Victoria plans to reduce electricity prices by copying state with most expensive supply in the world

In a genius move, Victoria, which has “soaring” electricity prices, now announces plan to copy South Australia where people pay more for electricity than anywhere:

The Andrews government this morning unveiled a new renewable energy target with a commitment to power up to 25 per cent of the state from renewables by 2020 and 40 per cent by 2025.

The government has backed the construction of two large scale solar farms in regional Victoria which will provide another 140MW to the state’s supply, and has set up a reverse energy auction system to bring forward an additional 650MW to the state’s supply.

Meanwhile the trams will run on sunshine.

Legislation creates savings, how?

Victorian households will allegedly each save around $30 annually on power bills under the new plan, while medium sized businesses have been projected to save up to $2400 a year under the legislation which will be introduced to parliament today.

It’s almost like Victoria plans to make electricity from legislation (hey, it’s renewable, and will never run out). By making electricity shockingly expensive, Government ministers can talk of “savings”, even though prices will be far higher than the average price […]

Australia, Denmark, Germany vie to win Highest Global Electricity Cost! (It’s the Nobel Price Prize?)

It’s not even close: If South Australia seceded it would have the highest electricity price of any nation on Earth.

Australian Households pay highest power prices in the World, AFR.

South Australian households are paying the highest prices in the world at 47.13¢ per kilowatt hour, more than Germany, Denmark and Italy which heavily tax energy, after the huge increases on July 1, Carbon + Energy Markets’ MarkIntell data service says.

When the eastern states’ National Electricity Market was formed in the late 1990s, Australia had the lowest retail prices in the world along with the United States and Canada, CME director Bruce Mountain said.

The Markintell report graph:

Hmm — odd coincidence of Price with Wind Energy Penetration:

Wind energy is “free” but countries with the most wind power are also the most likely to get to the top of the Prize Pool for exorbitant electricity. Wind energy penetration is highest in Denmark (1st), Portugul (8th), Ireland (6th), Spain (11th), Germany (3rd). Conversely, renewable energy penetration is low in places at the tail end of the price curve like Luxemburg 6%, Estonia 15%, Hungary 7%, Lithuania 15.5%. In the low mid price […]

SA Solar Thermal plant is a copy of US plant that was out of action for one third of its life so far

Crescent Dunes, Solar Thermal Plant, USA. | Wikimedia Author, Amble.

A company called SolarReserve is planning to build the new Aurora 150MW solar thermal plant at Port Augusta, which is apparently a copy of their Crescent Dunes plant in the US. But that project has been offline for most of the time since last October. The whole SA government is meant to be running 24/7 off “solar power”, which allegedly only has about 8 hours of energy stored up (as heat in the molten salt block). So an 8 month break will be a bit of problem for the SA government (except of course, we all know that the real baseload backup here at 4 or 5am everyday, and most of the day in winter, is ultimately the very fossilized gas and coal.) Since the project only began working in Sept 2015 it managed to operate for all of one year and one month before it went offline for 8 months due to a leak. The SA State Energy Minister is not concerned saying it was a construction issue and SolarReserve “have learnt from that”.

The 150MW myth: most of the time it will be less, a lot less […]

SA reduces blackouts by closing Holden Factory

It’s a creative South Australian solution to an unstable, expensive grid: close large factories and have less blackouts. If they can close enough, it’s guaranteed to succeed:

Holden closure will help Energy Market Operator manage SA’s blackout risk, report finds

Part of the soon-to-be vacated Holden factory in Adelaide is about to be transformed into a temporary power station to help stave off load-shedding blackouts this summer.

But the car industry’s closure will help the authorities manage the risk of blackouts in another way.

The exit of a once powerful manufacturing sector will see the state using less electricity, particularly during the all-important summer peak.

The information is contained in the latest Electricity Forecasting Insights published by the Australian Energy Market Operator (AEMO).

From a story last year:

The closure of Holden’s Elizabeth plant is expected to result in 13,000 job losses across the company and its supply chain.

