Another socialist boom and bust in solar in Victoria

Behold, the Victorian Govt are proving yet again that Soviet-style electricity management can crush lives, hopes and wallets. The free market is never as cruel and destructive as one run on “good intentions” or the desire to win virtue-signaling fashion parades.

The invisible hand of the market was replaced with Daniel Andrews whimsy. This might work if he was smarter than the collective brains of 5 million people. Apparently Andrews assumes serfs people don’t understand the true value of solar panels and the benefits of creating jobs in China, so he has mandated glorious subsidies in the hope of getting nice weather one day, and the desperate punters took them up in droves. The industry boomed. But now they’ve temporarily halted the free gifts, orders have disappeared as the free market returns to accurately valuing solar installations. So the workers are being sacked. The rebates will come back again in July, so business-owners somehow need to get a different income stream for two months, survive the turmoil, and then the golden gravy will run again.

As per usual ABC policy, no free market voices were harmed, interviewed or asked to provide comment:

Victorian solar company reeling after popular rebate […]

Invisible costs of renewables: “Staggeringly high” $125b for US electricity consumers

A major new “nail in coffin” study shows the more renewables we force onto the market the more expensive electricity gets.

Everyday someone tells us renewables are cheap, but these estimates come from flawed “LCOE” method (at best) supposedly the lifetime cost, but without many indirect costs. Granted, it’s hard to figure out what the bill for renewable energy is. But what really matters to every man and his dog, is the cost effect on the whole system, not a cherry-slice comparison of a few sunny-windy hours a day which doesn’t take into account the effect that renewable energy has on the rest of the 24/7 electricity grid.

Greenstone, McDowell and Nath have analysed all 29 states in the US where there are laws demanding a certain percentage of energy be renewable. On average a 4% increase in renewables led to a price rise of 17% and the impost was wildly high compared to any remotely sensible cost-benefit analysis. Renewables are the car insurance bill that costs 3 times as much as your car. Any serious environmentalist would hate renewables.

Michael Shellenberger, Forbes

The cost to consumers has been staggeringly high: “All in all, seven […]

Solar Power at $70 is still twice the price of brown coal

More fake news: Miners are only switching to solar because they can’t get access to cheap coal fired power.

“Miners switch on to renewables”

A better headline would be: Renewable targets make electricity so expensive miners are forced to switch to renewables.

The money quote:

Emily Alford is a principal consultant at Oakley Greenwood … [she] told The Weekend Australian that solar generation cost about $200 a megawatt hour five years ago, and had dropped to about $70-$80 now.

Compare that to 53 year old Hazelwood coal power which was selling electricity for $30/MWh in it’s last month of operation. When brown coal stations set the price in Victoria they were winning bids at prices like $13/MWh.The cheapest electricity in the world comes from 30 year old brown coal plants.

The $70-$80 estimate is artificially low. Unreliable power makes the other baseload generators more expensive, adding $30/MWh to gas generators for example. Because the back up generators have to be there, not earning money while solar feeds in, they have to charge more to recoup those costs in a shorter working period. Doh. So add that cost to solar, not the gas.

Compare the real costs and weep: […]

Exodus: 10% of Venezuela has left the country

A nation struggling to get the lights on still:

Well that is a first! Lights in a city in #Venezuela are going crazy on and of and on repeat again. #SinLuz #SinAgua. Some people in Venezuela have now gone 210 hours without lights or either running water. pic.twitter.com/CETnHlNYAT

— Sotiri Dimpinoudis ❁‏ (@sotiridi) April 3, 2019

‘New York Times’ Journalist Describes An ‘Almost Unimaginable’ Crisis In Venezuela

New York Times journalist Nicholas Casey was in Maracaibo, Venezuela, in March when the country was hit by a six-day blackout… “By the fourth day of the power outage, that was when you started to hear shots getting fired in the street,” Casey says. “People were beginning to loot, and the store owners were coming out to defend their stores.”

The U.N. estimates that it’s upwards of 3 million people who have left. Now remember, this is a country of 30 million people. So we’re talking about 10 percent of the population that has gone.

A few weeks with intermittent power and the country is becoming uninhabitable.

