Australians forced to pay $60b for expensive “green” electricity

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 […]

Victoria plans to reduce electricity prices by copying state with most expensive supply in the world

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 […]

Australia, Denmark, Germany vie to win Highest Global Electricity Cost! (It’s the Nobel Price Prize?)

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 […]

SA Solar Thermal plant is a copy of US plant that was out of action for one third of its life so far

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 […]

Australians paying $600 per household to subsidize wind and solar

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 […]

Japan: Fifty solar PV companies already gone in 2017 as subsidies end. Coal soaring.

What’s the word for competitive-but-needs-a-subsidy? Broke…

One hundred solar PV companies are forecast to collapse in Japan this year alone.

Up to 100 solar PV firms in Japan could face bankruptcy this year, with more than double the number of firms going bust in the first half of this year than the same period in 2016.

According to corporate credit research company Teikoku Databank, which surveys companies across various industries and has produced its third report on solar PV company bankruptcies, 50 companies in Japan’s solar sector have already gone out of business in the first six months of 2017.

While the market overall has rapidly expanded from the launch of the feed-in tariff (FiT) in July 2012, Teikoku Databank acknowledged that there has been a slowdown in deployment in the past couple of years as the government successively made cuts of 10% or more on an annual basis to the premium prices paid for solar energy fed into the grid.

Bankruptcies have doubled in the industry since last year.

Meanwhile Japan plans to build at least 45 HELE Coal Plants.

Check out the map of “coal in versus coal out” in Japan. For […]

Electricity cost train-wreck arrives in Australia

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 […]

Wind disappears in South Australia, costing wind-industry millions, BOM blames climate change even though models predicted faster winds

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 […]

SA govt to spend $100m on diesel generators (but could have spent $8m keeping coal plant instead)

I’d like to thank South Australia for so selflessly showing the world how well renewables work. (And thank we West Australians for paying for it).

To get ready for the shortfalls next summer, the SA government is said to be ordering in 220MW of diesel generation at an expected cost of $114m.

The government has contracted privately owned South Aust­ralian electricity distribut­ion company SA Power Networks to obtain and install 200 megawatts of back-up generation across the state before summer. But despite promising a “detailed costing” would be provided in last week’s state budget, Treasurer Tom Koutsantonis did not offer any such details.

The opposition said the budget had allocated $114m for operational costs in 2017-18 from the $550m energy plan, “indicating the diesel generators are going to be very expensive”.

This $106m sacrifice is expected to reduce global temperature by 0.000C, but will save the premier from being called a climate denier at dinner parties:

“Eighteen months ago the Tasmanian government spent $64m in leasing, site establishment and operational costs for 220MW of diesel generation for three months when a combination of drought and repairs to the Basslink left it short of electricity,” […]

SA will take top prize for Most Expensive Electricity from Denmark on July 1

South Australia has the largest uranium deposit in the world, which it digs up to sell to other countries to make electricity. It also has lots of sun and wind and empty space. If any state can make solar and wind power work, surely it’s there.

And renewables are working for SA, working to put it in top place for Global Electricity Bills.

South Australia power prices to rise to highest in the world on Saturday, energy expert warns

South Australia will overtake Denmark as having the world’s most expensive electricity when the country’s major energy retailers jack up their prices this Saturday.

AGL, EnergyAustralia and Origin Energy will all increase their electricity prices from July 1, adding hundreds of dollars to annual household bills. Residential customers will see an average rise of 18 per cent under AGL, 19.9 per cent from EnergyAustralia, 16.1 per cent with Origin Energy. Bruce Mountain, the head of a private energy consultancy firm, said the increases would see South Australia take the lead on world power prices — but for all the wrong reasons.

“After taxes, the [typical] household in South Australia will be paying slightly more than […]

India, China: Clean dust, pollution off solar panels every two months, and still lose up to 35% of production?

How often do you clean your solar panels? Spare a thought for the poor sods in the Middle East, India and China, where migratory dust coats solar panels and hangs around in the air, blocking incoming sunlight. Researchers in India who cleaned their panels every few weeks and discovered that they got a 50% jump in efficiency each time. If the cleanings happened every two months, the total losses were 25 to 35 percent.

The article very much blames human pollution for half the capacity loss, but in the detail, the press release admits that 92% of the dust on each panel was natural. Apparently human made particles are smaller and stickier which makes the 8% human-emitted-dust equivalent to the 92% of other dust.

Either way, real pollution and natural dust will slow the clean-green-energy future in India and China until we get auto-cleaning panels or roof slaves. Unfortunately, cleaning panels also risks damaging them, so the price of solar power really needs to include the cost of windscreen-wipers/slaves, electricity losses, damage to panels, and damage to the panel cleaners too.

