By Jo Nova

The real cost of back up

Imagine building and maintaining a perfectly good gas plant and then having it sit around for five whole years “just in case”?

There’s been a wind drought in the last three months in Australia, which meant hydro power had been used more than expected to fill the gap. But wouldn’t you know it, it’s been dry spell for most of the last year in Tasmania too and the dams were getting low. So on June 6th, the Combined Cycle Gas plant at Tamar Valley was set up to run for the first time since 2019.

Back in 2016 the maintenance costs of the keeping the CCGT at Tamar Valley on “30 day” standby was $12 to $24 million a year, depending on who you asked. So the five year cost of gas backup is in the order of $100 million, but those costs will be slapped on the gas plant bill, when really they’re a weather dependent renewables cost. What we need is reliable energy, not random electricity. If energy companies were only paid for reliable dispatchable power, the wind and solar plants would have to build their own “back up […]