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How much do we hate Lignite Gas?
Victoria is suffering the largest rises in wholesale electricity prices in the country, as it sits on large gas fields that it won’t touch. Why — geniuses hope to reduce global droughts and floods and sea level in 2100.
Robert Gottleibsen savages the state governments that conducted the renewables experiment without mentioning the real costs or the cheap alternatives.
If Victoria allowed its gas to be developed the energy scene in Australia would be transformed, as would the outlook for the nation.
But that’s not much consolation for those in vast areas of rural NSW and Victoria plus suburban Melbourne and small areas of South Australia who suffered blackouts or reduced power on Sunday night. It’s true part of the outages were caused by fuses, but the outages were too widespread. It’s another smokescreen.
If similar conditions are repeated on weekdays and/or extend over several days the blackouts will be devastating as a result of the political vandalism. Government spin doctors and others are desperately trying to conceal the truth about the damage governments headed by Victorian Premier Daniel Andrews, NSW Premier Gladys Berejiklian (plus her predecessors […]
The Mystery: The most resource rich nation on Earth has the highest electricity prices?!
Ask anyone and get confused: It’s poles and wires, gaming of the system by capitalist pigs, excessive taxes, privatization, and record gas prices. The CleanEnergy Council tells us that Australia has one of the longest electricity networks in the world — we need lots of poles! And so we do. But once upon a time Australia had the cheapest electricity in the world and we still had lots of poles. Not only were miles of poles and wires, there were also capitalist pigs, excessive taxes, and privatized generators. There were wild gas price spikes too, (during which we probably just burned more coal).
Evidently, something else has changed. Something seismic that wiped out all the bids below $50/MWh.
Perhaps it has something to do with the 2,106 turbines in 79 wind farms that on random windy days might make 4,325MW that didn’t exist in Australia in 1999 when electricity was cheap and our total national wind power was 2.3 megawatts?
Another clue might be the 1.8 million new solar PV installations, which theoretically generate 7 gigawatts of electricity at noon on cloudless days if all […]
Hope foreign readers are enjoying the spectacle of a first world nation destroying its competitive advantage with renewables. Hope that helps you avoid the same fate.
Praise the lord, states without coal don’t have to load-shed-industry (because they don’t have much left):
The South Australian Treasurer is bragging that SA didn’t have to shed any industry load on Friday, but the coal state of Victoria did. Pull the other one:
“In terms of supply we should be okay,” he [the SA Treasurer] said.
“Victoria I understand is about to load shed industry. So they’re not coping with the power supply.
“They are a coal-dependent state and they are having to take industry offline to support their households. In South Australia we’re not having to do that today.” — h/t A H
The Treasurer didn’t mention that SA shed the load already over the last two years by driving heavy manufacturers out of business, and out of the state. Let’s name some:
Gone from the SA power load: Mitsubishi, GMH, Plastics Granulating Services (Recyclers), Caroma (76 jobs) after 79 years in business, Penrice, Arnotts biscuits (120 jobs), Aldinga Turkeys (79), ACI Glass (60 […]
While geniuses are bragging that the Australian grid survived two normal hot summer days without falling over, they don’t mention the flaming spectacle of the cost.
Tom Quirk and Paul Miskelly, after a couple of suggestions from me, have calculated the full staggering electricity bill at $119m for SA and $267m for Victoria, making it nearly a $400 million dollar bonfire — for two days that were neither the hottest ever, or records for peak electricity use. See their work and details below.
To put this in perspective, a whole new gas plant could have been built for around $230 million. Instead of vaporising this money, Australians could have constructed one whole new gas generation plant, paid it off, and had money left over to give away free electricity.
Every household of four in Victoria just lost something like $170 of productivity for two days of electricity, and in South Australia, $280. Respectively, $45 per Victorian and $70 per South Australian. While businesses also share this burden, ultimately companies are made of people, and this is productivity lost to both states. The losers are shareholders, customers, and employees. Some will be interstate, but the pain flows back. The price is […]
UPDATE: MELBOURNE hospitals are enacting emergency procedures to prepare for the potential loss of power. Hospitals are switching off non-essential electrical equipment, including some lights, to minimize energy use. This is a “Code Yellow” alert asking hospitals to check their back up generators are ready. The Victorian Minister insists this is not about the “threat” of blackouts, but because hospitals need to be “good corporate citizens”. Pull the other one. At the very least, this is about reducing electricity bills. h/t Chris in Hervey Bay.
See further UPDATES on “The art of blaming coal” at the bottom.
How much fun can you have? The AEMO (Australian Energy Market Operator) projects that as temperatures hit 42C in Victoria, prices are forecast to rise over 100 fold. The AEMO is furiously busy issuing market notices.
