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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 […]
The Australian Fake Free market is so screwed. What asset is worth more in the trash-can than sold to a willing bidder? AGL is the definition of Predatory Capitalism.
Everyone is talking about Liddell. The old coal plant is on the chopping block in 2022 and we can see the electricity price rise coming from here.
People in Australia are going without their veggies to pay for electricity. Liddell coal plant makes cheap electricity (like old coal plants everywhere). This is a problem that would solve itself if not for Malcolm Turnbull, the RET, and the AEMO. It takes a lot of money and whole fleets of bureaucrats to stop the free market fixing this by default.
AGL is the largest coal-fired producer in Australia, but it’s also the largest generator in toto and the largest investor in renewable energy on the Australian Stock Exchange. Spot the conflict of interest? The company controls 30% of the generation in our two largest states, and 40% in South Australia. The man in charge of AGL – Andy Vesey — formerly of New York, earns $6.9 million a year, and can probably afford to pay his own electricity bill. But as Tony Cox […]
The gold-plated stars of our national grid are the old coal plants we’ve built and paid off.
A US report (thanks Lance) shows how fantastically cheap and bountiful old coal and nuclear plants are. The LCOE or the Levelized Cost of Electricity includes the costs of the concrete, turbines, car parks and coal, plus the maintenance and salaries. It reveals that thirty year old, and even fifty year old coal plants, are the gift from past generations — enormous infrastructure, built and paid for, and ready to churn out bargain electrons. Or in crazy-land, ready to be blown up.
Look how long it takes to pay off the capital cost of building them (the red sector in the graph), and look how wonderfully cheap that electricity is from a 30 year old plant. Watch the pea. All those “investigative news stories” that compare the cost of building new coal to the cost of solar or wind are hiding the most brilliant and essential assets on our grid. Reopen Hazelwood now. (!)
Both sides of politics are choosing to destroy the family jewels in the hope of controlling global weather.
….
From the report by Stacy and Taylor, of the […]
New electric vehicles have big fat batteries, which will help solve the problem known as “charge anxiety” (let’s call that the Flat-Bat-Fear).
The new fat-batteries, however, have the small catch that they need two days to trickle charge. Hmm. Then there is the other catch that each slow charger (7kW) is equivalent to adding nearly three houses to the grid. Our Energy Minister Josh Frydenberg predicts there will be one million electric cars on Australian roads by 2030.
You might think this is slow motion train wreck, but we might avoid this if households opt for fast 50kW chargers. In that case we can do the train-wreck at top speed.
Each fast charger will apparently be “like” adding the equivalent of 20, count them, 20 homes.
This is fearmongering obviously — no one is going to want a fast charger when they could leave the car in the garage for 48 hours instead.
New Zealand report claims new generation electric vehicles threaten the power network
Ben Packham, The Australian
New Zealand’s biggest energy distributor, Vector, warned electric vehicle chargers “put a large electrical load on the network”, with even 2.4kW “trickle” chargers adding the equivalent of one additional […]
Electricity prices declined for forty years. Obviously that had to stop.
Here’s is the last 65 years of Australian electricity prices — indexed and adjusted for inflation. During the coal boom, Australian electricity prices declined decade after decade. As renewables and national energy bureaucracies grew, so did the price of electricity. Must be a coincidence…
Today all the hard-won masterful efficiency gains of the fifties, sixties and seventies have effectively been reversed in full.
Indexed Real Consumer Electricity Prices, Australia, 1955-2017.
For most of the 20th Century the Australian grid was hotch potch of separate state grids and mini grids. (South Australia was only connected in 1990). In 1998 the NEM (National Energy Market) began, a feat that finally made bad management possible on a large scale. Though after decades of efficiency gains, Australians would have to wait years to see new higher “world leading” prices. For the first years of the NEM prices stayed around $30/MWh.
But sooner or later a national system is a sitting duck for one small mind to come along and truly muck things up.
Please spread this graph far and wide.
Thanks to a Dr Michael Crawford who did the original, […]
What energy transformation?
The EIA Annual Energy Outlook 2018 is out. The hard heads at the US Dept of Energy crunched the numbers, assumed technology will improve, and modeled the outcomes. According to their best estimates (and even their “worst” estimates) thirty years from now, the main energy source for the US is natural gas and fossil fuels. Renewables grows from 5% to 14%, but coal, nukes, hydro stays about the same. When the Australian Greens say “we don’t want to be left behind”, the answer is “Exactly! So explore for gas! Use Nukes!”
The World’s largest economy will still be nearly 80% fossil fueled in 2050.
On the road, most people are still using gasoline cars, and here’s the kicker — electricity prices are still at about 11 cents per kilowatt hour. Weep all ye Australians, Brits, Germans and other who would be grateful if electricity only rose 10% a year, not 10% over 30 years.
