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The Renewables Lobby subsidy and handouts are still growing. In 2018, Australia must get 16% of all our electricity from “renewables”, up from 14.2% last year.
That’s 28,000 Gigawatt hours of magical green electrons from generators that give us nice weather as opposed to generators that cause droughts, floods, cyclones and spread crocodiles, dengue fever, cause wars and change butterflies.
Welcome to modern Australia where our grid is designed by witchcraft, run by superstition, and panders to every whim of the Giant Renewables Industry Lobby.
The noose tightens in Australia.
Renewables must supply 16% of our electricity in 2018, and even more in 2019.
Source: 2001-2030 Annual Targets and renewable power percentages, Clean Energy Regulator.
Prices are rising too: Could there be a connection here?
Even the ABC now says “Something has gone terribly wrong with our electricity prices”. Prices went off the ranch from 2007, rising much faster than the CPI. This is also the point Australia started ramping up the intermittent renewables. Before that the Snowy Hydro Scheme –the only reliable and cost effective form of renewable power — had been operating for decades. Correlation is […]
We’re planning to spend $5,000 million on something to smooth out the bumps from unreliable generators. It is entirely unnecessary in a system where coal supplies the baseload and we have not created artificial rules forcing people to use green electrons in preference over stable and predictable ones. Most estimates of costs from wind and solar ignore the hidden costs — the destructive effect on the whole grid.
Wikipedia on Pumped Storage Hydroelectricity:
“the round-trip energy efficiency of PSH varies between 70%–80%,[4][5][6][7] with some sources claiming up to 87%.[8]
h/t Peter Rees, Michael Crawford, Ian Waters.
Even after Snowy Hydro 2.0, power will cost $90/MWh
Joe Kelly, The Australian last week:
Energy project financier David Carland — the executive director of Australian Resources Development Limited — argues that once the Snowy Hydro project is operating it will provide only partial back-up energy at a high cost.
Using Snowy Hydro’s modelling assumptions, Dr Carland’s calculations show the “levelised cost of energy” — or unit-cost of electricity over the lifetime of an asset — will deliver power significantly in excess of $90/MWh, after allowing for the cost of storage, cycle losses and the initial cost of […]
It’s not even summer.
NSW has been hit by clouds and a lack of reliable coal power. Prices are soaring. In NSW the Tomago Aluminium Smelter consumes about 10% of the state’s electricity. It has been forced to switch off three times in the last week because there was not enough reserve power on the grid.
The boss of Tomago, Mr Howell, said Australia is “at a crisis point with our energy system”.
“This is not summer with extreme demand. This is the likely future of our energy grid as once reliable baseload generators exit the [NEM] and are mostly replaced with intermittent wind and solar projects with no practical storage to speak of,” Mr Howell said. “Our energy debate should not advocate either renewables or conventional thermal,” he said.
— SMH, Peter Hannam,
Aluminum pot lines can only sit idle for a few hours before they cool too far and the damage becomes permanent and wildly expensive as the aluminum becomes solid.
Renewables-fans blame the emergency on the unreliability of coal
See @TheAustraliaInstitute. Suddenly Australia is the only western nation on Earth with coal resources that can’t […]
Wow. Wait til word gets out. This is dynamite.
Chinese Bitcoin miners are reopening the Hunter Valley coal power station called Redbank in NSW. They have a deal that gets around our gargantuan, mismanaged grid by buying coal power direct for 8c/kWh, while Australians in the same place pay 28c/kWh.
This is exactly the nightmare the head of the Australian Energy Management Organisation (AEMO) spoke of just last week — that “big players could abandon the grid”. That’s a degenerate spiral leaving a shrinking pool of suckers to pay for the inefficient, bird-killing, blackout prone, witchdoctor grid.