The ABC tells us it is 42C, that Portland Alumina has reduced production, but for an ‘undisclosed price’ (why can’t taxpayers know what they are paying this group, not to produce aluminium today?) Meanwhile the AEMO has put the RERT plan into action: “Under the RERT scheme, AEMO has contracted 884 megawatts of “demand side response” across Victoria, NSW and South Australia.” Translated, […]
Watching the AEMO dashboard as a hot summer day hits
Is this the summer crunch-time that the the National Grid managers have been fearing?
Today things are not running smoothly in the green states of Victoria and SA where prices this minute have hit $14,000 per MW hour, or $14 per KWh. These are wholesale prices. Right now heads of major industries are watching the dashboard, turning off everything they can turn off, or switching on the diesel generators, or counting hundreds of thousands or even millions being added to their bills if production cannot stop.
Demand Management schemes (a form of load shedding) will be running to reduce demand — air conditioners will be remotely switched down.
How much of the productive brain power of Vic and SA is distracted from more useful tasks today?
The AEMO has put out an Actual Lack of Reserve Notice (LOR1) saying that Victoria is 300 MW short: “The contingency capacity reserve required is 1100 MW. The minimum reserve available is 815 MW”. Another notice of a “non-credible contingency event” (a code for “something broke”) reports that a busbar, transformer, and line have tripped or opened in Victoria, unplanned.
Victoria
…
[…]
The shape of normal AC Electricity: 50Hz (230V) and 60Hz (110V)
Nobody says much about FCAS in public — but it’s become a hot topic among Australia’s energy-nerds and electricity traders. It never used to be a big deal, because we got it at very low cost from huge turbines — from coal, hydro, and gas. Suddenly, it is costing a lot more. As I discovered below, in one month FCAS charges in South Australia rose from $25,000 to $26 million. Wow, just wow.
What is FCAS?
FCAS means”Frequency Control Ancillary Service”. With an AC (or alternating current) system, frequency is everything — the rapid push-pull rhythm that is the power. FCAS is a way of keeping the beat close to the heavenly 50Hz hum (or 60Hz in America and Korea). Network managers cry when things stray outside 49.85Hz or 50.15Hz. So controlling the frequency is a very necessary “other service” supplied by traditional generators, but not so much from intermittent renewables. Large spinning turbines “do” FCAS without a lot of effort. And the cost used to be a tiny fraction of the total electricity bill, but it is rapidly rising in Australia, thanks to the effect of the […]
Three ways to destroy a perfectly good electricity grid
Council for the National Interest (CNI)
Royal Perth Yacht Club 2:30 til 4:30
Australia II Drive, Crawley Bay, Nedlands.
Free Entry
UPDATE: A great success and a lot of fun. These events are always so well run. If you live in WA check out CNI. A smart, polite and friendly crowd.
9 out of 10 based on 110 ratings
Some people in Sydney will be paid to not use electricity in peak periods
Instead of a big blackout the plan now is to have lots of little “by choice” blackouts at the appliance level. It’s smarter than crashing the grid, but ponder what we’ve swapped –once electricity was cheap and “all the time” and now after this discount it will still be more expensive but also “not there when you need it”. Let’s all cheer for progress.
Cashing in for slightly less obscene electricity bills? How low is that bar on our expectations.
Sydney households to cash in for turning off appliances
Houses and business in some high-growth Sydney suburbs will be offered payments to dial down or switch off appliances during peak demand periods under a scheme being trialled by the state’s biggest distribution network.
Ausgrid is planning the demand management trial for up to 10 suburbs across the city — including Alexandria, Redfern, Auburn, Kingsford and Waterloo — over summer in a bid to reduce the peak load on its network.
It is expected to cost around $1.5 million in payments to households and business and to involve up to 1300 […]
When too much solar is more than enough
The WA government-run electricity provider (Horizon Energy) has called a halt to new solar installations in Broome, a town in Northwest WA that is not connected to the national grid, or even the main WA grid. (It’s 2,000km north of Perth). About 10% of the town’s power comes from solar* but apparently the little grid can’t handle the fluctuations, so the early birds got the subsidies, and the rest got grumpy.
June 3rd, ABC:
Broome residents tire of cap on solar power installations Horizon Power only allows 10 per cent of the town’s power to come from solar due to issues with grid fluctuations This leaves some residents unable to install a solar system that connects to the grid Horizon is trialling battery storage technology in other WA towns and hopes to expand this to Broome
Residents in the Kimberley town of Broome have said they are fed up with being prevented from accessing solar power despite living in one of Western Australia’s sunniest towns.
State-owned energy utility Horizon Power allows just 10 per cent of the town’s power to be generated from solar to protect the grid […]
The new phrase that must be neutered is “base load”. It’s like kryptonite for renewables!
Nick Kilvert at the ABC helpfully provides a no-hard-questions mouthpiece and tells us Base load power is the dinosaur in the energy debate.
