Social Distancing in Victorian Melbourne…

At the time of writing Victorians, like most of Australia, are living under a Covid19 “stay at home and practise social distancing” regime in attempt to “flatten the curve” and reduce the spread of this contagion. I have been working from home for 3 weeks, only going out for essential food shopping and a daily walk for exercise (since my gym is closed). This perambulation has revealed some lesser-seen aspects of Melbourne (apart from the empty streets), including the way the modern city’s 19th century founders went about their approach to urban design – including some examples of built-in social distancing.

The first example is the number of public parks and gardens close to the CBD that were established in the 1800s, and which have managed to survive the onslaught of developers. As we know, public parks, with their trees and green spaces act as the lungs of the city, and provide a place to exercise, relax and get some fresh air. So we need these facilities more than ever in times like these. (Strange why the Victorian Government still insists in allowing vehicles to use the culturally and historically significant Yarra Park as a public car park on so many days, with all the horticultural and environmental damage that this causes…)

Second, the decision to incorporate lane-ways into the grid design of the CBD, as well as throughout the 19th century expansion of the inner city suburbs. While their design was mainly pragmatic (ease of access for night carts, storm drainage), the result is that in densely-built areas such as Richmond, Carlton, East Melbourne, Fitzroy and Collingwood, lane-ways mean even terraced houses can have ample space between them and the next block, allowing for better ventilation, natural light and reduced risk of disease. (For an example of the lane-ways importance to Melbourne’s character and psyche, check out Daniel Crooks’ video, “An Embroidery of Voids”.)

Third, the decision not to build right up to the urban banks of the Yarra River (and the straightening and leveling of the river itself) has left them accessible to the public, both as a means of cycling and walking to/from work, and for recreational purposes. In many cities, riverfront access has largely been blocked off as adjacent land has been appropriated for private, commercial and industrial use.

At a time like this, I truly appreciate the foresight of Melbourne’s Victorian town planners – I just hope we can continue to enjoy their legacy in the coming weeks and months!

Next week: #Rona19 – beyond the memes

 

Sola.io – changing the way renewable energy is financed

Late last year, I had the privilege to be one of the judges for the PitchX competition for start-ups. The overall winner was Sola, a new investment platform to fund solar power using a virtual power plant structure to bring together investors and producers, who might not otherwise have access to the financial and production benefits of this renewable energy resource.

I had the opportunity to catch up with Alan Hunter, Founding Team member of Sola while he was in Melbourne earlier this month. He was busy in the middle of a series of investor meetings and finalising arrangements for their energy retailing licensing.

Prior to Sola, Alan had established a fleet company that leased cars to Uber drivers. Recognising that some immigrants lacked relevant qualifications for advertised jobs, but lacked the finance to buy a car, the business joined the dots and enabled many people with a driver’s license to secure employment. It told him a lot about about helping those less fortunate by building a business designed to remove inequalities and lower barriers to entry.

With that experience, an interest in renewable energy, and a desire to help consumers reduce their power bills Sola was launched. Starting out as CEC-approved Solar Retailer, Sola offers consumers a subscription service to electricity (at a cheaper rate than users pay today).

Sola is now planning to offer the same subscription service with a solar system, for a cheaper monthly payment. It is able to achieve this though the development of an innovative investment and infrastructure platform, that will serve three main types of clients:

1. Home-owners who want to install solar energy, reduce their own power bills, and even generate additional benefits as rebates or credits from feed-in tariffs

2. Retail investors, who may not have access to solar energy (renters, apartment residents, or those in dwellings ill-placed for panels)

3. Wholesale investors and self-managed superannuation funds looking for an alternative fixed income asset

In short, Sola underwrites the cost of panel installation on consumers’ homes. In return, Sola acquires 100% of the energy generated, and the customer subscribes to Sola for their monthly usage. Consumers become subscription members of Sola’s network, via the latter’s retailer license.

For retail investors, Sola will present them with an opportunity to access fractional ownership of a virtual power plant, for as little as $100. These investors then receive a dividend from the energy sales generated by the network.

For wholesale investors, and for a larger stake, they will be part of a closed end capped fund, which will generate a dividend from the energy sales. Sola has an energy off-take entitlement over the panels, and over time, panels which are replaced may still be sold into secondary markets, such as in developing countries, if they have a remaining useful life.

Some of the benefits of this structure include a more equitable arrangement for access to, ownership, and distribution of solar energy assets. It also removes the need for unsecured lending to finance panels and systems which may soon become obsolete. Plus, it enables people who might not have direct access to solar panels to benefit from this asset.

The complex issue of Federal and State rebates came up in our discussion. According to Alan, the former are useful in supporting the roll-out of Sola’s virtual power plant model, and in accessing the carbon credit marketplace via the Small-scale Technology Certificates (STC). Whereas, State rebates are better for end-users, who can engage Sola direct to install their panels, and then join the Sola retail network.