Bitcoin mining’s growing demand for cheap energy revived a shuttered coal mine
Ashat Rathi, Quartz
Consumers there pay, on average, $A0.28 ($0.22) per kilowatt-hour (kWh) for electricity. But Hunter Energy, which owns Redbank, are offering the crypto miners electricity at a fraction of the cost. The “first-of-its-kind” deal, as the Age puts it, will see the crypto miners pay only A$0.08 per kWh in the day and A$0.05 per kWh at night. Hunter Energy told the Age that the price is feasible because the electricity produced at the coal power plant would go straight to the crypto miners, bypassing—and […]
Just another hidden cost — intermittent generators are vandals on our baseload suppliers. Wind power needs gas, but gas doesn’t need the wind. When the two are paired together it makes the wind energy “reliable” but adds nearly $30/MWh to the cost of the energy from gas. Right now that cost will be added to the gas plant, but in a free market, it should be paid by the wind farm investors.
Stacy and Taylor compared the cost of running a Closed Cycle Gas plant (CC Gas) on its own or combined with a wind farm. The combination produces reliable electricity “on demand” and uses less gas to do it. The sole benefits to this odd industrial couple are a smaller gas bill and lower emissions of a fertilizing gas (CO2). All the capital and labor costs of running a gas plant are the same, but now it sits idle more often, pointlessly waiting like a spare wheel til the wind slows and gas power is needed again. About the only thing we can predict about the wind farm is that it can be relied on for almost nothing, so the gas plant must be almost as large whether or […]
The gold-plated stars of our national grid are the old coal plants we’ve built and paid off.
A US report (thanks Lance) shows how fantastically cheap and bountiful old coal and nuclear plants are. The LCOE or the Levelized Cost of Electricity includes the costs of the concrete, turbines, car parks and coal, plus the maintenance and salaries. It reveals that thirty year old, and even fifty year old coal plants, are the gift from past generations — enormous infrastructure, built and paid for, and ready to churn out bargain electrons. Or in crazy-land, ready to be blown up.
Look how long it takes to pay off the capital cost of building them (the red sector in the graph), and look how wonderfully cheap that electricity is from a 30 year old plant. Watch the pea. All those “investigative news stories” that compare the cost of building new coal to the cost of solar or wind are hiding the most brilliant and essential assets on our grid. Reopen Hazelwood now. (!)
Both sides of politics are choosing to destroy the family jewels in the hope of controlling global weather.
….
From the report by Stacy and Taylor, of the […]
Last year one of our largest coal power plants suddenly closed, with only five months warning, catching the market by surprise and taking out 5% of our cheapest generation. (This kind of improbable anti-free-market feat shows just how screwed our national market is). The Australian Energy Regulator (AER) has looked at the effect the closure of Hazelwood had on electricity prices and concluded that closing cheap brown-coal plants and replacing them with black coal and gas will make electricity prices rise. This will come as no surprise to anyone who can count to 100.
Dan Harrison at the ABC reports:
A year on from the closure of the 1600 megawatt-sized plant in the Latrobe Valley, the report from the Australian Energy Regulator found wholesale prices in Victoria were up 85 per cent on 2016.
Because electricity retailers use hedging for wholesale prices, the rise in retail prices is still feeding through. In the wash, the wholesale increase is expected to add 16% to retail prices this financial year compared to last year. After that, through some miracle, the AEMC expects prices to come back down from Exorbitant to Slightly Lower Than Exorbitant in the next two years thanks […]
Electricity prices declined for forty years. Obviously that had to stop.
Here’s is the last 65 years of Australian electricity prices — indexed and adjusted for inflation. During the coal boom, Australian electricity prices declined decade after decade. As renewables and national energy bureaucracies grew, so did the price of electricity. Must be a coincidence…
Today all the hard-won masterful efficiency gains of the fifties, sixties and seventies have effectively been reversed in full.
Indexed Real Consumer Electricity Prices, Australia, 1955-2017.
For most of the 20th Century the Australian grid was hotch potch of separate state grids and mini grids. (South Australia was only connected in 1990). In 1998 the NEM (National Energy Market) began, a feat that finally made bad management possible on a large scale. Though after decades of efficiency gains, Australians would have to wait years to see new higher “world leading” prices. For the first years of the NEM prices stayed around $30/MWh.
But sooner or later a national system is a sitting duck for one small mind to come along and truly muck things up.
