE’LL be ensuring that the current fossil fuelled (un) level playing field remains in tact for as long as it takes to extract the maximum amount of profit from it. That particular (un) level playing field is currently being bled dry, which is why we here at
the CEC, are busy constructing a new (un) level playing field, specifically designed for the renewable energy sector. The gradient is currently being defined, but will be similar to the (un) level playing that exists for the CEC’s Hierarchical Membership Structure. Achieve long term policy stability to underpin investment in clean energy technology, based on national consistency and minimal administrative burden. We’d like to make a shit load of money with minimal government intervention. Support the development and deployment of all clean energy technologies, recognizing their unique barriers, circumstances and stages of development. WE know what the unique barriers and stages of development are, and they are in line with what we want them to be. WE will decide when the unique barriers can be lifted and when the next stage of development can commence, and these decisions will be made in line with our profitability targets. Reduce the cost and improve the efficiency of clean energy technologies. The Profit Margins in renewable energy are not yet substantial enough for us. Critical Mass and Production Efficiencies have not yet been realized and therefore, we’d like to ensure that before we take absolute control of this sector, costs are cut, fat is trimmed, people are expended, Government to Corporate Welfare is introduced and Profit Margins are sufficient enough for us to pay our executives what they are worth and our politicians what they can be bought for. Ensure the safety and reliability of clean energy technology. Our Board and Corporate Members have spent years perfecting the safety and reliability of the Petrochemical, Gas and Coal Energy Sectors. Trust us, we’ll ensure that nothing gets introduced unless it meets the rigorous standards you’ve come to expect or have been stupid enough to swallow.
The CEC advocates policy development on behalf of its members at the federal and state government level and promotes understanding of the industry and its potential through forums such as industry events, forums, conferences, newsletters and publications. Our ‘energy efficiency message’ is crucial, which is why we are driving and flying all over the country to spread the word. We’re also producing large quantities of glossy marketing publications, inviting thousands of relevant ‘Industry Players’ and ‘Pollies’
to drive and fly in for conferences, industry events and forums. To offset the CO2 emissions produced by all this activity, our new (un) level playing field is being constructed with real grass. The following outlines the CEC definition of clean energy. Technologies outside of these definitions will not be directly represented by the CEC. Indirect representation is another matter, especially given the fact that the majority of the CEC Board, Sponsoring and Corporate Members are all involved in flogging anything but ‘Clean Energy’. The CEC represents renewable energy and energy efficiency. These are defined as follows: Renewable Energy All sources of renewable energy including hydro, solar, wind, marine, geothermal and bioenergy. All technologies and projects should comply with relevant laws and regulations in that jurisdiction. Our government mates have provided us with endless amounts of legislation, all designed to ensure that our corporate entities are the only ones who can deliver your renewable energy products and services in a safe, secure and reliable way. Why chance getting ripped off by an ‘un-accredited’ Supplier or Installer? Trust us, we won’t rip you off……. Other low emission sources with a very low carbon footprint such as: Fuel cell technology , High efficiency cogeneration/trigeneration using natural gas Hydrogen and storage technology , Waste coal mine gas. We don’t agree with Coal Mining, no seriously we don’t, hands on our hearts, scouts honor, really, seriously, we don’t. Our only concern is making sure we can take products like Waste Coal Mine Gas and flog it as a renewable energy, something with a low carbon footprint, unlike Coal Mining……. The CEC will not support fossil fuel based energy generation including: Traditional coal fired electricity generation, Large scale, 100% gas fired generation (including from coal seam methane gas), Carbon capture and storage. Honestly, seriously, we don’t believe in Coal Mining, we mean it, we’re serious, we wouldn’t lie. The CEC will not support nuclear generation technology given it is broadly considered to be non-renewable and is currently prohibited in Australia.
