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Another Hazelwood-size batch of renewables coming on line in Australia by 2020.
That’s 1600MW of random subsidized energy dropping into a market that is artificially priced to value weather-changing potential over reliability. Now, even the bosses of two gentailers which both benefit from renewables subsidies are warning things are chaotic, going to get turbulent and more expensive. Why do they admit this? Probably because they want the government to add another layer of policy interference to reward “firm capacity” which they both also own.
Instead, lets get the government and the RET octopus off our grid. Surely we can set up a market that allows players who want electricity at 9am tomorrow to pay more for generators which can actually guarantee to be there. All the market players who don’t care when or if electricity arrives can buy the unreliable energy. Which businesses, industries or homes can use electricity that arrives at midday and random other times, remembering that wind power drops to 5% of capacity for days sometimes:
Renewables threaten volatile power supply, says AGL, Origin bosses
Perry Williams, Matt Chambers, The Australian
Power giants AGL Energy and Origin Energy have raised concerns over a surge […]
Old coal plants don’t have to die, they just need to be fixed
Vales Point, Power Station, NSW, Australia
The Vales Point Coal plant (Part B) was built in 1978. It was sold for $1 million in 2015 by the NSW government. It’s now making a bumper profit. If it gets a $750 million renovation it could keep running til 2049 when it will be 70 years old. Vales has a nameplate capacity of 1,320 MW.
On the other hand, we could follow South Australia and spend $650m and get a 150MW solar plant that only works half the time.*
When is an old coal plant on death’s door a better bet than the worlds largest solar plant? — Every hour of every day. Plus you get free fertilizer.
Profits to keep Vales Point coal-fired power station going for another 20 years
John Stensholt and Perry Williams, The Australian
The Vales Point power station near Lake Macquarie, which supplies about 4 per cent of power for the national grid, could receive a $750m injection to ensure it runs until 2049, making it the nation’s last standing coal station, with the country’s other facilities due to […]
Green genius: Pay $1400 a year to not stop any storms
Finally some veteran engineers checked the Labor Party 50% renewable plan and the AEMO “65% scenarios”. Unlike others, their study that did not involve magical assumptions that the cost of renewables would dramatically fall. Instead they used “actual costs” and found the price of electricity will rise “84%” and cheap coal power will be forced out of business (just like what we also found here). The engineers include Barry Murphy, former managing director and chairman of Caltex. Robert Barr, an electrical engineer and academic at University of Wollongong. If only Kevin Rudd had asked them in 2007.
Engineers warn of bill shock under green energy surge
Adam Creighton, Economics Editor, The Australian
Electricity bills will soar and gas and coal-fired power stations will close if the share of wind and solar generation increases dramatically, engineers have warned after analysing the nation’s energy supply.
It found bills were likely to soar 84 per cent, or about $1400 a year, for the typical household, if wind and solar power supplied 55 per cent of the national electricity market.
A quarter of Australian rooftops have solar, […]
The world still runs on coal and oil
After 20 years of subsidies, intermittent renewables account for just 3.6% of total energy generation. That’s the tiny purple sliver in the graph. Global power means not just electricity, but also fuel used in transport. And this is where wind and solar power are respectively old and slow, or modern but useless.
Someday solar powered planes might make their first round world trip in 48 hours but at the moment they need 16 months. There’s a a bit of hitch in the global energy transition.
Hello fossil wonder fuels:
Global Primary Energy, Graph, 1965-2018
Intermittent renewables are pretty useless everywhere:
Global Primary Energy, Graph, 1965-2018
Solar energy might have “made waves” and increased by an astounding 100GW last year, but it’s still irrelevant:
Oil remains the world’s dominant fuel, making up just over a third of all energy consumed. In 2017 oil’s market share declined slightly, following two years of growth. Coal’s market share fell to 27.6%, the lowest level since 2004. Natural gas accounted for a record 23.4% of global primary energy consumption, while renewable power hit a new high of 3.6%.
— Spencer […]
Once upon a time we could afford heating.
Volunteer knitters in high demand as soaring power prices leave people cold
A national army of knitters is in desperate need of more volunteers to help them meet the growing demand for winter woollies.
Victoria returns to the Victorian era
Knitters can not keep up with demand
“Some people say it has been a colder winter — I actually don’t think so,” Ms Rogers said. I think it’s been milder than what we’ve had, it’s just the need that’s so much greater unfortunately.
“Even if people have got heating, they can’t afford to run it, so they need the warm clothes or the blankets.”
Can you knit to keep a poor Victorian warm?
UPDATE from Beowulf:
I hear Audrey Zibelman, boss of AEMO, is a dab hand with a set of needles. Here’s her favourite pattern ladies: plain one, pearl one, skip 10, repeat.
It makes a jumper full of holes that must be plugged with other materials, but it saves heaps on the cost of wool and we don’t need to breed any more sheep to make our jumpers. […]
In Victoria, 40C used to be known as “A Hot Day”, but now thanks to climate change it’s called an “extreme condition” (wasn’t it meant to become a common event?) Nevermind.
