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 […]

Solar Homes use more grid electricity than non-solar homes

There are probably more solar panels in QLD than anywhere else in the world. Back in February last year, the boss of the Queensland state power company announced the awkward result that households with solar panels were using more electricity than those without. Apparently people without solar were turning off the air conditioner because electricity cost too much, but the solar users didn’t have to worry about the cost so much.

Queensland solar homes are using more grid electricity than non-solar, says Energex boss

Feb 2016: Solar-powered homes in south-east Queensland, which boasts the world’s highest concentration of rooftop panels, have begun consuming on average more electricity from the grid than those without solar, the network operator has found.

Terry Effeney, the chief executive of state-owned power distributor Energex, said the trend – which belied the “green agenda” presumed to drive those customers – was among the challenges facing a region that nevertheless stood the best chance globally of making solar the cornerstone of its electricity network.

From October 2014 in Queensland, the average grid electricity use of solar homes started to exceed the average use of people without solar power and stayed higher for the […]

Australia “invented airconditioning” but can’t keep them running

James Harrison (click to enlarge)

Peter Hartcher points out that the country that invented refrigeration and thus airconditioning can no longer guarantee to keep them working.

In 1854 [James Harrison of Geelong] invented a commercial ice-making machine. He expanded it into a vapour compression refrigeration system, the basis for modern refrigeration.

“That’s right – an Aussie invented the fridge and it’s first real use was making beer,” remarked the US technology website Gizmodo. “You have to love this country.”

And one more big coal generator shuts down soon in Victoria:

In the next few weeks 4 per cent of Australia’s power supply will vanish when Victoria’s big Hazelwood power station shuts down, clapped out after 50 years of turning coal into electricity. It’ll be the ninth coal-fired power station to close in the past five years. New solar and wind plants are being built, but they are intermittent, and that means they are unreliable.

“Taking out Hazelwood is taking out a big buffer,” says Tony Wood, energy program director at the Grattan Institute policy research centre in Melbourne. And, as we’ve just witnessed, Australia’s power system lacks buffers. “Managing intermittency is […]

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 […]

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 […]

Japan building 45 HELE coal plants, Australia 1 (maybe)

Japan will use Australian coal to build 45 modern coal fired plants:

Japan is the largest overseas market for Australian coal producers, taking more than a third of all exports.

Why coal? It’s cheaper than gas:

Tom O’Sullivan, a Tokyo based energy consultant with Mathyos Global Advisory, said in the wake of the Fukushima nuclear disaster in 2011, Japan started importing more liquefied natural gas (LNG) from Australia.

But he said the move to more coal fired power was because coal was cheaper than LNG, and the energy security was priority for the government.

The new ultra super critical coal plants burn hotter and are more efficient (hence, high energy, low emissions = HELE).

Finally, after blackouts and scandalously high electricity bills, Malcolm Turnbull is just starting to float the idea of building, maybe, one. China has them, even Indonesia will get one before us.

Japan needs to import 95% of its energy. Australia is the largest exporter of coal in the world, and has the largest known uranium resources in the world, but we voluntarily wear a hair shirt to appease GAIA. We sacrifice our cheap energy advantage for fear that loud ill-mannered […]

Wind turbine manufacturer admits liability for noise damage. If word gets out…

These are Enercon wind turbines in Germany, Lower Saxony. Image: Philip May

This could be a watershed — if word gets out that turbine manufacturers will not even contest claims of noise damage, there could be many more claims around the world. There are rumors these cases are often settled out of court with confidentiality agreements, but who would know?

In an update to the Irish court case we discussed last month, the latest news confirms that the wind turbine manufacturer has admitted liability without contesting it. The court will be deciding damages in April. As I deduced at the time, the wind industry was using desperate wordsmithing to minimize attention on the story. The news item related to it even disappeared from the Irish Examiner. The turbine industry must be hoping no one notices this story.

Stop These Things has an update:

Wind company admits nuisance damage to neighbours Irish Farmers Journal Paul Mooney 5 January 2017

High Court to determine compensation for seven families in April hearing.

9.2 out of 10 based on 91 ratings […]

South Australia: blackout costs $367m, normal electricity twice the price, reserve shortfalls coming in January

Comforting to know that hundreds of millions were saved because the SA blackout hit at 4pm:

Today in SA: blackout cost $367m but could have been worse

The results of a comprehensive survey of Business SA members of the impact of the September 28 blackout released today also found many did not have business interruption insurance and, of those who did, more than half were not covered for losses resulting from the outage.

The overall financial impact on South Australia was a loss of $367m but, in occurring late in the trading day, the effect of the blackout was lower than it would have been if it had happened first thing in the morning.

“Considering 70 per cent of respondents had power restored within 24 hours we are looking at a cost of close to $120,000 per minute for business in the state,” the report found. –The Australian

Only 12% of businesses surveyed had backup generators.

Who wants electricity at twice the price? Judith Sloan:

The Australian Energy Market Operator says average electricity prices in South Australia next year will be 1.7 times higher than in NSW and 2.4 times higher than […]

SA Blackout: Three towers, six windfarms and 12 seconds to disaster

Finally, the gritty info we’ve been waiting for: The Australian Energy Market Operator’s (AEMO) preliminary report. The message here is of how a combination of both transmission towers failing and probably the auto-shut-off of wind farms combined in 12 seconds to crash the South Australian system. It’s looking awfully bad for the wind industry. The AEMO pins the crash on the sudden reduction from the wind generators, but stops short of declaring why they dropped power so suddenly. Was it the auto-shut-offs, lightning strikes, a software glitch, turbine failure, or was it a key transmission line that broke? Reneweconomy is about the last-man-standing trying to defend the wind industry in Australia. Giles Parkinson argues it was the third transmission line that took out some wind generation.

Even if the third transmission tower took out two “farms”, the fragility of wind-dominated grids is on display. And above and beyond this, South Australian electricity is a management debacle. The only question is, which mistake was the worst: Is this is epic indulgence of running the wind farms flat out in a storm only to trigger a blackout with their auto shut offs? There’s a compelling case, but there are tenths or less […]

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, […]

Psychoanalysis shows Nuclear Power stops countries meeting climate targets

Only higher education could produce something this silly.

The University of Sussex gets the credit for a paper that argues that countries that are committed to nuclear energy are progressing slower towards the holy grail of meeting “climate targets”. This discovery coincidentally comes exactly as the UK Hinkley Point “hangs in the balance”. What were the odds?

The Newspeak starts in the headline — what’s a “climate target”. My personal climate target is to move into the tropics each winter, but the EU climate target is not about reducing temperatures over Spain, but about “more windmills”. The climate target of the EU has apparently got nothing much to do with the climate:

…the EU’s 2020 Strategy — to reduce its greenhouse gas emissions by 20%, increase the share of renewable energy to at least 20% of consumption, and achieve energy savings of 20% or more by 2020…

They cluster countries in to 3 groups and discover that the countries that plan to maintain or expand nuclear energy (eg Bulgaria, Hungary and the UK) are not cutting emissions as fast as countries that have no nukes (Denmark, Ireland, and Norway).

Could it be, I wonder, because […]

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 […]