How much does an interconnector cost from Townsville to Texas? 😉
h/t Paul Homewood who has quoted Mark Perry from AEI:
Despite all of the hype, hope, cheerleading, fuel standards, portfolio standards, and taxpayer subsidies for renewable energies like wind and […]
More bad luck for the renewables industry. Despite providing free energy from the sun and wind, electricity prices keep rising relentlessly, shockingly fast. Even doubling in wholesale costs in South Australia and Victoria.
It was supposed to be cheap to collect low-level-energy across hundreds of thousands of square kilometers. Who knew that subsidized, unreliable energy would induce volatile pricing, allow the players to game the system, create obscene spikes, drive out the cheapest providers, require expensive battery storage, more frequency control, more maintenance, just as much back up supply, $400 million dollars worth of extra diesel generators (and the rest) and extra long transmission lines? Who knew? — Probably thousands of engineers.
Spot the pattern? Every other nation with lots of renewables has expensive electricity and our forward market says there’s more price rises coming.
Australian electricity prices rising six times faster than wages are growing
Sydney Morning Herald
Electricity prices have jumped by six times the rate of the average pay rise, new figures reveal, as family wallets are increasingly squeezed by essential services such as education, utilities and fuel.
The most significant price rises were electricity, up 12.4 per cent, fuel up 10.4 […]
How much do we hate Lignite Gas?
Victoria is suffering the largest rises in wholesale electricity prices in the country, as it sits on large gas fields that it won’t touch. Why — geniuses hope to reduce global droughts and floods and sea level in 2100.
Robert Gottleibsen savages the state governments that conducted the renewables experiment without mentioning the real costs or the cheap alternatives.
If Victoria allowed its gas to be developed the energy scene in Australia would be transformed, as would the outlook for the nation.
But that’s not much consolation for those in vast areas of rural NSW and Victoria plus suburban Melbourne and small areas of South Australia who suffered blackouts or reduced power on Sunday night. It’s true part of the outages were caused by fuses, but the outages were too widespread. It’s another smokescreen.
If similar conditions are repeated on weekdays and/or extend over several days the blackouts will be devastating as a result of the political vandalism. Government spin doctors and others are desperately trying to conceal the truth about the damage governments headed by Victorian Premier Daniel Andrews, NSW Premier Gladys Berejiklian (plus her predecessors […]
The Mystery: The most resource rich nation on Earth has the highest electricity prices?!
Ask anyone and get confused: It’s poles and wires, gaming of the system by capitalist pigs, excessive taxes, privatization, and record gas prices. The CleanEnergy Council tells us that Australia has one of the longest electricity networks in the world — we need lots of poles! And so we do. But once upon a time Australia had the cheapest electricity in the world and we still had lots of poles. Not only were miles of poles and wires, there were also capitalist pigs, excessive taxes, and privatized generators. There were wild gas price spikes too, (during which we probably just burned more coal).
Evidently, something else has changed. Something seismic that wiped out all the bids below $50/MWh.
Perhaps it has something to do with the 2,106 turbines in 79 wind farms that on random windy days might make 4,325MW that didn’t exist in Australia in 1999 when electricity was cheap and our total national wind power was 2.3 megawatts?
Another clue might be the 1.8 million new solar PV installations, which theoretically generate 7 gigawatts of electricity at noon on cloudless days if all […]
Hope foreign readers are enjoying the spectacle of a first world nation destroying its competitive advantage with renewables. Hope that helps you avoid the same fate.
Praise the lord, states without coal don’t have to load-shed-industry (because they don’t have much left):
The South Australian Treasurer is bragging that SA didn’t have to shed any industry load on Friday, but the coal state of Victoria did. Pull the other one:
“In terms of supply we should be okay,” he [the SA Treasurer] said.
“Victoria I understand is about to load shed industry. So they’re not coping with the power supply.
“They are a coal-dependent state and they are having to take industry offline to support their households. In South Australia we’re not having to do that today.” — h/t A H
The Treasurer didn’t mention that SA shed the load already over the last two years by driving heavy manufacturers out of business, and out of the state. Let’s name some:
Gone from the SA power load: Mitsubishi, GMH, Plastics Granulating Services (Recyclers), Caroma (76 jobs) after 79 years in business, Penrice, Arnotts biscuits (120 jobs), Aldinga Turkeys (79), ACI Glass (60 […]
While geniuses are bragging that the Australian grid survived two normal hot summer days without falling over, they don’t mention the flaming spectacle of the cost.
Tom Quirk and Paul Miskelly, after a couple of suggestions from me, have calculated the full staggering electricity bill at $119m for SA and $267m for Victoria, making it nearly a $400 million dollar bonfire — for two days that were neither the hottest ever, or records for peak electricity use. See their work and details below.
To put this in perspective, a whole new gas plant could have been built for around $230 million. Instead of vaporising this money, Australians could have constructed one whole new gas generation plant, paid it off, and had money left over to give away free electricity.