We’re principled, seriously, we are…
Energy Efficiency All demand side (behind the electricity meter) activities and technologies which increase the efficiency and reduce (per unit of activity) the consumption of electricity We’re serious, look at how the myriad of other organizations involved in energy efficiency education have succeeded over the past 10 years in reducing electricity consumption. (Sorry what, it’s going up? Shit, errr ) We’ll be taking a totally different approach when it comes to reducing electricity consumption. We’ll be employing a team of consultants to conduct demand side vector matrix equations, utilizing the very latest in domestic process improvement software and per unit of activity monitoring and a whole suite of initiatives designed to provide a real boost when it comes to minimizing behind the meter consumption. You’ll understand just how sophisticated a task that is, if you’ve ever tried to do all that, in behind an electricity meter. Technology or activities that improve the efficiency of renewable electricity generation (as defined above). As defined above……
8) Conclusion (Sub-titled – Congratulations, if you’ve read this far, you belong to the less than 5% of people who might actually care about what’s going on around you). In the introduction to this article, it was suggested that ‘greed’ is being used by government and corporate power, in such a way as to co-opt various solar industry players into the system until such time as the critical mass and production efficiencies reach a point of maximum profitability, a point at which, the big players will ultimately step in and take control of the solar industry market. As suggested, this ‘greed’ is being fostered through the twin strategies of government rebates and installer accreditation schemes. Something that we didn’t investigate fully in this article, is how this very same ‘greed’ factor, is being used by the major energy companies, facilitated by government legislation, at an individual consumer level. Large numbers of consumers are signing up for ‘Grid Connect’ Solar Systems, under the deluded belief that they, for a change, will be able to turn the tables on the energy companies, and make some money. What we find however is that their greed, when combined with their gullibility, is merely being exploited. One of the fundamental issues rarely explored by consumers in their almost manic desire for ‘a deal’, is precisely how corporations, these days, make their profits. Unlike the almost ‘antiquated’ Small Scale Solar Owner Operators, large corporate entities do not only make their profits from ‘what’ they produce and sell, they also make their money in short term investment portfolios, funded from the difference between the flow of money between their ‘debtors’ and ‘creditors’. Telstra, for example, long ago worked this out. If you are a ‘debtor’ to Telstra, they require that you pay your bill within 30 days, but if you are a creditor, you will be contractually required to accept their 120 day payment terms. The 90 day difference will help them to increase their profitability, through the investment of millions, if not billions of dollars on short term money markets.
Many ‘bemused consumers’ who have jumped on board the ‘grid connect’ rort, are questioning why, suddenly, they no longer receive a bill from their energy company every 3 months, especially during the summer months. There’s a simple answer. If you and thousands of other ‘grid connect’ customers are producing more energy than you are using, the energy company could easily be ‘paying out’ millions of dollars. Why would they do this when they can simply hold off until the sun lowers in the sky and the tables are turned. In the meantime, the energy company gets to invest what it might owe you, on the short-term money market, whilst on-selling the electricity their thousands of Grid Connect customers have produced. The likelihood is, that when winter comes around, and you’re using more than you’re producing, you’ll be paying them, within 30 days. This is a strategy that is easily realized when customer critical mass has reached a certain point, and that critical mass gets conned by its own greed. Efficiency in business is everything. The big corporate boys, listed in this article above, fully understand that with 3,000 solar installers Australia wide, this industry is ‘highly inefficient’, and that the ‘critical mass’ and ‘productive efficiency’ of this market and industry has not yet been fully realized. The Clean Energy Council will assist them to change that. Through its mandate, with the convenient help of the Australian Federal Government, these big corporate players, who control the Clean Energy Council, now have access, through the ‘accreditation’ process of the 3,000 solar installers, to vital information. They can easily access, with the accreditation funds supplied willingly by the solar installers, the necessary information, via organizations like Dunn & Bradstreet, information like:
Where the solar installers are. How profitable they are. How much money they turn over. Who the directors of these companies are. Who their creditors and debtors are. Their credit ratings. How viable they are and, Whether they are worthwhile toying with.
These issues could be explored in much more detail, however, one factor that keeps on rearing its ugly head, is precisely how ‘greed’ is used by the ‘greedy’ to exploit the ‘gullible greedy’.
Human motivation is, after all, not that hard to work out and exploit, the big corporate boys have had years of experience doing it. If we wish to change this, the first step is to recognize the game, the second, is to refuse to play it. But as suggested in part two of this article, this requires considerable courage. If we choose either willingly or ignorantly to play the game presented to us, our cry as the eventual victim will become nothing more than the shallowness of the game itself.