Energy use in SA is set to fall from 3,116MW to 3,035MW in summer peaks. Even so, they’ll still need more temporary generators (time to cut more jobs?):

Nevertheless, AEMO is forecasting widespread shortfalls of reserve power over […]

Australians paying $600 per household to subsidize wind and solar

Australia is a wonderful living experiment for nations worldwide of how a people with more energy resources per capita than anywhere else in the world can sabotage a perfectly good electricity grid in the hope of appeasing the Weather Gods.

At the request of Senator Malcolm Roberts, Alan Moran slices up our “Chief Scientists” report (known as the Finkel Review) and gives us some home truths. Electricity costs have doubled in Australia, Finkel’s plan would take what isn’t working, and do more of it — in the process pretty much destroying one fifth of our manufacturing base, costing us thousands of jobs, and adding almost $588-$768 per household annually to energy bills. Let’s ask Australian voters if they want cheap coal power or if they’d rather spend $600 a year to make the weather unmeasureably nicer in 2100? Why don’t we have a plebescite on that?

In other basic truths Moran points out that while Finkel seems to think new coal fired plants are uneconomic, everyone else is building them around the world. Old plants don’t have to be blown up on their 50th Birthday either. They can be maintained instead, like lots of other perfectly good 50 year old […]

Japan: Fifty solar PV companies already gone in 2017 as subsidies end. Coal soaring.

What’s the word for competitive-but-needs-a-subsidy? Broke…

One hundred solar PV companies are forecast to collapse in Japan this year alone.

Up to 100 solar PV firms in Japan could face bankruptcy this year, with more than double the number of firms going bust in the first half of this year than the same period in 2016.

According to corporate credit research company Teikoku Databank, which surveys companies across various industries and has produced its third report on solar PV company bankruptcies, 50 companies in Japan’s solar sector have already gone out of business in the first six months of 2017.

While the market overall has rapidly expanded from the launch of the feed-in tariff (FiT) in July 2012, Teikoku Databank acknowledged that there has been a slowdown in deployment in the past couple of years as the government successively made cuts of 10% or more on an annual basis to the premium prices paid for solar energy fed into the grid.

Bankruptcies have doubled in the industry since last year.

Meanwhile Japan plans to build at least 45 HELE Coal Plants.

Check out the map of “coal in versus coal out” in Japan. For […]

Electricity cost train-wreck arrives in Australia

Something very “seismic” has happened to our electricity prices.

Paul McArdle of WattClarity goes through each state looking at quarterly trends and prices, and remarks that things are going “off the chart”. We had some electricity crises in Australia in the last 12 months, and 2016 was a significantly more expensive than all previous years bar the major drought year of 2007. But ominously, prices haven’t come down in what should be a “normal” quarter. In Tasmania there was a crisis last year when dams ran dry, and the undersea Bass cable broke. But this quarter, prices are only $3.20/MWh lower than the crisis levels of Q2 2016 despite water in dams and a working cable to Victoria. Something has gone seriously wrong with our electrical grid and market. In both Victoria and South Australia prices are higher on average than any previous April-June quarter in the 19 year history of the National Electricity Market. In Queensland and New South Wales, prices are at the “second highest”.

McArdle goes to some length to explain that this is not “one factor”, which seems obvious and fair — Its the combination of the closure of Hazelwood and Port Augusta coal generators; the […]

Wind disappears in South Australia, costing wind-industry millions, BOM blames climate change even though models predicted faster winds

The wind fizzled out over the South East slab of Australia during June. Predictably, that meant the wind industry lost millions, and wholesale electricity prices went up. When the Bureau of Meteorology (BOM) was asked where the wind had gone, Darren Ray, expert climatologist, said it was due to a high pressure system over the bight, which, he explained, was linked to “climate change”. Thus, as the world warms, wind farms will be progressively more useless in South Australia. Perhaps the BOM should have mentioned that before SA became dependent on wind farms? I don’t think he had thought this one through.

Perhaps the BOM is hoping that the masochistic sacrifice of South Australia will stop global warming before global warming stops the wind farms?

You might think that if the global climate models could see this coming they would have suggested that wind farms weren’t a good idea. Or maybe, since climate models predict every equal and opposite outcome in unison, the models are always right post hoc, but not so useful in projections?