When a government tries to print its way out of trouble by giving away “free” money it seems cheap but […]

Renewables stress: The daily battle just to keep the lights on in Australia

Who’s afraid of a cascading blackout?

Last year investment in unreliable and asynchronous generators doubled in Australia thanks to government decree. For some reason, adding another few gigawatts of iffy capricious infrastructure to a 50GW finely-tuned-system appears to put the whole national grid in a near constant state of emergency. The AEMO (our market operator) had to intervene in the South Australian market eight times in 2016/17, but last year they had to do it 101 times.

This warning comes from the Australian Energy Market Commission (AMEC) which makes the rules for the national grid. Why are they baring the dirty renewables laundry? Because the answer to the crisis is always bigger government and this is a reason to call for it.

Renewables stress the grid

Perry Williams, The Australian

Australia’s electricity grid is relying on emergency safety nets to keep the lights on, …

The deterioration of the strength of the electricity network — most pronounced in South Australia — is also spreading to southwest NSW, northwest Victoria and north Queensland, adding to wholesale costs incurred by users.

SA’s electricity system is increasingly operating under the direct intervention of the grid […]

Electric cars are perfect for socialists: Labor plan boosts Big-Gov, but worse for CO2, pollution, coal use, and grid

Labor’s electric car plan means higher emissions, more pollution, more coal use, and threatens the grid but it’s great for socialists.

Fantasy-land: Labor wants half of all new cars sales to be EV’s by 2030. That’s a radical change in a big country that loves its cars and drives great distances. Last year only 0.2% of new car purchases were EV’s. Our grid is already struggling, and extra charging cars would push it over the edge and may add something like $20b a year in extra network and generation costs.

This makes no sense on so many levels: in Australia EV’s are 80% fossil fuel powered and over their lifetime they cause more pollution than internal combustion engines.

Electric Vehicles produce more carbon emissions if the grid that charges them is powered by fossil fuels.

The results reveal that the energy consumption and greenhouse gas emissions of a battery electric vehicle production range from 92.4 to 94.3 GJ and 15.0 to 15.2 t CO2eq, which are about 50% higher than those of an internal combustion engine vehicle, 63.5 GJ and 10.0 t CO2eq. This substantial change can be mainly attributed to the production of traction batteries, the […]

Power collapses again in Venezuela

What a mess. The power is down again in more than half the country — coming and going. People are desperate for water. Schools, industry and state buildings are closed. The Russians have sent in troops. The US has told them to get out.

It’s easy to take civilization for granted — until you don’t have one.

Urgent: New disruption identified in #Venezuela 40 hours after onset of national power outage; 91% of country now offline reversing partial recovery; incident ongoing #SinLuz #Apagon #27Mar ⬇️https://t.co/7nhWVW9v7a pic.twitter.com/xA8ZRdmagc

— NetBlocks.org (@netblocks) March 27, 2019

Update: It has been 55 hours since the onset of nationwide power outages in #Venezuela; 69% of the country remains offline after a new drop in connectivity #SinLuz #Apagon #27Mar ⬇️https://t.co/7nhWVW9v7a pic.twitter.com/7trvLoLqjd

— NetBlocks.org (@netblocks) March 28, 2019

 

h/t to Rafe Champion, who links on Catallaxy to my post on how hard it is to restart a grid. And also to Lance’s comment which was so useful I added it as an update to that post and which is now starring on Catallaxy too . In case you missed his comment, and because it’s so apt, here it is again:

Lance predicted […]

“Market Bloodbath”: Too many new remote renewables projects means high losses

As Australia push-pumps “renewables” into remote locations some of their incomes are suddenly being cut because the losses (as they transmit across long lines) are higher than they expected. On March 8th the AEMO rerated many generators and this year it’s being called a bloodbath for wind and solar. Some of them, like AGL’s Silverton wind farm face losses of 20%.

It all revolves around something called Marginal Loss Factors, a value that is set by the AEMO each year for each generator. The rating is reduced by transmission losses over distance and also by “congestion” from other renewables which are popping up in the same remote locations far from the cities and industries that need the electricity they make. This sudden loss of expected income threatens new wind and solar projects (as it should — hello market signal!) Sometimes the loss factors are hard to predict years in advance which makes it difficult to also predict whether a project will return a profit (even despite the guaranteed subsidies).

