JoNova

A science presenter, writer, speaker & former TV host; author of The Skeptic's Handbook (over 200,000 copies distributed & available in 15 languages).


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The Green Agenda meets The Energy Crisis (just in time for COP 26)

Some great Green plans are starting to come undone and it’s not even winter yet

But it is just in time for a reality check on COP26.

Europe’s energy crunch is continuing, as gas storage volumes have shrunk to 10-year lows. In the UK 12 energy companies have collapsed this year leaving 2.2 million customers stranded without an electricity provider. Things are so bad the Dutch government is thinking of reopening the Groningen gas field, Europe’s largest onshore gas field. This is a big backward step for the transition to magical energy. “Until recently, the plan was that Groningen would be closed completely by 2023, ending the large-scale gas production and export by the Netherlands with a bang.”

There are even thoughts of switching back to coal. Drax is suddenly talking about keeping some coal plants running a bit longer, something that would have been blasphemy a few months ago.

Across Europe and Asia — the energy crisis runs amok

No one can blame Brexit for food shortages in Brussels:

https://twitter.com/hermannkelly/status/1442901773958582274

But people can blame Green policies for energy pain

Kate Andrews: Britain’s weak energy security puts net zero in doubt The Daily Telegraph, 29 […]

Bluescope spends a billion in US because “cheap energy”

Add another billion to the cost of the Renewable Energy Target?

In the last few days Bluescope Steel (formerly BHP) has confirmed it will spend US$700m (AU$1b) to expand it’s North Star steel mill in Ohio. So there are multiple headlines. But back in February CEO Mark Vassella explained exactly why they were thinking of it, and his first reason was “energy prices”. Last week, high energy prices were even “a tragedy” for Australian manufacturing. This week however, he’s clarified his position by muddying it up. Now there other reasons and the solution is to fix our gas prices. He’s backpedaling and tossing quotes that happen to help the renewables industry.

Perhaps he’s been heavied by his PR and strategy team? Now he’s saying that energy costs matter, but labor costs do too and “we weren’t ever going to put another steel mill in Australia”. He’s even saying energy costs “did not play a role” — the complete opposite. These will become the quotes the renewable energy fans rely on. Apparently, now what he really wants is cheaper gas — which requires a socialist government-driven solution to fix gas prices, and it’s safe for anyone to mention anything that requires […]

Just change one rule — so the world can see what Wind and Solar really cost

Random power generators. Photo JoNova

Wind and solar power are the intermittent freeloaders on the electricity grid. They are treated as if they’re generators, adding power to the grid, but instead they provide something the grid doesn’t need — power that can’t be guaranteed.

Random gigawatts has the illusion of looking useful, but it’s the gift of a spare holiday house you don’t know if you can use til the day before. It’s the spare fridge in the garage that overheats in hot weather, the extra turkey for thanksgiving that might not arrive til the day after. The bills, the storage, the clutter, the chaos.

As I keep saying in RenewablesWorld fuel bills go down, but the land-maintenance-staff-insurance-FCAS-storage-and-capital costs all go up.

RenewablesWorld is a place where a lot more people and machines sit around and watch cat videos on youtube.

Here’s a great plan by Terry McCrann.

The one rule that would expose wind power’s true cost

Terry McCrann, The Australian, Business Review

If you wish to sell power into the grid, the NEM or National Energy Market, you will have to guarantee a minimum level of supply and guarantee that minimum level of […]

18 years of Renewable Energy Target means an expensive and unstable grid, and still 75% coal

A big new study by electricity grid nerds (and I mean that in the nicest possible way) shows that after all the money and pain of 20 years of forced transition Australia’s electricity has shifted from 85% coal powered to 75% coal powered, which cost billions and as a bonus, made electricity more expensive and unstable. We drove out some brown coal, but swapped it for black coal. Instead of ousting coal power, the extra solar and wind power replaced some gas and hydro.

The authors are genuine independent experts, and the report is incredibly detailed — so this is rare — but still suffers from serious drawbacks:

The team doesn’t question the need for an artificial expensive transition. Almost all the problems they describe are caused by government policies that task our grid with changing the climate as well as producing cheap and reliable electricity. In a grid being ruined by inept policy, the implied solutions almost all involve more regulation and government policy. If our gas prices are too high we could ban sales overseas, but then we lose the export income. The left hand steals from the right. The free market solution is to use another fuel, […]

More renewables, more record prices

Once again, bad luck for renewables. The AEMO put out their report for the first quarter of 2019. Despite a massive growth in renewables, power prices are still not falling as predicted.

The report highlights that record high spot wholesale electricity prices were set in Victoria and South Australia, and nearly in everywhere else as well:

• Victoria and South Australia’s quarterly average spot wholesale electricity prices of $166/MWh and $163/MWh were their highest on record.

• Victoria and New South Wales recorded their highest underlying energy price on record, while Queensland, South Australia and Tasmania recorded their seconded highest energy prices on record.

These record highs were not just billion dollar price spikes, but the actual underlying energy prices as well.

Looks like a trend here:

Wholesale electricity prices, NEM, Australia, Q1, 2019 | Click to enlarge.

The news gets reported but somehow coal and heat get the blame?