Climate models predict climate change causes faster and slower winds over Australia

In 2017, Darren Ray, BOM expert, said the decrease in winds was due […]

Coal Boom: 1600 new plants in 62 countries around the world – increasing 43%

“End-Coal” Global Coal Tracker does a magnificent job of showing how essential coal is around the world, and which countries are pathetically backwards in developing new coal plants. It’s probably not what the “CoalSwarm” team was hoping to achieve, but this map is a real asset to those of us who want to show how tiny Australia’s coal fired assets are compared to the rest of the world. The site itself is a fancy-pants high gloss major database and website that also shows how much money is in the “anti-coal” movement. Oh, that skeptics should have even 2% of these funds. Heffa Schücking, the director of Urgewald, which created the maps, calls it a “cycle of coal dependency”. Normal people call it “freedom and wealth”.

Chinese companies build coal plants — NY Times

These Chinese corporations are building or planning to build more than 700 new coal plants at home and around the world, some in countries that today burn little or no coal, according to tallies compiled by Urgewald, an environmental group based in Berlin. Many of the plants are in China, but by capacity, roughly a fifth of these new coal power stations are […]

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 […]

India, China: Clean dust, pollution off solar panels every two months, and still lose up to 35% of production?

How often do you clean your solar panels? Spare a thought for the poor sods in the Middle East, India and China, where migratory dust coats solar panels and hangs around in the air, blocking incoming sunlight. Researchers in India who cleaned their panels every few weeks and discovered that they got a 50% jump in efficiency each time. If the cleanings happened every two months, the total losses were 25 to 35 percent.

The article very much blames human pollution for half the capacity loss, but in the detail, the press release admits that 92% of the dust on each panel was natural. Apparently human made particles are smaller and stickier which makes the 8% human-emitted-dust equivalent to the 92% of other dust.

Either way, real pollution and natural dust will slow the clean-green-energy future in India and China until we get auto-cleaning panels or roof slaves. Unfortunately, cleaning panels also risks damaging them, so the price of solar power really needs to include the cost of windscreen-wipers/slaves, electricity losses, damage to panels, and damage to the panel cleaners too.

But solar panels will definitely power all the other parts of the world that are near enough to the […]

Shocking electricity price rises coming in Australia: Not a failure of energy policy but a complete “success”

The numbers are breathtaking. On the east coast of Australia (which means most households in the nation) they are looking at 15 – 20% increases next month on electricity bills which are already at bleeding point.

Get a grip on these numbers:

Charis Chang, News.com —

POWER prices are set to rocket after three major retailers announced increases of up to 20 per cent and $600 a year for the average customer in some states.

Origin, EnergyAustralia and AGL have all announced price increases for electricity and gas starting from July 1.

Small businesses may be the hardest hit, especially Origin customers in South Australia, which will see prices rise by a whopping $1453 a year when increases to gas and electricity bills are combined.

The biggest increase for residential customers will be for AGL customers in ACT, who will pay an extra $579 a year for a combined electricity and gas rise.

In NSW, residential EnergyAustralia customers will see electricity prices increase by up to 19.6 per cent. Origin Energy customers will get a 16.1 per cent rise.

The price hikes will take effect […]

Finkel report destroys baseload coal power economics

Demand enough renewables and you might as well ban coal

There’s a lesson Australia needs to learn from South Australia. When intermittent renewables reach a certain percentage of daily average supply they make baseload power unfeasible. The situation develops into an impossible dead end that can only be solved with container-ships of cash.

The intermittent supply of wind and solar is the immoveable problem. It eats into the daily chart of the cheapest stable electricity supply — which is coal fired. Coal can’t be ramped in and out in minutes. It is a creature that runs best non-stop, efficiently, smoothly, at a high capacity factor (meaning it works best when it is producing around 90% of it’s design limit continuously).

Tom Quirk points out that sometime after these intermittent renewables hit 30% of the average daily supply, as they have in South Australia — locally sourced coal power becomes uneconomic. There are times during the daily cycle when renewables are providing almost all the demand. There is little demand left for the massive coal turbines to supply, so they spin on pointlessly, but costs remain, and profits are zero.

In […]

Surely not: Climate revolt and another Australian PM?