Please spread this graph far and wide.
Thanks to a Dr Michael Crawford who did the original, […]
To understand the real value of electricity, consider the price at which people will give it up. “Demand Response” is the nice euphemism for a voluntary blackout. At what point do people volunteer to go without? For most of the market, apparently, it’s more than $7500/MWh.
If I read this graph correctly, look how fast the prices rise, and how small the response is. For example, in South Australia there is only about 10MW available at less than $300/MWh? (From this AEMO report). For reference the total SA demand is around 1500MW. So 10MW is less than 1%.
(See below for the
Consider how few people are willing to turn the electricity off:
AEMO expects there to be approximately 50 MW of demand response in NSW when the price reaches $1,000/MWh.
The total size of the NSW state market is about 10,000MW. Retail electricity sells for $250 — $470MWh (and only $100/MWh in the US). Hence when the price hits two to four times the normal retail cost of electricity, only about 5% of the market say they will willingly stop using it. When the price hits $7500MWh another 2% will give it up. We can’t […]
More bad luck for the renewables industry. Despite providing free energy from the sun and wind, electricity prices keep rising relentlessly, shockingly fast. Even doubling in wholesale costs in South Australia and Victoria.
It was supposed to be cheap to collect low-level-energy across hundreds of thousands of square kilometers. Who knew that subsidized, unreliable energy would induce volatile pricing, allow the players to game the system, create obscene spikes, drive out the cheapest providers, require expensive battery storage, more frequency control, more maintenance, just as much back up supply, $400 million dollars worth of extra diesel generators (and the rest) and extra long transmission lines? Who knew? — Probably thousands of engineers.
Spot the pattern? Every other nation with lots of renewables has expensive electricity and our forward market says there’s more price rises coming.
Australian electricity prices rising six times faster than wages are growing
Sydney Morning Herald
Electricity prices have jumped by six times the rate of the average pay rise, new figures reveal, as family wallets are increasingly squeezed by essential services such as education, utilities and fuel.
The most significant price rises were electricity, up 12.4 per cent, fuel up 10.4 […]
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 […]
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 fear is palpable
How much fun can you have living in a global experiment? In Australia, peak summer is about to hit in a post-Hazelwood-electricity-grid. There’s a suite of committee reports as summer ramps up. Everyday there’s another Grid story in the press, and a major effort going on to avoid a meltdown. Minister Josh Frydenberg announced today that “we’ve done everything possible to prevent mass blackouts”. Or as he calls it, a repeat of the South Australian Horror Show. Politicians are so afraid of another SA-style-system-black that they are throwing money: The “Snowy Hydro Battery” will be another $2 billion. Whatever. It’s other people’s money.
This is what they are afraid of:
The red bars mean “Reserve Shortfall”. The dark blue matter is “Generation”. The graph covers two years (sorry about the quality) so the two red bursts are summer 2018 and summer 2019.
SA Medium Term Forecast, Outlook, AEMO, Nov 16th 2017, South Australia.
Oddly we are headed for a critical time, but this’s the most recent graph I can find — thanks to Wattclarity — from November 16th, 2017. (Here’s an earlier version from March 2017. and from Dec 2016). Perhaps there is a newer […]
A Sunday Mail survey (paywalled) shows that despite SA having more “free, cheap and clean” renewable electricity than just about anywhere in the world, the number one biggest issue for most South Australians is … “electricity”. And despite all the renewable jobs created, the second most common concern is “jobs”. Going for the Paradox-Trifecta: most strangely of all, with elected leaders who are leading the largest energy transformation since civilization began, the third “biggest issue” facing South Australians is “political leadership”.
Thanks to Eric Worrall, who describes South Australians as “the world’s renewable crash test dummies”.
…
SA has an election coming up in March, but at the moment voters there are caught in the bind between the reality of electricity shocks, and the belief that “renewables are cheap”. Will the local Libs (the opposition) have the spine to stand up and speak the truth and make this election about energy and climate, or will they pander #metoo, and lose the unloseable?