Record power bills in NSW, Vic

Perry Williams, The Australian

Power prices in NSW and Victoria soared to their highest level on record in the first quarter of 2019, with the jump blamed on high coal and gas tariffs and searing […]

Invisible costs of renewables: “Staggeringly high” $125b for US electricity consumers

A major new “nail in coffin” study shows the more renewables we force onto the market the more expensive electricity gets.

Everyday someone tells us renewables are cheap, but these estimates come from flawed “LCOE” method (at best) supposedly the lifetime cost, but without many indirect costs. Granted, it’s hard to figure out what the bill for renewable energy is. But what really matters to every man and his dog, is the cost effect on the whole system, not a cherry-slice comparison of a few sunny-windy hours a day which doesn’t take into account the effect that renewable energy has on the rest of the 24/7 electricity grid.

Greenstone, McDowell and Nath have analysed all 29 states in the US where there are laws demanding a certain percentage of energy be renewable. On average a 4% increase in renewables led to a price rise of 17% and the impost was wildly high compared to any remotely sensible cost-benefit analysis. Renewables are the car insurance bill that costs 3 times as much as your car. Any serious environmentalist would hate renewables.

Michael Shellenberger, Forbes

The cost to consumers has been staggeringly high: “All in all, seven […]

Solar Power at $70 is still twice the price of brown coal

More fake news: Miners are only switching to solar because they can’t get access to cheap coal fired power.

“Miners switch on to renewables”

A better headline would be: Renewable targets make electricity so expensive miners are forced to switch to renewables.

The money quote:

Emily Alford is a principal consultant at Oakley Greenwood … [she] told The Weekend Australian that solar generation cost about $200 a megawatt hour five years ago, and had dropped to about $70-$80 now.

Compare that to 53 year old Hazelwood coal power which was selling electricity for $30/MWh in it’s last month of operation. When brown coal stations set the price in Victoria they were winning bids at prices like $13/MWh.The cheapest electricity in the world comes from 30 year old brown coal plants.

The $70-$80 estimate is artificially low. Unreliable power makes the other baseload generators more expensive, adding $30/MWh to gas generators for example. Because the back up generators have to be there, not earning money while solar feeds in, they have to charge more to recoup those costs in a shorter working period. Doh. So add that cost to solar, not the gas.

Compare the real costs and weep: […]

Australian electricity market wrecked by big-gov: corporates gouge $3b from electricity customers

Thanks to Big-Gov’s Renewable Energy Target, big corporate greed was unleashed:

ABC — Australian energy giant AGL ‘gouged’ customers after Hazelwood closure, new research shows

Some of the nation’s biggest energy companies have allegedly used the closure of Australia’s dirtiest coal-fired power station to price gouge customers and make an extra $3 billion in wholesale profits, according to a new report.

We already knew that renewables are so poisonous they make other generators more expensive. But this is something “extra”. Either big corporate’s suddenly turned into greedy machines or the government destroyed the free market that worked fine for years:

When the closure of Hazelwood was announced just a few months earlier, AGL increased the price of much of the coal-fired power on offer from the Bayswater and Liddell plants in NSW.

The study found a significant part of the output from the Liddell plant was repriced from $40 to $60 per megawatt hour, to greater than $5,000 per megawatt hour — so expensive it effectively restricted supply.

At the same time, much of the power offered by the Bayswater plant almost doubled in price, from about $40 […]

“Market Bloodbath”: Too many new remote renewables projects means high losses

As Australia push-pumps “renewables” into remote locations some of their incomes are suddenly being cut because the losses (as they transmit across long lines) are higher than they expected. On March 8th the AEMO rerated many generators and this year it’s being called a bloodbath for wind and solar. Some of them, like AGL’s Silverton wind farm face losses of 20%.

It all revolves around something called Marginal Loss Factors, a value that is set by the AEMO each year for each generator. The rating is reduced by transmission losses over distance and also by “congestion” from other renewables which are popping up in the same remote locations far from the cities and industries that need the electricity they make. This sudden loss of expected income threatens new wind and solar projects (as it should — hello market signal!) Sometimes the loss factors are hard to predict years in advance which makes it difficult to also predict whether a project will return a profit (even despite the guaranteed subsidies).

Another renewable inefficiency strikes — “marginal loss factors”

Generators are paid according to the electricity that arrives rather than what they produce at the plant. (Seems fair). This is called the […]

The cost of one days electricity on the Australian grid is three times (or 50 times) more than it was in 2012

There were no headlines but $300 million dollars was burned at the stake of renewables

Just another day on the exciting Australian NEM.

Friday week ago we had another price spike hitting the $14,500 mandated price cap. On that day South Australians and Victorians paid a blistering $61 million and $210 million respectively. That’s the cost of a single day’s electricity on what was a hot day (but not a record) for Melbourne (38C) and Adelaide (42C). These are temperatures that those cities often reach in summer. It was about 28C in the other three capital cities. Don’t be fooled — high temperatures are not the reason for the price spikes — as it happens, NSW used 22% more electricity than Victoria that day yet paid 90% less.

Thanks to David Bidstrup for calculating these numbers (MSWord file).

But even NSW and Queensland are pay millions too much

You might think NSW and Queensland have reasonable prices for electricity, but lest we forget, what they pay today is still three times more expensive than they would have been if they were paying 2012 prices. Long ago in the renewable dark ages the average price of wholesale electricity was […]