To serve the Australian taxpayer he quotes a Professor Vassallo, Chair of Sustainable Energy Development (USyd), and CSIRO Energy Director Dr Glenn Platt. Just in case they weren’t green and biased enough he also interviewed Professor Blakers, director of the ANU Centre for Sustainable Energy Systems. Finally he turns to Dr Mark Diesendorf, who is apparently just some guy at UNSW with a team of modelers. (Kilvert doesn’t give us his title, but a two second search suggests he works at the “Centre for Energy and Environmental Markets“. Perhaps it was an oversight, or maybe Kilvert was feeling guilty that every single person he quoted has a career in sustainable energy). Glenn Platt — by the way, is not just “Energy Director” but is described at The Conversation as leading the Energy Transformed Flagship research centre at CSIRO. So that’s four green academics, no one from the coal industry, no skeptics, no other engineers, and no one involved in managing a grid.
[…]
We are creatures of habit. Look at the spike caused at 11:32pm as something like 27,000 hot water tanks in South Australia suddenly switch on to use cheaper off-peak electricity. This spike is entirely due to pricing plans. It’s entirely avoidable too, but at least it’s predictable. “Scheduled”.
This peak, allegedly, is only a problem if SA is “islanded” — meaning if it can’t rely on the coal generators in Victoria.
Yesterday people were asking why the South Australian demand was peaking at 1am (and why two hours were strangely missing from that graph). “Hot water” is the answer (at least to the first part).
SA Hot water systems add sudden 250MW of demand at 11:30pm. Graph.
This graph comes from the AEMO report in Feb 2016. What follows is their electro-nitty-gritty:
Based on previous experience, and as demonstrated in a separation event on 1 November 2015, maintaining the SA power system in a secure operating state is challenging if there are large changes to the supply-demand balance during a period of islanding.
There is a risk of automatic under frequency load shedding if SA is being operated as an island during the hot water demand peak, […]
What other heavily subsidized industry brags about its ability to provide a product for one quarter of the time it’s needed? Vale sunny-day-solar!
Pick a day, an hour, and what are the chances solar will be there for you? A lot less than one in four, because last Monday’s peak in South Australia was an all time record. Every day in the last year was worse.
And so much for cheap… the price when solar power peaked was still close to $50/MWh. Compare that to most of the years of the national electricity market operating when average prices were $30/Mwh.
The price dip at 6am (the black-line bottomless gully), has nothing to do with solar, but was caused by wind power. Far from being useful, essential, or productive, solar and wind power are playing havoc with a normal market, destroying the chance for cheap, reliable energy to find a place. As long as we force the market to accept this non-dispatchable supply, we are actively punishing reliable power. What investor in reliable energy would look at this and head to South Australia?”
Giles Parkinson was excited at Reneweconomy: Rooftop solar provides 48% of South Australia power, pushing grid […]
The cost of Going Green, The Australian, Cover, September 1, 2017.
The Australian calculates the total bill will be in the order of $60b for green electricity.
It’s not like we could have done something better with that.
Read it all (if you can), then write to your MP and Senator. Ask why — if they are serious about helping reduce CO2 — we don’t have a USC coal plant like so many other countries, and why we don’t have nuclear power. Then ask why, if they are concerned about the poor, about health, about education, we are wasting $60b dollars to try to change the weather in 2100 that we could be spending on these critical areas right now?
Taxpayers hit with a $60bn power bill
The Australian, Adam Creighton
Taxpayers will have paid more than $60 billion through federal renewable energy subsidies by 2030, about twice what the crumbling car industry received over 15 years and enough to build about 10 large nuclear reactors.
The government’s large and small-scale renewable energy targets, which will compel energy retailers to buy 33 terawatt hours of wind, solar and hydro energy by 2030, will […]
In a genius move, Victoria, which has “soaring” electricity prices, now announces plan to copy South Australia where people pay more for electricity than anywhere:
The Andrews government this morning unveiled a new renewable energy target with a commitment to power up to 25 per cent of the state from renewables by 2020 and 40 per cent by 2025.
The government has backed the construction of two large scale solar farms in regional Victoria which will provide another 140MW to the state’s supply, and has set up a reverse energy auction system to bring forward an additional 650MW to the state’s supply.
Meanwhile the trams will run on sunshine.
Legislation creates savings, how?
Victorian households will allegedly each save around $30 annually on power bills under the new plan, while medium sized businesses have been projected to save up to $2400 a year under the legislation which will be introduced to parliament today.
It’s almost like Victoria plans to make electricity from legislation (hey, it’s renewable, and will never run out). By making electricity shockingly expensive, Government ministers can talk of “savings”, even though prices will be far higher than the average price […]
It’s not even close: If South Australia seceded it would have the highest electricity price of any nation on Earth.
Australian Households pay highest power prices in the World, AFR.
