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What costs $1,500m, makes no electricity, but “saves money”?
South Australia has used federal subsidies to build more wind power than it can use. They’ve spent half a billion already on diesel powered jet engines and a battery that can power the state for “minutes”. For 139 hours last year the state produced so much wind power it supplied 100% of the states electricity needs and then some, and the problem of excess electricity is only getting worse as wind generation keeps increasing and solar PV uptake is rampant.
When government rules and regs have created an inefficient, expensive problem, what do we do? More of it. A new report suggests that South Australia needs a direct transmission line to NSW which will cost $1.5b. We could spend that on a reliable generator instead, or get the government out of the way and let the private sector do it for us, but instead we need to pay for another transmission line to connect up different zones-of-subsidy-rent seekers and hope we get $30 off the bill? It’s a savings in the statistic margin of error…
South Australia didn’t even have an interconnector til 1990. Now with decentralized and renewable power they […]
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 […]
The government running the renewables crash-test-dummy state has lost
In South Australia, Jay Weatherill is gone. Resigned. Tally so far: Libs win 24 seats, Labor 18. Though according to commenters SA voters were choosing between Lite-Left and Hopeless-Left. The new premier will likely be less-bad. Xenophon (small alternate non-establishment player) was crushed. He didn’t side with either Labor or Libs, so voters probably felt they couldn’t afford to sit on the fence and risk more years of Weatherill’s reckless industry-destroying state government.
The Greens are down from 8.7% to 6.6%, a fall of 25% in their popularity. (Not that I could find any news headlines to that effect).
The message for the soft left:
Chris Kenny: [A Lib win] … will flash a warning to Labor in Victoria, Queensland and Canberra about the perils of ambitious renewable energy targets prioritising climate gestures over electricity affordability and reliability.
The Libs appear to have made the most of hi-tech analytic campaigning. The Kochs and others in the US have set up i360:
Through i360 the SA Liberals believe they have progressed to a new level of targeted campaigning… the MP called up a marginal seat, […]
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Complexity has a price
Royal Adelaide Hospital, dubbed the “third most expensive building in the world” is doing more to help with global climate control than any other first world hospital. But a few weeks ago some of the planet saving batteries leaked all over the floor.
The government has claimed it [Royal Adelaide Hospital] produces half the greenhouse gas emissions of other hospitals.
Shame about 80 litres of sulphuric acid spilled into a hospital room. Firefighters were called in, and one person had to be decontaminated.
Are battery acid burns covered on your health plan?
Four giant batteries installed inside the new $2.4 billion Royal Adelaide Hospital to help the facility meet the Weatherill government’s strict low-emission targets have ruptured without warning, spilling 80 litres of sulphuric acid.
The toxic accident in a power generator room inside the hospital, which opened in September after delays and legal disputes over building defects, saw one person exposed and decontaminated at the scene by firefighters.
The batteries won’t be replaced til people know what went wrong:
Central Adelaide Health Network chief executive Jenny Richter said replacement batteries had been ordered but would […]
Today the South Australian government destroyed the smoke stack of the Playford B Plant, one more part of what’s left of the cheapest base-load electricity generators in the state.
For about $8 million a year over three years, they could have kept some coal power going and wouldn’t have needed to spend $400 million on emergency diesel generators they don’t want to use, and over $100 million on a battery that can supply 4% of the state for one hour. They also would’ve paid less than $120 million for two days of electricity last week.
On the upside, they can feel good and pretend to be “world leaders”. Virtue signalling is expensive, eh?
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The plant employed 185 people, the coal mine 200. Other businesses in the town, who knows? People are leaving.
SA, a star in the race away from being a competitive, powerhouse rich state. Creating wealth and jobs in China.
Last South Australian coal-fired power station demolition nears completion
The Australian, Luke Griffiths:
The concrete and brick structure at the 240MW Playford B power station, named after long-serving South Australian premier Sir Thomas Playford and mothballed in 2012, leaves only […]
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, […]
Welcome to a clean green Australia where we gave up coal to move to diesel.
Back to the future. Diesel’s prototype engine circa 1892.
Channel Ten news tonight discusses the sudden surge in demand for diesel generators
Homes and businesses are so afraid of blackouts in Australia that some retailers are selling four times as many generators as normal. Mygenerator.com.au reports a 425% increase year on year. The strongest growth has been in South Australia, Victoria and western Sydney.
According to Channel Ten, Energy companies across Australia have sent letters to their customers to warn customers to be prepared in case there is a blackout. But one company says it’s just a precaution they are required to do every year. (Does anyone ever remember getting a letter like that?)
Once, the renewables industry just wanted “certainty” for business (as in certainty of taxpayer funded subsidies). Now “certainty” means a diesel generator.
h/t Dave B
9.8 out of 10 based on 66 ratings
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”.
