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 […]

In SA recycling business goes broke due to electricity cost — thank renewables for making recycling impossible

A business processing 15% of Australia’s low grade plastics survived for 37 years with coal fired power in SA, and for one year without:

South Australia’s sky-high electricity prices have forced an Adelaide plastics recycling business to shut its doors, costing 35 workers their jobs, its managing director says. Plastics Granulating Services (PGS), based in Kilburn in Adelaide’s inner-north, said it had seen its monthly power bills increase from $80,000 to $180,000 over the past 18 months.

Managing director Stephen Scherer said the high cost of power had crippled his business of 38 years and plans for expansion, and had led to his company being placed in liquidation. “I hate to think of how many hours I’ve wasted on the AEMO website with tools to monitor spot pricing, to assess the implications of power, the trends of power and the future costs of power.

The SA Government is still in denial:

SA Environment Minister Ian Hunter said it was disappointing the facility was shutting down, but he said the pain of high electricity prices was being felt across the country. Mr Hunter said help was available through the State Government’s energy efficiency programs.

SA Premier turned down a $30m coal deal that could have saved a billion dollars

The SA blackout cost around half a billion, and building a new gas plant (with a $170b in green bribes) adds another half. It’s now emerged that Alinta offered Jay Weatherill a deal to keep the Port Augusta power plant running which he turned down. If he had paid just $30m to keep the Northern coal fired station in business, there might have been no statewide blackout, and no need for regular load shedding. Wholesale electricity contracts in SA have risen from 8c per KWhr to 14c since mid last year.

Alinta offered to keep Port Augusta power station running — The Advertiser:

The owner of the now-defunct Port Augusta power station made a secret offer to keep generating electricity until mid-2018 in return for $25 million from the State Government — 22 times less than its $550 million power plan.

In the six-page letter supplied to The Advertiser by the Liberals, Alinta warns of significant risk to the security of South Australia’s power supply and a surge in electricity prices — costing the state $56 million to $112 million a year — if the power station and associated Leigh Creek brown coal mine were to […]

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 […]

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 […]

It’s that bad — talk of “declaring emergencies” and nationalizing South Australian electricity

Smell the desperation

Here in Oz, political lives are in turmoil. Suddenly “load shedding” is the topic de jour, and there are hit lists of suburbs in the firing line. It’s a long list. Welcome to your green future.

The language is ramping up. The SA state government is talking of a “dramatic intervention in the electricity market”.

The plans are “advanced” but they apparently don’t know what that intervention is. It could be a script for “Yes Minister”:

Premier Jay Weatherill said the plans were well advanced, and all options remained on the table.

“One option is to completely nationalise the system,” Mr Weatherill said.

“That’s an extraordinary option. It would involve breaking contracts and exposing us to sovereign risk and the South Australian taxpayers to extraordinary sums of money. “It’s not a preferred option but we’re ruling nothing out at this point.”

Even if there were no more blackouts in SA, how much stress is added by not knowing if the electricity will be cut off without warning? How many people are preemptively running air conditioners early or all day?

The situation has changed so much that even Malcolm Turnbull, the […]

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 […]

Big win: Turnbull wasted billions, but now backs super critical coal, copies skeptics 5 years later

Back in 2011 Anton Lang, Tony Cox, and I wrote here about why Australia would be better off with super critical hot coal generators (which China already uses, and which even Indonesia will get before us). Not only do we get cheap reliable power, but it would be a better way to reduce our emissions (if we want to pretend to change the weather).

Now, finally, in 2017 Malcolm Turnbull is saying the same thing as the skeptics he mocked years ago. This is how the “climate meme” dies, one unacknowledged step at a time. Gradually all the skeptical positions get picked up, years later and after burning billions at the altar of “climate control”. This is a big win for skeptics, but don’t expect Turnbull or the ABC to be honest enough to say so. This marks a major turning point in the discussion about coal in Australia which has mostly never got past the “coal is dying” and the “stranded assets” inanity which implied that coal has no future and our massive coal reserves were useless instead of being our major export industry.