It’s hard to believe Turnbull could fall for this one twice.

Dennis Shannahan warns us:

There is a revolt in the Coalition ranks and there are those prepared to say that Finkel is dead or worse.

More than 20 Coalition MPs spoke against the Finkel report last night, including Tony Abbott, all concerned that the priority is for cutting emissions and not electricity prices.

History repeats?

David Crowe on what he’s heard about the same liberal party room meeting:

Former prime minister Tony Abbott was a sharp critic of the clean energy target and made interjections throughout the ­discussions.

“He was the most sceptical about it — he said it wasn’t going to cut prices or provide certainty for consumers,” one Liberal said.

“He was probably the strongest critic throughout the whole ­meeting.”

One of the senior Liberal figures who took notes on the meeting said last night that about 32 people spoke and about one-third of them were not in favour of the Finkel proposal, while one-third supported the clean energy target and another third asked questions or had suggestions for changes. Victorian Liberal MP Russell Broadbent, […]

Finkel: Turn the whole country into South Australia by 2030 — 42% “renewable”

In one of the most massaged spin-doctor sales messages in Australian history, the Finkel Report is here to “take the politics out” and solve our energy instability and out-of-control prices. But it’s actually an aggressive green-left weather-control program where cost and stability are secondary to the unspoken but main aim which is to slow storms in 2100. If Finkel were really aiming for stability and price control he’d let the free market run, get the government out of our electricity grid and look at the evidence that shows that solar-panels and wind farms don’t, won’t and can’t work as global air-conditioners for us or our grandchildren.

Australians, read this line and weep:

“Modelling for the Review estimates that by 2030, 42 per cent of electricity demand will be met by renewable generation.”

This is where South Australia is currently at, but it has a lifeline to coal power in Victoria whenever it needs it. What happens when the whole National Grid needs a lifeline? Pull out your wallet…

How much does an undersea cable to New Zealand cost? It’s only 2,000km.

For the same price we might be able to afford a new ultra-supercritical coal plant and catch […]

Another glorious solar scheme fails ignominiously, “fast clouds”, “rusty pipes”, dumb decisions

Another award winning solar project collapses: it was a $105 million dollar scheme. One company, Areva, lost about $50m and so did the taxpayer. Everything went wrong, management, planning, cheap poor quality steel from China, industrial dispute that left 80% of the pipes rusting on a dock. Three thousand solar reflectors are sitting unused in what was a potato paddock in Dalby. Nobody wants to buy them. They’re obviously worthless. CS Energy is state owned power utility, and it spent $50m but pulled to pin to save wasting another $50m.

In 2011 Julia Gillard raved about how it was going to save 35,000 tons of carbon.

“Ms Gillard says the project could be one of many under the new carbon tax scheme.

“With the clean-energy future I want for our nation, I want it to be a norm,” she said.”

Fans of renewables will cite the management problems as the reason for the failure, not some inherent problem with solar. But the “Clean Energy Culture” is the problem — the same pathetic, uninformed and corrupt decision-making that subsidizes solar so unnecessarily also creates the same dud decisions in management, legal, and industrial relations. The environment […]

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 […]

Hazelwood Countdown: 53 years old and making more electricity than Australia’s entire wind industry

Three days to go: The Hazelwood shut down begins

The situation in Australia right now:

The total fossil fuel output compared to total wind power generation, NEM, Australian electricity market, 21 March 2017

One old coal plant makes more electricity than all the wind farms

Guest Post by TonyfromOZ and Jo Nova

I’ve been watching the output of all eight generators at Hazelwood closely all month and comparing it to the total wind farm generation across the National Electricity Market (NEM). The old warhorse is a remarkable engineering and economic success.

I’ve kept a total of the power output each day from midnight to midnight and a running cumulative total. So far, the running total output from Hazelwood has always stayed ahead of the total from wind farms. So this 53 year old coal fired plant that is being shut down next week has produced more energy than the 43 wind plants on the National Energy Market. Even if we could store the energy from the wind farms, it still doesn’t add up to the same as one very ancient coal plant. The shut down starts in three days time on Friday March 24th.

Over […]

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 […]