South Australian households are paying the highest prices in the world at 47.13¢ per kilowatt hour, more than Germany, Denmark and Italy which heavily tax energy, after the huge increases on July 1, Carbon + Energy Markets’ MarkIntell data service says.
When the eastern states’ National Electricity Market was formed in the late 1990s, Australia had the lowest retail prices in the world along with the United States and Canada, CME director Bruce Mountain said.
The Markintell report graph:
…
Hmm — odd coincidence of Price with Wind Energy Penetration:
Wind energy is “free” but countries with the most wind power are also the most likely to get to the top of the Prize Pool for exorbitant electricity. Wind energy penetration is highest in Denmark (1st), Portugul (8th), Ireland (6th), Spain (11th), Germany (3rd). Conversely, renewable energy penetration is low in places at the tail end of the price curve like Luxemburg 6%, Estonia 15%, Hungary 7%, Lithuania 15.5%. In the low mid price […]
It’s a creative South Australian solution to an unstable, expensive grid: close large factories and have less blackouts. If they can close enough, it’s guaranteed to succeed:
Holden closure will help Energy Market Operator manage SA’s blackout risk, report finds
Part of the soon-to-be vacated Holden factory in Adelaide is about to be transformed into a temporary power station to help stave off load-shedding blackouts this summer.
But the car industry’s closure will help the authorities manage the risk of blackouts in another way.
The exit of a once powerful manufacturing sector will see the state using less electricity, particularly during the all-important summer peak.
The information is contained in the latest Electricity Forecasting Insights published by the Australian Energy Market Operator (AEMO).
From a story last year:
The closure of Holden’s Elizabeth plant is expected to result in 13,000 job losses across the company and its supply chain.
Energy use in SA is set to fall from 3,116MW to 3,035MW in summer peaks. Even so, they’ll still need more temporary generators (time to cut more jobs?):
Nevertheless, AEMO is forecasting widespread shortfalls of reserve power over […]
Australia is a wonderful living experiment for nations worldwide of how a people with more energy resources per capita than anywhere else in the world can sabotage a perfectly good electricity grid in the hope of appeasing the Weather Gods.
At the request of Senator Malcolm Roberts, Alan Moran slices up our “Chief Scientists” report (known as the Finkel Review) and gives us some home truths. Electricity costs have doubled in Australia, Finkel’s plan would take what isn’t working, and do more of it — in the process pretty much destroying one fifth of our manufacturing base, costing us thousands of jobs, and adding almost $588-$768 per household annually to energy bills. Let’s ask Australian voters if they want cheap coal power or if they’d rather spend $600 a year to make the weather unmeasureably nicer in 2100? Why don’t we have a plebescite on that?
In other basic truths Moran points out that while Finkel seems to think new coal fired plants are uneconomic, everyone else is building them around the world. Old plants don’t have to be blown up on their 50th Birthday either. They can be maintained instead, like lots of other perfectly good 50 year old […]
Something very “seismic” has happened to our electricity prices.
Paul McArdle of WattClarity goes through each state looking at quarterly trends and prices, and remarks that things are going “off the chart”. We had some electricity crises in Australia in the last 12 months, and 2016 was a significantly more expensive than all previous years bar the major drought year of 2007. But ominously, prices haven’t come down in what should be a “normal” quarter. In Tasmania there was a crisis last year when dams ran dry, and the undersea Bass cable broke. But this quarter, prices are only $3.20/MWh lower than the crisis levels of Q2 2016 despite water in dams and a working cable to Victoria. Something has gone seriously wrong with our electrical grid and market. In both Victoria and South Australia prices are higher on average than any previous April-June quarter in the 19 year history of the National Electricity Market. In Queensland and New South Wales, prices are at the “second highest”.
McArdle goes to some length to explain that this is not “one factor”, which seems obvious and fair — Its the combination of the closure of Hazelwood and Port Augusta coal generators; the […]
“End-Coal” Global Coal Tracker does a magnificent job of showing how essential coal is around the world, and which countries are pathetically backwards in developing new coal plants. It’s probably not what the “CoalSwarm” team was hoping to achieve, but this map is a real asset to those of us who want to show how tiny Australia’s coal fired assets are compared to the rest of the world. The site itself is a fancy-pants high gloss major database and website that also shows how much money is in the “anti-coal” movement. Oh, that skeptics should have even 2% of these funds. Heffa Schücking, the director of Urgewald, which created the maps, calls it a “cycle of coal dependency”. Normal people call it “freedom and wealth”.
Chinese companies build coal plants — NY Times
These Chinese corporations are building or planning to build more than 700 new coal plants at home and around the world, some in countries that today burn little or no coal, according to tallies compiled by Urgewald, an environmental group based in Berlin. Many of the plants are in China, but by capacity, roughly a fifth of these new coal power stations are […]
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