The AEMO (Australian Energy Market Operator) has pretty much warned us the Victorian electrical grid can no longer cope with “a hot day”.
[The AEMO] predicts a one-in-three chance of load shedding under extreme conditions this summer unless additional action is taken.
“Specifically, temperatures of 40C or more in Victoria could be the catalyst for extreme, one-in-10-year electricity demand conditions.
“Particularly when these temperatures are experienced towards the end of the day when business demand is still relatively high, residential demand is increasing, and rooftop PV’s contribution is declining.”
So since solar PV is useless in this situation, the Victorian government is spending one billion dollars installing Solar PV. One billion dollars of generation that is guaranteed not to work when we need it.
Will the new PM, Scott Morrison, be able to solve this problem? Thousands of engineers can.
Once upon a time even the brainless inanimate free market did.
h/t Dave B, Pat
PS: Still travelling.
9.5 out of 10 based on 93 ratings
The advantage of communist autocrats is that they can create government havoc so much more efficiently.
The Chinese solar boom was so big it became the world’s largest solar market. It was so big it pushed up global “clean energy” investment to a record high. China became the veritable show pony of the solar spruikers: “leading the world in clean energy investment”. Mashable tells us it was so big “the solar boom could be seen from space“.
But the star advertisement for renewable glory was all based on subsidies:
The Chinese solar boom was “pretty significant”
A couple of months ago the Chinese government admitted they were cutting the subsidies to make electricity cheaper again for consumers. That hit the stock market. Now projects are being cancelled and orders are drying up for the hapless manufacturers.
The free market might be telling us something China’s solar industry is at a crossroads
“Without subsidies there’s no return on investment for over a decade, so investors and property owners aren’t interested in distributed solar. With subsidies it only takes seven years to recoup the investment,” he adds.
China’s solar manufacturers are unhappy with recent government policy changes […]
Why Australia must exit the Paris Climate Agreement, The IPA report.
IPA estimates Paris Agreement to stop storms and hold back the tide may cost $8500 per Australian family
What a deal. You could have free electricity for the next four years or an imperceptible difference in the air outside the nursing home for your children’s 94th birthday.
The Americans went for the money. So did nearly everyone else.
Damian Wild at the IPA calculates that the Paris Agreement will cost patsy Australians $52 billion dollars in the next 12 years.
Paris deal spells ‘irreparable damage’: IPA report
Rachel Baxendale, The Australian
A study by the Institute of Public Affairs, “Why Australia must exit the Paris Climate Agreement”, estimates our Paris target of reducing emissions to 26-28 per cent on 2005 levels by 2030 will impose a $52 billion economic cost between now and 2030, equating to $8566 a family.
Paris Agreement To Cost Australia $52 Billion
“The immutable law of energy policy is this: lower emissions mean higher prices.”
“Each family in Australia will be at least $8,566 worse off under the Paris Climate Agreement, on average. This is at […]
Last year AGL made $539 million net profit. This year, $1,600 million. What’s not to like about closing Hazelwood?
…
Profit statements confirm what we’ve said — closing cheap coal boosts profits for generators. No wonder AGL won’t sell Liddell for a hundred million dollars. It also shows us that the big “bubble” in electricity prices is from the doubling of wholesale electricity costs. These corporates are reaping it in far above costs. The way to cut wholesale prices is to get rid of the RET, and fix our old coal.
[ABC] Its underlying profit, which excludes one-off items and changes in value in investments and hedging positions, rose 28 per cent to $1.02 billion, at the upper end of the company’s guidance.
Even Andy Vesey admits the coal closures helped AGL:
“This increase in prices in the broader electricity market has mostly been a result of the abrupt closure of non-AGL power stations such as Hazelwood in 2017 and Northern in 2016 and higher input costs from coal and gas,” AGL chief executive Andy Vesey said.
But watch the pea. Who is trying to blame high profits on higher input costs?
Then he tosses […]
Pull the other one.
No Bias — Audrey Zibelman,
Audrey Zibelman, the improbable green-lawyer manager of our National Energy Market claims her advice is not biased towards renewables. This is the same Zibelman who tells us that “resisting the energy transition is like trying to resist the internet.” As if governments had to legislate “An Internet Target” and mandate we do 16% of our shopping online. The same Zibelman believes “we’re the last generation on earth who can really do something about climate change.” She thinks she’s changing global weather with our power grid. By 2100 historians will have people rolling in the aisles with that one. What were they thinking?*
Her bias is so all encompassing she can’t imagine a world twenty years hence which still runs on coal and gas and views the temporary experiment with unreliables as a disastrous, predictable mistake, a historic dead-end. Renewables are the B-size-batteries, the hydrogen-filled-air-ships and the X-rays for shoe shops that didn’t take over the world. She assumes that the forced “transition” to renewables is inevitable, natural and necessary. What if it’s an artificial, uneconomic, unnecessary accident of profit hungry industry rent-seekers and fatuous virtue signaling fools?