Another renewable inefficiency strikes — “marginal loss factors”

Generators are paid according to the electricity that arrives rather than what they produce at the plant. (Seems fair). This is called the […]

Venezuela’s melt down: Blackout day six and the grid struggles to reboot

Venezuela has 31 million people and has had almost no electricity for six days. There are estimates on Twitter (#sinluz) suggesting that about half is back up as I write, but the stories of chaos, death and disaster are surely just starting to come out as communication lines open. The water coming out of taps is black, possibly contaminated with oil (are those shots fake?), the Pepsi plant was stripped bare, see the video. People are desperate: Shop owners are apparently shooting looters. At least one tweeter claims people are eating zoo animals. One baker took his own life after his shop was overrun and everything was stolen. It may not be over yet either — the grid recovered almost as far a few days ago, then collapsed again. Indeed, today explosions have been reported at an electrical substation at La Tiama, as well as other substations. What a debacle, a disaster. Babies in hospitals are being ventilated by hand. Many life support systems are off.

Netblocks tracks connectivity in Venezuala, which seems to be a reasonable proxy for power, and clearly electricity is being rebuilt partially, then collapsing again.

Update: 119 hours after the onset of nationwide […]

The cost of one days electricity on the Australian grid is three times (or 50 times) more than it was in 2012

There were no headlines but $300 million dollars was burned at the stake of renewables

Just another day on the exciting Australian NEM.

Friday week ago we had another price spike hitting the $14,500 mandated price cap. On that day South Australians and Victorians paid a blistering $61 million and $210 million respectively. That’s the cost of a single day’s electricity on what was a hot day (but not a record) for Melbourne (38C) and Adelaide (42C). These are temperatures that those cities often reach in summer. It was about 28C in the other three capital cities. Don’t be fooled — high temperatures are not the reason for the price spikes — as it happens, NSW used 22% more electricity than Victoria that day yet paid 90% less.

Thanks to David Bidstrup for calculating these numbers (MSWord file).

But even NSW and Queensland are pay millions too much

You might think NSW and Queensland have reasonable prices for electricity, but lest we forget, what they pay today is still three times more expensive than they would have been if they were paying 2012 prices. Long ago in the renewable dark ages the average price of wholesale electricity was […]

States with low cost solar and wind paying 1300% more at the moment

Any more free electricity and SA and Victoria will go broke.

In other news a few days ago, the retail price of electricity rose 16% in Victoria and the number of disconnections rose 21%.

In a highly critical report to be released on Tuesday, the Essential Services Commission accused energy retailers of running ineffectual hardship programs that saw customers cut off anyway in most cases. The commission reported power prices leapt 16 per cent last financial year, feeding a 21 per cent jump in the number of disconnections as 60,732 customers had their power cut off. The ESC said the number of disconnections in the last quarter of the financial year was one of the highest on record. — Sydney Morning Herald

Enjoy all the fun of watching our Australian Electricity Market in operation live as tens of millions of dollars get converted into income for AGL, Energy Australia, ENGIE, Origin and Snowy Hydro. No wonder they love renewables.

States with the most cheap wind and solar pay the most for electricity. Graph. AEMO.

Why do we allow a few companies to own so many different and competing generators across the entire market?

AEMO: State of […]

Solar subsidy death spiral: $2 billion in Australia, rising 50% pa as electricity prices rocket

A few Australians are just beginning to realize that they are paying for their neighbour’s solar panel. As news spreads, the shine of good-citizen-solar is going to tarnish fast, but it is going to take a concerted campaign to spread the word.

In one corner are 2 million households which have solar PV and thought they paid for it themselves. In the other corner are 7.5 million households which have exorbitant electricity bills. And in every corner and all across the spectrum is mass confusion thanks to the mass media. The fog of advertisements disguised as “news” means if you ask a dumb-enough-question 70% of Australians will say they want the government to set a high RET target to make electricity cheaper. It’s almost like 2 out of 3 people think we need the government to force us to buy cheap stuff, because everyone would buy the “expensive” planet killing volts if we only had the choice. Doh.