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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 new SA rescue plan is more diesel than battery
Diesel’s prototype engine circa 1892.
A big fuss was made today over the world record battery, but the diesel generators put on a hire-purchase plan three days ago are more than twice the power:
The world’s biggest lithium ion battery has been launched in South Australia, with Premier Jay Weatherill declaring it an example of SA “leading the world”.
The first diesel generator was patented in 1892. Go, Go, SA.
A battery bandaid arrived barely in the nick of time:
That reliability was tested before the battery’s official launch when it began dispatching around 59 megawatts into the state’s electricity network on Thursday afternoon as the state hit temperatures above 30C.
How fragile is this system?
The facility has the capacity to power 30,000 homes for up to an hour in the event of a severe blackout but is more likely to be called into action to even out electricity supplies at less critical times.
There are 673,540 households in South Australia and the Big Battery can supply 4% of them for an hour with electricity, or all of the state for a […]
Maybe they’ll get one like this one? 😉 Circa 1934.*
Green management of the South Australian grid scores another big success for the environment:
SURGING power prices are pushing South Australian dairy farmers such as James and Robyn Mann to go off-grid.
The Manns’ electricity costs have more than doubled in five years, from about $200,000 per annum to $500,000.
Due to the high prices, the family will this summer switch to diesel power to run their 116-stand rotary dairy and 14 irrigation centre pivots at Wye in the lower south east of South Australia.
The Manns are among Australia’s top 10 dairy producers, in terms of volume, milking up to 2300 cows and producing 19-21 million litres annually.
If only South Australia had more “cheap” solar and wind power, their electricity might be as low cost as the coal-fired Victorians:
Their move comes as South Australia’s dairy lobby has calculated the state’s dairy farmers paid about 40 per cent more for power than their Victorian neighbours last season.
The Mann’s are definitely going diesel this summer, but may set up a mixed solar-diesel-battery plan in the long run:
[…]
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 […]
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:
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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 […]
Crescent Dunes, Solar Thermal Plant, USA. | Wikimedia Author, Amble.
A company called SolarReserve is planning to build the new Aurora 150MW solar thermal plant at Port Augusta, which is apparently a copy of their Crescent Dunes plant in the US. But that project has been offline for most of the time since last October. The whole SA government is meant to be running 24/7 off “solar power”, which allegedly only has about 8 hours of energy stored up (as heat in the molten salt block). So an 8 month break will be a bit of problem for the SA government (except of course, we all know that the real baseload backup here at 4 or 5am everyday, and most of the day in winter, is ultimately the very fossilized gas and coal.) Since the project only began working in Sept 2015 it managed to operate for all of one year and one month before it went offline for 8 months due to a leak. The SA State Energy Minister is not concerned saying it was a construction issue and SolarReserve “have learnt from that”.
The 150MW myth: most of the time it will be less, a lot less […]
A little update on our favourite green state.
SA tries to fix a Big-Government mess with a Bigger Government:
Man-made regulations created the grid-crisis in South Australia, so the Weatherill government has decided to take what didn’t work and “do more”.
Australian rulers subsidized unstable energy, and lo, created an unstable system. The SA state govt thinks it can solve it by running an opposing scheme simultaneously. The Renewable Energy Target (RET) scheme meets the Energy Security Target (EST). Don’t laugh. The Electricity Price Target (EPT) is probably next. This is magic wish-fairy governance where the guy in charge doesn’t take the effort to understand the cause of a problem and unwind it, he just waves a wand and issues a decree. Perhaps Weathrill thinks the hamstrung-market can squeeze some stable electrons out the ether, but cheap stability only came from coal in SA. His kind of stability-on-command comes out of wallets instead.
The fairy plan looks so bad even the wonder-hero, Elon Musk, is getting nervous that electricity bills will stay painfully high (making his battery power solution not look so attractive to the rest of the world). SA is going to be held up as the global text […]
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 […]
The wind fizzled out over the South East slab of Australia during June. Predictably, that meant the wind industry lost millions, and wholesale electricity prices went up. When the Bureau of Meteorology (BOM) was asked where the wind had gone, Darren Ray, expert climatologist, said it was due to a high pressure system over the bight, which, he explained, was linked to “climate change”. Thus, as the world warms, wind farms will be progressively more useless in South Australia. Perhaps the BOM should have mentioned that before SA became dependent on wind farms? I don’t think he had thought this one through.
Perhaps the BOM is hoping that the masochistic sacrifice of South Australia will stop global warming before global warming stops the wind farms?
You might think that if the global climate models could see this coming they would have suggested that wind farms weren’t a good idea. Or maybe, since climate models predict every equal and opposite outcome in unison, the models are always right post hoc, but not so useful in projections?
Climate models predict climate change causes faster and slower winds over Australia
In 2017, Darren Ray, BOM expert, said the decrease in winds was due […]
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