Will the Libs get the message here? Most South Australians like the sound of renewables, but when it comes to the crunch, and the issues they will vote on, electricity prices and jobs will rule. This is […]
The Foodbank press release: Financial stress pushing millions of Australians into food insecurity
One in six or, 15% of the Australian population, apparently has experienced “uncertainty” around food in the last 12 months. For some, that’s only one episode in a year but still, in a first world country which is a major food exporter, it’s not a sign of wealth and good times. If the survey is to be believed, fully 9% of Australians are experiencing a food shortage every month or even more often. Surprisingly, half of those experiencing food uncertainty have jobs — working serfs. Foodbank blames it on living costs — like rent and power bills.
A nation in decline: A ten percent increase in people seeking food relief across the nation
One thing is sure “bill shock” is hurting people, and it’s getting worse:
Foodbank provides food for over 652,000 people a month, however, the front-line charities report that demand for food relief has increased by 10% in the last year and they are forced to turn away 65,000 people every month due to lack of food.
How much does renewable energy contribute? Hard to say — all the factors are confounded and […]
Minister Josh Frydenberg has just implied Australia might drop ongoing endless renewables subsidies (and thus dump the Finkel chief-“scientist” plan). He didn’t say that in so many words, but hinted at it, and will now wait to see how the idea goes down.
Soak in this reasoning — renewables are becoming so cost competitive they don’t need subsidies. He’s calling their bluff. It’s like the announcement to sack climate scientists because “the science is settled”. Let’s take them at their word and follow that propaganda to its logical end:
The key message from Josh Frydenberg is that subsidies for renewable energy are coming to an end.
There is no Clean Energy Target in sight in Frydenberg’s plan for a new policy by the end of this year. The phrase does not get a single mention in his new speech on the way ahead.
In a key argument, the Energy Minister argues that the cost of building wind and solar power has more than halved in recent years.
He does not rule out more subsidies explicitly, but the clear suggestion is that renewable energy generators are now at a point where they can […]
Electricity prices jumped in July. Now, retail sales are falling as wallets run out of money. When Greens, Labor, Conservatives said we need insurance, only skeptics pointed out the price.
Commonwealth Bank economist, Gareth Aird, calls the fall a “shocker”.
Shoppers stay away as power costs bite
–Adam Creighton, The Australian
In a sign sluggish wages and higher power prices are starting to bite, the new financial year has seen the biggest fall in retail sales since 2009…
The Australian dollar fell back towards US78c yesterday after the Australian Bureau of Statistics revealed retail sales had fallen 0.6 per cent between July and August, defying economists’ expectations they would rise modestly.
“Households are facing several headwinds, including record low wage growth, record levels of debt, slowing house price growth, and, importantly, sharply higher energy bills,” said ANZ economist Jo Masters. The drop in retail sales by a cumulative 0.8 percentage points over the two months to August, the biggest two-month decline since 2009, comes as consumers receive their first round of power bills after prices went up more than 20 per cent since July.”
Who would have thought? The country is forced […]
Let’s get “certainty” — dump the RET.
Chris Kenny in The Weekend Australian puts almost all the pieces together. This is self-sacrificial, pointless, and the RET is the problem because the subsidies allow renewables to drive out true baseload generation. The so-called hunt for “certainty” is a hunt for high prices because no one will speak the obvious “Dump the Renewable Energy Target”.
Dumping green folly will secure energy future, reboot economy
We are an energy-rich nation. Last year we exported 388 million tonnes of coal (valued at $35 billion) to supply affordable and reliable energy to countries such as Japan, China, South Korea and India. Our liquefied natural gas exports are doubling from 30 million tonnes a couple of years ago to almost 80 million tonnes (valued at $42bn) by 2019.
Australia also remains one of the largest exporters of uranium…
While we happily export our energy advantage, we have deliberately sacrificed it at home.
Turnbull — doing exactly the wrong thing after Trump won:
Astonishingly, less than a day after Donald Trump won the US election promising to abandon Paris, Malcolm Turnbull announced Australia’s ratification. The Prime Minister thumbed his […]
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