That’s $200 per household (and the rest!) added to the electricity bill in 2019

This is just the direct SRES (Small Renewable Energy Scheme) cost. It doesn’t cover the burden of stabilizing the grid, of covering the cost of baseload power […]

Australians: destroying their grid faster than any country on Earth

Australians are the Renewable crash Test Dummies

As I said for free and two months before the ANU, with a 50% annual growth in renewables, Australia is ramping up unreliable power faster than anywhere.

Now comes a paper: Australia: the renewable energy superstar showing that, per capita, Australia is installing unreliable generators in a blitzkrieg pace, more than twice as fast as Germany is, and 4-5 times faster per capita than the EU, USA, Japan and China. No other dummies are even in the race. The largest coal exporter in the world is working harder than anyone to destroy its largest export earner — which would be noble if only there was more to it than being a magical spell to ward off storms.

This is a legendary paper and very helpful. Save the link, copy the reference, send it to your MP, your friends, your newspaper! Why not head to the launch at ANU at 5:30pm, 14th Feb?

Never again can anyone get away with national flagellation for “not doing enough”. Henceforth Green and Labor M.P.’s will stop calling us a national joke, a pariah, and a disgrace. (Though, actually, all those things are true, for the opposite […]

Melbourne, 200,000 houses blacked out, 10 companies curtailed, as 1-in-3-year hot day hits

***UPDATED: Melbourne has been 42C or more around 50 times since 1855. That’s one in three years. Thanks to Bob Fernley-Jones for the correction.

They were only 250 million watts short:

Loy Yang, powering Victoria, and soon probably “taking the blame” too.

Rachel Baxendale, The Australian

h/t Des Moore

More than 200,000 Victorian households had their power cut off yesterday in a bid to protect the state’s energy system from shutting down, as the Andrews government was forced to admit there was not enough power to keep up with soaring demand in sweltering summer heat.

Homes were blacked out, traffic lights across Melbourne were switched off and businesses were forced to close for up to two hours after the Australian Energy Market Operator enforced rolling power outages to make up a 250 megawatt shortfall in supply.

The State Energy Minister (Lily D’Ambrosio) said there would “absolutely” be no blackouts this morning and the rolling blackouts started 90 minutes later. Welcome to the USSAustralia where we hope to make your 150th Birthday Party 0.001 degrees cooler but we can’t predict our electricity grid for the next hour and a half.

Dark ages […]

Warning: Money on fire in Vic and SA electricity prices at $14,000 per MWh

Prices are “off the chart” in Vic and SA right now and likely for the next few hours. Factories will be closing. Diesel generators will be running, but only in South Australia and Victoria. At these kinds of prices tens of millions of dollars could be going up in smoke every hour. By the end of today the bill could come to more than a hundred million dollars.

In QLD and NSW where there are old or evil coal fired plants the wholesale electricity costs are only $105/MWh.

Victoria

South Australia

The national electricity market (or at least the Eastern half and 90% of the population).

 

Today when we need it, wind power on the NEM is running at about 20% of total capacity. Four out of five windfarms are not working.

 

 

UPDATE: LOR3 (highest level warning) issued in Victoria but resolved at 8pm. In SA the diesel jet engines have been switched on for the first time as emergency reserve. We didn’t used to need to buy expensive machinery so it could sit around for 18 months before it was needed.

 

h/t Ian B, LightningCamel, George, […]

More wind and solar than SA can use — we threw away 10% of the generation

South Australians have so much wind power, too much, that in Quarter 3 last year the AEMO had to intervene to cut off excess wind and solar generation. Ever since the Great Blackout of 2016 new rules mean that there must be enough back up power running to cope with the fickle vagaries of intermittent energy. (Obviously, this wasting of sacred green electrons wouldn’t need to happen if people weren’t so persnickety about blackouts!)

This graph is from the Quarter 3 AEMO report for 2018. It is technically about both wind and solar, but it appears to be mostly wind. Solar is not a star player in Q3 because it’s winter.

Would we put up with any other industrial output that had such a dismal performance. Imagine this was your car….

AEMO Quarter 3 report page 7

Synchronous generation is the kind that comes from machines that spin at 50 Hz (like coal, gas, hydro, nukes). These keep the system stable. Happy happy hertz.

