|
|
Luckily for Energy Oligarchs, Australian electricity prices have bounced right back to pre-pandemic insanity. Wholesale rates are romping around $170 dollars a megawatt hour in April across the whole national grid…
The media mouthpieces are blaming it on outages of coal turbines — even though wind power fails every week, and solar fails every day. If unreliable generators cause high prices, then Wind is King Fickle. They’re also blaming high coal prices, but coal itself, is a small part of the cost of a two billion dollar plant. Naturally, neither political team has a clue how to fix this. But it’s all so banal — the prices are set at auction, and some fuels are cheap. Add more of the cheap type, and we’d get cheaper electricity.
Right now, if there were more black coal plants setting the price more of the time, electricity would be half the cost. If enough brown coal plants like Hazelwood were still running, the prices would be a fifth. It’s all there in the data that ABC journalists never find. Consider the winning bids by fuel type in Australia for the last quarter of 2021. For Brown Coal, the average winning bid was $11 […]
Rafe Champion is fishing for responses
Daniel Westerman, AEMO
In May this year Daniel Westerman replaced Audrey Zibelman as the CEO of the Australian Energy Market Operator. She was appointed in the Turnbull era after she was tipped as a possibility for Energy Secretary under President Hilary Clinton. In the event their loss was our gain.
Daniel Westerman is now the head man in the organization that runs the operation of our grid and prepares scenarios for decarbonization of the power sector.
What questions would you ask him if you were on the panel to interview the candidates for the position?
8.8 out of 10 based on 34 ratings […]
Here in Renewables-World downunder, most people don’t know the grid has barely scraped through the last two weeks. We almost lost an Aluminium smelter, came close to a statewide blackout and South Australia is (possibly) still islanded from the rest of the National Grid.
The AEMO held a crisis meeting yesterday but this trouble started Friday week ago in what was described as a “white knuckle event” by energy analyst, Paul McArdle at WattClarity. A storm knocked down six large transmission towers on the high voltage interconnector line in Western Victoria which left South Australia suddenly islanded. This time SA had 1,000MW more energy than it could use, so frequency in SA suddenly rose to a near disastrous 50.96Hz and briefly perhaps even higher. (Wait for the official reports). The system teetered but managed to stay running. Prices rocketed up to the usual spike to $14,500/MWh in both Victoria and South Australia.
It would have been nerve-wracking in the control rooms. The Portland Aluminium Smelter in Victoria, which is the largest single user of electricity in Victoria, had a near death experience. Both pot lines shut down immediately. It appears emergency workers only managed to get 50% of the […]
The Basslink cable has gone down again, and is expected to be out of action til mid-October. Luckily for Tasmania, the dams are at 45% full. However in Victoria, which sits on one of the largest brown coal reserves in the world, currently prices are hitting $300/MWh every morning and every evening at peak time. This graph below shows 5 minute prices for the last two days in Victoria. Every dollar Victoria saves at lunchtime from solar generation is lost a few hours later, and then some. Though it’s wrong to use the word “saves” at any time of day. The wholesale price of brown coal power for years was $30/MWh, and this below is a wholesale price graph. Even the lunchtime “low prices” are twice as expensive as brown coal which can supply all day, every day and for hundreds of years to come and doesn’t cause voltage surges, frequency instability, or house fires, and doesn’t need backup batteries, demand management schemes, free movie tickets, or dark hospitals.
The AEMO must be counting their lucky stars that this happened at probably the “best” time of year when demand is lower.
….
The effect of the Basslink outage […]
The Electro-pyre conflagration escalates.
The cost of electricity on Thursday in two states of Australia reached a tally of $932 million dollars for a single day of electricity. Thanks to David Bidstrup on Catallaxy for calculating it.
As Bruce of Newcastle says “ “Three days and you could buy a HELE plant with the money wasted.” That’s a power plant that could last 70 years, and provide electricity at under $50/MW. (Forget all the high charges for 30 years to pay of the capital (in red below), we could just buy the damn thing outright, paid off in full from day one.)
Cost of old coal plants in the USA. From the report by Stacy and Taylor, of the Institute for Energy Research (IER)
Burned at the stake: $500 per family
In Victoria, per capita, that means it cost $110 for one day’s electricity. For South Australians, Thursday’s electricity bill was $140 per person. (So each household of four just effectively lost $565.) In both these states those charges will presumably be paid in future price rises, shared unevenly between subsidized solar users and suffering non-solar hostages. The costs will be buried such that duped householders will not […]
The Crash Test Dummy accelerates. Australia is steaming ahead in the forced transition to unreliable energy
A lot of the reason for the growth in renewables is the Renewable Energy Target (the RET). Renewables must supply 16% of our electricity in 2018, and even more in 2019.
Strap yourself in. Buried in the AEMO summer readiness plan was the news that our intermittent renewables capacity is forecast to increase by fully 50% this year. All the renewables we had accrued in the two decade “transition” til December last year, we’ve added half again. We are already pushing the bounds of stability and setting price records, but you ain’t seen nothing yet. We are escalating the rate of change.
In toto, we have 56GW of generation of all sorts in the national grid on the east coast. The wind and solar component increased from 4GW at the end of 2017 to over 6GW by the end of 2018. But it doesn’t take much intermittent power to change the way the whole grid works.
Things are so fragile that a few weeks ago, when 240MW of reliable supply was suddenly not available for this summer, the AEMO had to issue a […]
Last Saturday at 1pm both Queensland and South Australia were cut off from the national grid. In Sydney 45,000 homes lost power for a couple of hours. Shops had to close. Trains were stopped. Passengers were stranded. Traffic signals were not working on major roads. Chaos. Industrial users shut down in a mass of 725MW of load shedding.
Apparently this was due to lightning.
Once upon a time, Australian states were self sufficient, now interconnectors allow us to share problems:
Two states “Islanded” simultaneously
Two vital interstate power interconnectors blew without warning at the weekend, causing blackouts and critical industrial incidents and isolating two states from the national electricity grid, in a dramatic reminder to Scott Morrison just days into his prime ministership of the nation’s energy policy paralysis.
Queensland and South Australia were exporting power across the interconnectors when they were simultaneously tripped on Saturday, forcing power to be cut to big industrial users and retail customers in NSW and Victoria.
The nation’s biggest single-site power user, the Tomago aluminium smelter in the NSW Hunter Valley, lost power without warning, halting two pot lines for up to an hour. Alcoa’s Portland smelter in […]
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 […]
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 […]
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 […]
|
JoNova A science presenter, writer, speaker & former TV host; author of The Skeptic's Handbook (over 200,000 copies distributed & available in 15 languages).
Jo appreciates your support to help her keep doing what she does. This blog is funded by donations. Thanks!
Follow Jo's Tweets To report "lost" comments or defamatory and offensive remarks, email the moderators at: support AT joannenova.com.au
Statistics
The nerds have the numbers on precious metals investments on the ASX
|
Recent Comments