But solar panels will definitely power all the other parts of the world that are near enough to the […]

Finkel: Turn the whole country into South Australia by 2030 — 42% “renewable”

In one of the most massaged spin-doctor sales messages in Australian history, the Finkel Report is here to “take the politics out” and solve our energy instability and out-of-control prices. But it’s actually an aggressive green-left weather-control program where cost and stability are secondary to the unspoken but main aim which is to slow storms in 2100. If Finkel were really aiming for stability and price control he’d let the free market run, get the government out of our electricity grid and look at the evidence that shows that solar-panels and wind farms don’t, won’t and can’t work as global air-conditioners for us or our grandchildren.

Australians, read this line and weep:

“Modelling for the Review estimates that by 2030, 42 per cent of electricity demand will be met by renewable generation.”

This is where South Australia is currently at, but it has a lifeline to coal power in Victoria whenever it needs it. What happens when the whole National Grid needs a lifeline? Pull out your wallet…

How much does an undersea cable to New Zealand cost? It’s only 2,000km.

For the same price we might be able to afford a new ultra-supercritical coal plant and catch […]

Another glorious solar scheme fails ignominiously, “fast clouds”, “rusty pipes”, dumb decisions

Another award winning solar project collapses: it was a $105 million dollar scheme. One company, Areva, lost about $50m and so did the taxpayer. Everything went wrong, management, planning, cheap poor quality steel from China, industrial dispute that left 80% of the pipes rusting on a dock. Three thousand solar reflectors are sitting unused in what was a potato paddock in Dalby. Nobody wants to buy them. They’re obviously worthless. CS Energy is state owned power utility, and it spent $50m but pulled to pin to save wasting another $50m.

In 2011 Julia Gillard raved about how it was going to save 35,000 tons of carbon.

“Ms Gillard says the project could be one of many under the new carbon tax scheme.

“With the clean-energy future I want for our nation, I want it to be a norm,” she said.”

Fans of renewables will cite the management problems as the reason for the failure, not some inherent problem with solar. But the “Clean Energy Culture” is the problem — the same pathetic, uninformed and corrupt decision-making that subsidizes solar so unnecessarily also creates the same dud decisions in management, legal, and industrial relations. The environment […]

AEMO Report blames renewables: SA Blackout due to lack of “synchronous inertia”

The Final AEMO Report on the big-SA Blackout deals up some hard truths, and contradicts its earlier claim that the “energy mix” didn’t matter. The key theme here is about the system inertia. The Blackout on Sept 28 last year was an accident waiting to happen, and it wasn’t storm damage to lines that caused it. The blackout would not have happened if wind power had not been so dominant.

The transition to a 35% wind powered system left the SA grid very vulnerable. On Sept 28 last year, the safety settings on wind turbines were overly sensitive and when voltages “bumped” the turbines shut off suddenly, but those shutoffs hit the system too fast, and that caused the interconnector to shut off too, sacrificing SA to protect the rest of the national grid. The settings themselves are not the main issue — because they can be changed to prevent a repeat. It is a fixable problem — what is harder to fix, is the lack of inertia, and the sheer complexity. These are the biggest challenges of any renewables grid. We can fix even those problems, but at what cost in order to change the weather 100 years […]

Battery powered SA, could be 100% renewable for just $60 – $90 billion

South Australia (SA) is planning to build a new gas fossil fuel plant for $550 million because it has too much competitive and “cost efficient” free energy. There are fears this will not only push up electricity prices in the state but in Victoria, NSW and Tasmania too. (Bravo, SA). In order to build a new fossil fuel plant with Greens permission they spend $360m on the new gas plant, and then offered $150m more to appease the angry renewables spirits. It is said to be needed to encourage investment. Obviously no sane investor would spend money on renewables for purely economic reasons.

Meanwhile Elon Musk offered to fix the states problems in just 100 days or “it’s free” and with only $33million for a 100MWh battery farm. The offer has triggered a bun fight between Musk and local companies who say they can do even better.

But in the long run, SA wants to go “100% renewable”. Below Paul Miskelly and Tom Quirk calculate that for SA to truly do that, it would need about 270GWh of batteries to cover the peak use. This would require 7.5 million tonnes of lead acid batteries and cost 60 – 90 billion […]

Solar Homes use more grid electricity than non-solar homes

There are probably more solar panels in QLD than anywhere else in the world. Back in February last year, the boss of the Queensland state power company announced the awkward result that households with solar panels were using more electricity than those without. Apparently people without solar were turning off the air conditioner because electricity cost too much, but the solar users didn’t have to worry about the cost so much.