But ten percent of all the wind and solar power had to be thrown away in SA because there wasn’t enough reliable back up power to guarantee the stability of the system.

During […]

New Report: Renewables indirectly make electricity MORE expensive, so ABC tells Australia the opposite

One big government agency quietly admits renewables make electricity more expensive, and another big gov media agency hides it.

The new AMEC report tells us renewables will make electricity prices go down a tiny 2% in the short run but make electricity more expensive in the long run due to forcing out cheap baseload players. What matters most to Australians — that we can expect our electricity costs to be 2% less than “obscene” for the next couple of years, or that the artificial transition we are forcing on the grid will indirectly make electricity more expensive?

Which message does the ABC headline? Say hello to Trivia!

Renewables set to drive down power prices, new AEMC analysis shows The ABC is essentially a taxpayer funded advertising machine for the renewables industry.

A flood of new renewable energy projects is likely to drive down household electricity bills, according to new analysis by government policy adviser the Australian Energy Market Commission (AEMC).

On a national basis, household bills are set to fall by 2.1 per cent — but price falls in the eastern states and South Australia are offset by increases in Western Australia, the Northern Territory and […]

Santa says renewables “push down prices”. Sydney Morning Herald believes him.

It’s Santa’s happy hour in electricity land

Finally, No really, renewables are so cheap we can switch to them and change the global climate for free.

This is a new study by the kind of “independent” group that is totally dependent on Big Gov handouts. It compares Australian prices to other obscenely expensive countries and finds that “renewables push down prices”. Compared to what? Not compared to nations with cheap electricity. And not compared to most of the last thirty years in Australia before we added all the unreliable gear.

The tricky graphs clearly baffled Peter Hannam. If only he were a journalist, he could have asked some hard hitting questions and shown this study to be the concocted vaporous PR exercise that it was.

‘No trilemma’: Study finds increased renewables push down power prices

Peter Hannam, Sydney Morning Herald

Renewable energy drives down wholesale power prices well in excess of subsidy costs and a further expansion of wind and solar would likely push them lower still, a study of Australian and European markets shows.

If renewables actually reduced average prices, this would be a first. Around the world, the more intermittent generators you have, the […]

Rampant solar, wind growth: Australia increases unreliable energy by 50% in 2018. Wow.

The Crash Test Dummy accelerates. Australia is steaming ahead in the forced transition to unreliable energy

A lot of the reason for the growth in renewables is the Renewable Energy Target (the RET). Renewables must supply 16% of our electricity in 2018, and even more in 2019.

Strap yourself in. Buried in the AEMO summer readiness plan was the news that our intermittent renewables capacity is forecast to increase by fully 50% this year. All the renewables we had accrued in the two decade “transition” til December last year, we’ve added half again. We are already pushing the bounds of stability and setting price records, but you ain’t seen nothing yet. We are escalating the rate of change.

In toto, we have 56GW of generation of all sorts in the national grid on the east coast. The wind and solar component increased from 4GW at the end of 2017 to over 6GW by the end of 2018. But it doesn’t take much intermittent power to change the way the whole grid works.

Things are so fragile that a few weeks ago, when 240MW of reliable supply was suddenly not available for this summer, the AEMO had to issue a […]

SA and Vic at high risk of blackouts this summer

Even the AEMO is warning of blackouts coming, because the BoM is forecasting hot, dry conditions. El Nino on the way, and I hear rumours our Snowy Hydro Dam levels are not great.

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There’ll be blackouts this summer if nothing is done, AEMO report warns

Stephanie Dalzell, ABC News

Victoria and South Australia are at a high risk of forced blackouts this summer if no action is taken, according to the latest report by the Australian Energy Market Operator (AEMO).

Not enough supply? Put another million bucks on the BBQ:

To stop that from occurring, the AEMO has sourced emergency energy reserves, which are typically not available to the market and are only accessed when supply is not keeping up with demand.

Those emergency reserves — otherwise known as Reliability and Emergency Reserve Trader (RERT) resources — do not come cheap.

It’s only money:

The report stated that last summer emergency energy cost taxpayers in Victoria and South Australia almost $52 million.

That equated to an average of an extra $6 per household bill.

That’s nothing. The two day heatwave […]