Then there is the issue of inverters, and batteries. It’s generally the former that are rendered obsolete before the panels, but the costs mean that customers tend to end up replacing the whole system. And the latter will not become economic until purchase costs reduce, and feed-in tariffs are phased out.

Finally, Alan wanted to make sure he got this point across – Sola will shortly be launching campaigns in seven locations, to sign-up 180-230 homes, in areas impacted by bush fires. The aim is to give participants a 35-40% saving on their energy bills, as well as establishing the first phase of the virtual power plant network.

Next week: Australia’s Blockchain Roadmap

 

 

 

 

 

Signing off for Saturnalia

According to a Gallup Report, in 2018 the world was “sadder and angrier than ever. If recent global events are anything to go by, 2019 will easily top that. And as I write, much of south east Australia is on fire (the bushfire season having started back in early August), only adding to the sense of rage. I can’t recall an angrier year, maybe not since the 1970s.

Image of Scott Walker scanned from the NME Annual for 1968

Reasons to be angry? World politics, climate change, fake news, growing nationalism, economic stagnation, and sectarian intolerance. Evidence of anger? Brexit, Impeachment, Hong Kong, France, Chile, Iran, India, Iraq, Adani, Extinction Rebellion, #MeToo, etc.

Meanwhile, considered academic debate has been reduced to very public slanging matches. Even popular music seems shoutier than ever, and no action movie is considered complete without gratuitous violence, hyperbolic pyrotechnics and pounding soundtracks.

So much noise, so much hot air (verbal and atmospheric) and so much sheer rage, not always easy to articulate or understand – and not easy to predict how that will translate at the ballot box, given the election results in Australia and the UK. Politicians of all persuasions are increasingly seen as being a key cause for voter anger, but in both cases, continuity was deemed preferable to change.

As we wind down for the holidays, it’s frustrating to think that the “season of goodwill” is limited to just a few weeks of the year. I’m not suggesting 12-month-long Black Friday Sales. Rather, can we find it in ourselves to be more civil to each other throughout the year, even if we disagree on certain things? In particular, I’m thinking of the growing evidence of sectarian strife. Established religions may condemn to hell (or even death) anyone who disagrees with their belief systems, but in a democratic, secular and pluralist society, the right to “freedom of religion” also means everyone is entitled to “freedom from religion”.

In light of that, I’d like to wish all my readers a safe and peaceful Saturnalia. Normal service will be resumed in the New Year.

 

 

Climate Change and Personal Choices

Melbourne has recently seen a number of protest events linked to the Extinction Rebellion. At the same time, the pro-life lobby were conducting their annual protest against the Victorian Government’s Abortion Law.

It’s quite ironic to see some people advocating for a response to climate change, while others are effectively campaigning for population growth. Yet we also understand that the current global rate of population growth is probably unsustainable; and increased human activity is a major contributing factor to greenhouse gases.

An article from a couple of years ago suggested that having fewer children and living car free were two of the most effective individual choices we can make to reducing our carbon footprint. Of course, some argued that such individual choices were “nonsense”, and would likely undermine the effort for political action on climate change.

For myself, I don’t have children (and don’t plan to), and I don’t own a car (although I sometimes use ride share services). I don’t have an exclusively plant-based diet, although I tend to eat less meat than I used to (side note – if we were meant to be vegan, why do honey and yoghurt taste so good, especially together?). I do travel overseas fairly regularly, but if household water and energy consumption is anything to go by, I think I am well below average.

I don’t think that making appropriate and voluntary individual choices to reduce our carbon footprint negates the responsibility of governments to implement collective change. Nor should individual decisions be seen to be undermining political action on abating the effects of global warming. But policy makers and climate activists alike should recognise and acknowledge that some people are willing (and yes, in some cases, able) to make individual choices that contribute to reducing greenhouse gases.

As for the pro-life lobby, I wonder what they made of the film “Capernaum”? In it, a child sues his parents for the “crime” of giving him life. What astonishes him is their general neglect and disregard (bordering on abuse) for him and his siblings. He can’t understand why any responsible adult would willingly and knowingly expose their children to the life they lead. There is an implication that the parents see their offspring as economic bargaining chips, and of course, there are religious, societal and cultural “norms” that underpin many of the parents’ decisions. With so many unwanted and unloved children brought into the world, and sometimes to parents who may end up mistreating them or worse, I guess the thing that frustrates me with the pro-lifers is their apparent unwillingness to accept that not everyone is fit or able to be parents. We need a license to get married or drive a car, but we don’t need a license to procreate…. Equally, not everyone chooses to be parents, and therefore pro-choice is not so much about the right to “murder” unborn children, it’s about the right to plan our lives and to ensure we are able to meet our personal obligations.

Next week: Notes from Auckland