Last week Tony Abbott, former PM, called for stop to subsidies for wind power – […]

If SA gets any more free energy everyone will go broke

A funny thing happens when governments put “free energy” into an electricity grid. Wind turbines force down wholesale prices, but everyone’s electricity bill goes up.

Those cheap green electrons look so seductive, but the advertising hides the effect that intermittent, unstable electricity has on the whole system.

Armada Funds Management manages $400m dollars worth of South Australian shops. Look at the price shock these small business managers are dealing with, like $1200 a month, and only one employee:

Power spike hits South Australian shopping centres

The Australian, Jan 18:

Chris Monaghan, Armada’s managing director [said]…costs for purchasing electricity for shopping centres in South Australia had increased by 87 per cent during peak times last year and 101 per cent in off-peak periods. Costs would increase again this year a further 57 per cent at peak periods and 15 per cent off-peak.

The total extra cost to landlords could run into hundreds of thousands of dollars.

Nino Pilaia, who has been running Meats-N-More Carvery & Spuds … His business was among those ­affected by power blackouts last year and ever-increasing energy costs. “For this little place here of about 30sq m, it is […]

More bad luck for South Australia, yet another blackout, 300 powerlines down, 125,000 homes cut off

A fifth of South Australia lost power yesterday due to a nasty storm.

You would think with all the climate models predicting more of every kind of extreme weather that South Australia, of all places, which is spending millions to prevent this sort of weather, would have upgraded their transmission lines to cope with it? Then again, maybe the models didn’t exactly predict these, not-so-extreme 120km/hr gusts.

Still Adelaide has a good desal plant to help them cope with climate change.

That wasn’t the case back in 1948 when a cyclone went through.

Roofs were blown off, flash floods occurred and a frigate washed ashore in 1948. (Click to read it all).

For the poor people of the west coast of SA, this may be their fourth blackout in four months. Some had another blackout last week due to lightning and a wind gust of “up to 111km/hr”. It doesn’t look like this has anything to do with renewables, it appears to be inadequate infrastructure and probably the return of a natural weather cycle (Adelaide was hit by a cyclone in 1948, widespread damage in 1954, much damage in 1927, and in 1910 and 1916):

Almost one-fifth […]

The South Australian black out — A grid on the edge. There were warnings that renewables made it vulnerable

Australians are going to be talking about this for weeks. Indeed, the SA Blackout is the stuff of legend.

The Greens are blaming coal (what else?) for causing bad storms and blackouts. Forget that Queensland gets hit with cyclones all the time and the whole state grid doesn’t break. Some greenies are also raging against “the politicization” of the storms. Yes, Indeedy. Go tell that to Will Steffen.

We are not being told the whole story. We do know that South Australia has the highest emphasis on renewables in the world. It also has a fragile electricity network, and wild price spikes to boot. (Coincidence?) The death of a few transmission towers should not knock out a whole state, nor should it take so long to recover from. The storm struck worst north of Adelaide near Port Augusta but the juicy interconnector from Victoria runs in from the south, and goes right up past Adelaide and most of the population. Why couldn’t the broken parts of the system be isolated?

Digging around I find ominous warnings that while the lightning and winds probably caused the blackout, the state of the South Australian grid appeared to be teetering on the brink, […]

Wind power sucks money and electricity in South Australia

On a good day South Australia has more than 40% renewable energy. On a bad day, it’s -2 or something. Wind towers suck in so many ways. They can even draw more power out than they bring in and best of all — their peak electron sucking power comes just when the state needs electricity the most.

Business blows up as turbines suck more power than they generate

The sapping of power by the turbines during calm weather on July 7 at the height of the ­crisis, which has caused a price surge, shows just how unreliable and ­intermittent wind power is for a state with a renewable ­energy mix of more than 40 per cent.

South Australia has more “renewable” wind power than anywhere else in Australia. They also have the highest electricity bills, the highest unemployment, the largest number of “failures to pay” and disconnections. Coincidence?

The emergency measures are needed to ease punishing costs for South Australian industry as National Electricity Market (NEM) prices in the state have frequently surged above $1000 a megawatt hour this month and at one point on Tuesday hit the $14,000MWh maximum price.

Complaints from business […]