Queensland solar homes are using more grid electricity than non-solar, says Energex boss

Feb 2016: Solar-powered homes in south-east Queensland, which boasts the world’s highest concentration of rooftop panels, have begun consuming on average more electricity from the grid than those without solar, the network operator has found.

Terry Effeney, the chief executive of state-owned power distributor Energex, said the trend – which belied the “green agenda” presumed to drive those customers – was among the challenges facing a region that nevertheless stood the best chance globally of making solar the cornerstone of its electricity network.

From October 2014 in Queensland, the average grid electricity use of solar homes started to exceed the average use of people without solar power and stayed higher for the […]

Australia “invented airconditioning” but can’t keep them running

James Harrison (click to enlarge)

Peter Hartcher points out that the country that invented refrigeration and thus airconditioning can no longer guarantee to keep them working.

In 1854 [James Harrison of Geelong] invented a commercial ice-making machine. He expanded it into a vapour compression refrigeration system, the basis for modern refrigeration.

“That’s right – an Aussie invented the fridge and it’s first real use was making beer,” remarked the US technology website Gizmodo. “You have to love this country.”

And one more big coal generator shuts down soon in Victoria:

In the next few weeks 4 per cent of Australia’s power supply will vanish when Victoria’s big Hazelwood power station shuts down, clapped out after 50 years of turning coal into electricity. It’ll be the ninth coal-fired power station to close in the past five years. New solar and wind plants are being built, but they are intermittent, and that means they are unreliable.

“Taking out Hazelwood is taking out a big buffer,” says Tony Wood, energy program director at the Grattan Institute policy research centre in Melbourne. And, as we’ve just witnessed, Australia’s power system lacks buffers. “Managing intermittency is […]

SA Blackout: a grid crippled by complexity

South Australia suffered it’s fifth blackout in five months last week. The AEMO report on that incident came out today. There are lots of faults, errors and small problems, and one overriding theme — it’s too complex:

AEMO (Grid market managers) thought they’d have more wind power. It fell to only 2% of “total output.” There was a computer glitch which “load shed” more people than necessary. Oops. SA Power Network apologized today. Demand was higher than expected. The gas plant generators at Port Lincoln were ““not available due to a communications system problem”. (Whatever that means.) That was 73MW out of action. One turbine at Torrens Gas plant was out for maintenance (120MW gone). Another was running 50MW low because of the heat. (Seriously, these machines operate at hundreds of degrees and work at 35C but not so well at 42C? (Or whatever it was). Color me skeptical. Perhaps some grid engineers can comment and tell us if this is normal?

So in a modern renewable grid we have variations in supply and demand that are of the order of the average grid load and at the whim of The Wind. What could possibly go wrong?

Finally the SA […]

South Australian electricity is coming your way

Yesterday 90,000 customers lost power in SA (making it Blackout Round 5 since the big one last September).

This time it was due to load shedding.

SA power woes to spread nation-wide, starting with Victoria, Australian Energy Council warns

The Federal Government needs to take urgent action to improve its energy policies before the rest of Australia falls victim to the type of large-scale blackouts experienced in South Australia, the Australian Energy Council has warned.

It’s not just that renewables muck up the electricity supply (with frequency and instability issues), they also drive a pike through the energy market. These are two separate disruptors. We’ve seen inexplicable spikes in power prices in SA in seasons when it shouldn’t happen, but this might be a new form of volatility. Wind power produced 900MW earlier in the day, but that fell to below 100MW within 6 hours (which is not that usual, see the post yesterday for the graph). The problem, apparently, was that no one thought it was worth turning on their generators?

SA has enough generation (if only it was running), but when the crunch came, the market failed:

It asked for more power generators to […]

Rolling blackouts ordered in SA in 40C heat

South Australia, with 40% renewables, is lucky this has been a mild summer.*

Welcome to your load-shedding future:

Rolling blackouts ordered in Adelaide as city swelters

Widespread power blackouts were imposed across Adelaide and parts of South Australia with heatwave conditions forcing authorities to impose load shedding.

About 40,000 properties were without electricity supplies for about 30 minutes because of what SA Power Networks said was a direction by the Australian Energy Market Regulator. — The Australian

Premier Jay Weatherill blamed the AEMO for not ordering a gas power station to come online.

Electricity prices spiked to $13,440 MWh. Total demand was about 3,000MW. Things are expected to be the same tomorrow.

At 6pm tonight wind power was producing less than 100MW (about 7% of its rated capacity):

Look at the price spike and the forecast for tomorrow:

AEMO, Electricity Prices, Feb 8, 2016

Perhaps with better planning and more money they can reduce the need for planned blackouts — but why bother?I guess they’ll have those gas powered stations running tomorrow.

It has been smack on average at Adelaide Airport at 28.1C for January 2017.

*The Wind power graph was supplied in WA time, so […]