Every household of four in Victoria just lost something like $170 of productivity for two days of electricity, and in South Australia, $280. Respectively, $45 per Victorian and $70 per South Australian. While businesses also share this burden, ultimately companies are made of people, and this is productivity lost to both states. The losers are shareholders, customers, and employees. Some will be interstate, but the pain flows back. The price is […]
UPDATE: MELBOURNE hospitals are enacting emergency procedures to prepare for the potential loss of power. Hospitals are switching off non-essential electrical equipment, including some lights, to minimize energy use. This is a “Code Yellow” alert asking hospitals to check their back up generators are ready. The Victorian Minister insists this is not about the “threat” of blackouts, but because hospitals need to be “good corporate citizens”. Pull the other one. At the very least, this is about reducing electricity bills. h/t Chris in Hervey Bay.
See further UPDATES on “The art of blaming coal” at the bottom.
How much fun can you have? The AEMO (Australian Energy Market Operator) projects that as temperatures hit 42C in Victoria, prices are forecast to rise over 100 fold. The AEMO is furiously busy issuing market notices.
The ABC tells us it is 42C, that Portland Alumina has reduced production, but for an ‘undisclosed price’ (why can’t taxpayers know what they are paying this group, not to produce aluminium today?) Meanwhile the AEMO has put the RERT plan into action: “Under the RERT scheme, AEMO has contracted 884 megawatts of “demand side response” across Victoria, NSW and South Australia.” Translated, […]
Watching the AEMO dashboard as a hot summer day hits
Is this the summer crunch-time that the the National Grid managers have been fearing?
Today things are not running smoothly in the green states of Victoria and SA where prices this minute have hit $14,000 per MW hour, or $14 per KWh. These are wholesale prices. Right now heads of major industries are watching the dashboard, turning off everything they can turn off, or switching on the diesel generators, or counting hundreds of thousands or even millions being added to their bills if production cannot stop.
Demand Management schemes (a form of load shedding) will be running to reduce demand — air conditioners will be remotely switched down.
How much of the productive brain power of Vic and SA is distracted from more useful tasks today?
The AEMO has put out an Actual Lack of Reserve Notice (LOR1) saying that Victoria is 300 MW short: “The contingency capacity reserve required is 1100 MW. The minimum reserve available is 815 MW”. Another notice of a “non-credible contingency event” (a code for “something broke”) reports that a busbar, transformer, and line have tripped or opened in Victoria, unplanned.
Victoria
…
[…]
The shape of normal AC Electricity: 50Hz (230V) and 60Hz (110V)
Nobody says much about FCAS in public — but it’s become a hot topic among Australia’s energy-nerds and electricity traders. It never used to be a big deal, because we got it at very low cost from huge turbines — from coal, hydro, and gas. Suddenly, it is costing a lot more. As I discovered below, in one month FCAS charges in South Australia rose from $25,000 to $26 million. Wow, just wow.
What is FCAS?
FCAS means”Frequency Control Ancillary Service”. With an AC (or alternating current) system, frequency is everything — the rapid push-pull rhythm that is the power. FCAS is a way of keeping the beat close to the heavenly 50Hz hum (or 60Hz in America and Korea). Network managers cry when things stray outside 49.85Hz or 50.15Hz. So controlling the frequency is a very necessary “other service” supplied by traditional generators, but not so much from intermittent renewables. Large spinning turbines “do” FCAS without a lot of effort. And the cost used to be a tiny fraction of the total electricity bill, but it is rapidly rising in Australia, thanks to the effect of the […]
Three ways to destroy a perfectly good electricity grid
Council for the National Interest (CNI)
Royal Perth Yacht Club 2:30 til 4:30
Australia II Drive, Crawley Bay, Nedlands.
Free Entry
UPDATE: A great success and a lot of fun. These events are always so well run. If you live in WA check out CNI. A smart, polite and friendly crowd.
9 out of 10 based on 110 ratings
Some people in Sydney will be paid to not use electricity in peak periods
Instead of a big blackout the plan now is to have lots of little “by choice” blackouts at the appliance level. It’s smarter than crashing the grid, but ponder what we’ve swapped –once electricity was cheap and “all the time” and now after this discount it will still be more expensive but also “not there when you need it”. Let’s all cheer for progress.
Cashing in for slightly less obscene electricity bills? How low is that bar on our expectations.
Sydney households to cash in for turning off appliances
Houses and business in some high-growth Sydney suburbs will be offered payments to dial down or switch off appliances during peak demand periods under a scheme being trialled by the state’s biggest distribution network.
Ausgrid is planning the demand management trial for up to 10 suburbs across the city — including Alexandria, Redfern, Auburn, Kingsford and Waterloo — over summer in a bid to reduce the peak load on its network.
It is expected to cost around $1.5 million in payments to households and business and to involve up to 1300 […]
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