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Australian grid wars: MP says Queensland should cut off other states to make electricity cheaper

Posted By Jo Nova On August 20, 2019 @ 8:07 pm In Global Warming | 168 Comments

Guess which state, big business will be headed to next?

Brilliant! Let’s talk about a Quexit of the NEM. Nationals MP, Keith Pitt is suggesting that Queenslanders could cut their power bills if Queensland stands alone and disconnects from the rest of the Australian National Grid. There are concerns from experts within the energy sector that this could result in blackouts in other states… (is there an “e” in electricity?).

Keith Pitt says these are Queensland assets paid by the Queensland people, owned by the Queensland people, but we can’t continue to prop up states that make silly decisions. He’s driven by one motivator, and that’s price for consumers.

Check out the AEMO data dashboard. On any given minute Queensland is probably sending electricity to most of the NEM.

 

 

 simon holmes à court
@simonahac

this is _the_ dumbest idea i’ve heard @keithjpittb since gina’s dad suggested using nuclear bombs for earthmoving. while you’re there, you may as well blow up the highways in and out of queensland — the oversupply of bananas would drive the costs down. for a time.

The Nationals haven’t decided if they will back this at the next state election. Send them a message.

Just asking the question changes the game

In the long run, it would be silly for Queensland to own large assets that could turn a profit but say “no thanks” and just blow off the excess. But if they seriously threatened to leave, suddenly contracts would be up for negotiation. Perhaps more importantly, an excess wouldn’t last for long if big business from NSW and Victoria moved to Qld to use that excess power. It could work out well for a lot of people.

For decades each state managed its own grid just fine. As I say in my speeches, to truly wreck a grid, it needs to be nationalized. Only a big groupthinky grid can be mismanaged by one sole mismanager. Not mentioning any names, Audrey Zibelman.

But let’s not forget, Queenslanders still need to cut off the RET next.

Electricity prices fell for 25 years in Australia, then renewables came…

Australian electricity prices, NEM, graph.

The NEM formed in 1998. For most of the first 15 years of the NEM, prices stayed around $30/MWh.

 

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