Hands up who […]
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 […]
…
No one needed a smart meter when we had smart baseload. Beware Australians, despite the promises and threats, smart meters may or may not make UK customers a paltry saving. When all is said and done it’s not even clear the benefits outweigh the costs.
People who have smart meters installed are expected to save an average of £11 annually on their energy bills, much less than originally hoped. A report from a parliamentary group now predicts a dual fuel saving of £26.
Customer pays, but energy firms save more:
Customers have financed the smart meter programme by paying a levy on their energy bills, while suppliers have frequently blamed the levy for rising costs. However, the report claimed most of the eventual savings would be made by energy firms, rather than consumers.
It is an £11 billion programme. Correct me if I’m wrong, but it appears the country would be richer if the government just gave back £170 to each person instead.
Smart meter looks like a dumb elephant:
The report also said that:
More than half of smart meters “go dumb” after switching, meaning they stop communicating with the […]
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 […]
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 […]
Despite 20 years of non-stop propaganda and belligerent namecalling, strangely, expert green policies have achieved exactly nothing of what they said they aimed for. Coal provided 38% of our power in 1998 and it is still the same 38% in 2017. The non-fossil fuel sector has actually declined slightly as nukes decrease.
We spent billions doing exactly what was asked. Perhaps following the advice of people who think the debate is over and “denier” is a scientific term might not be the best national energy policy?
Fuel shares in global power generation for the last 20 years | BP Energy Review, 2018.
Long-term dominance of fossil fuels unchallenged
Graham Lloyd, The Australian
Global demand for coal and gas to generate electricity was back on the rise last year …
Most striking had been the failure of renewable energy to make an impact on the fossil fuels share of power generation, BP group chief economist Spencer Dale said.
“Despite the extraordinary (global) growth in renewables in recent years, and the huge policy efforts to encourage a shift away from coal into cleaner, lower carbon fuels, there has been almost no improvement in […]
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 […]
Spot the vested interest
The biggest competitor for hydro in Australia is cheap old coal power. Surprise me, Snowy Hydro jumped into the national energy debate a few days ago on behalf of taxpayers themselves.
With Turnbull offering five-billion-dollar gravy to build an unnecessary hydro storage battery, it is no surprise to hear Snowy Hydro pretending that Australia needs more intermittent unreliables. The more solar and wind rock the system, the more Big-Hydro is needed to stabilize the boat. The big question is why hardly any journalists or politicians seem able to spot the obvious vested interest:
Ben Packham, The Australian:
Snowy 2.0 declares wind and solar power ‘clearly cheaper’ than coal
The government-owned company building Malcolm Turnbull’s Snowy 2.0 pumped hydro project has added fuel to the energy wars by declaring wind and solar are clearly cheaper options than coal.
And if you owned Hydro stocks, you’d say that too. Coal is every generators enemy for a reason. It’s cheaper than they are.
See the tiny numbers above the columns in this graph? Those are actual settlement prices — tiny wholesale bargain sales of coal fired electrons at 1c per kilowatt hour.
May 24th, 2018 | Tags: Hydroelectricity | Category: Cost, Global Warming, Renewable |  Print This Post | |
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 […]
The land of the sunburnt country finds that the rapid uptake of solar is a headache, disrupting the grid, adding variability, making management more complicated. Read right through. The head of the AEMO gives an upbeat talk, but the ominous message is that solar panels are flooding in, there are lots of problems, and not only are baseload generators leaving the market, but there may come a day when things are so ludicrously expensive that big energy customers leave to generate their own too. Is that what the death of a grid looks like?
Audrey Zibelman is the head of the AEMO – Australian Energy Market Operator – which has the responsibility of managing the electricity and gas market and grid stability for all Australians. To hear her, you’d think the future is renewable, the transition is not being artificially forced on the market, and there is no alternative to alternative energy.
Zibelman tosses out pat free-market lines with a straight face, saying at 17:20 that we never really want governments to “pick a technology”, ignoring that this whole transition, all of it, is only happening because governments “picked a technology”.
Listen at 21:30 to get an […]
What destroys a grid faster than than a socialist electricity system? A semi-socialist system that pretends to be a free market.
This hybrid monster combines the worst of both socialism and capitalism at the same time. Socialists get the power to destroy, then capitalists can use self serving interest to make it happen faster.
The socialist managers can pick loser options (wind and solar), rig the market, and also conveniently blame the market when things go wrong. In a pure socialist system, at least the public know who created the mess.
What socialism created — socialism can partly solve
In a free market Liddell’s cheap coal power would not be closing in 2022. Since we have no free market, and can’t suddenly create one, the only band-aid option is to buy the damn asset back:
Ron Boswell gets it:
If someone suggested that $3 billion in consumer-funded subsidies be paid to one energy source every year for the next 12 years, and if that one energy source was guaranteed significant market share for every one of those years, and if there were hundreds of millions of dollars available in grants and concessional loans to projects limited to that […]
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The nerds have the numbers on precious metals investments on the ASX
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