Library filed under Energy Policy from Australia
In dry, technical language the Australian Energy Market Operator has warned Queensland’s Premier, Annastacia Palaszczuk, that her renewable energy policy could take the state down the South Australian road, where they have the misfortune to pay high prices for unreliable electricity. The Palaszczuk policy would massively increase Queensland’s reliance on intermittent renewables and erode the value of state assets such as black coal-fired generators, which provide baseload power. And all this for no discernible effect on climate change. It is a profoundly irrational course.
“The government is talking about using the Clean Energy Finance Corporation to subsidise a coal-fired power station,” he said. “We subsidise wind to make coal uneconomic so now we are proposing to subsidise coal to keep the lights on. Go figure.” “Wouldn’t it be better to abolish subsidies for new renewable generation and let ordinary market forces do the rest?”
Pushing ever more renewable energy into the national electricity network is negligent without new investments in energy storage, Malcolm Turnbull has declared, stepping up his attack on Labor's "complacent" and "ideological" clean energy policy.
Malcolm Turnbull has blasted Labor’s renewable energy “horror show” by seizing on blackouts in South Australia to warn of outages across the country under the “insanity” of Bill Shorten’s 50 per cent renewables target. ...“How many South Australians are worse off because of the Labor Left ideological approach to power? I tell you: every single one."
“It’s a demonstration that ad hoc state-based renewable energy targets have gone too far — when reliability can’t be maintained on a day the likes of which SA faces numerous times every single summer.” ...“It’s time Labor both federally and at a state level recognised its high renewable energy targets are putting at risk energy security and affordability.”
The snub to the 2020 Renewable Energy Target by one of the country's biggest business electricity retailers has revived calls for investment in new renewables projects to be halted and exposed the risk of the consequences for consumers of missing the goal. ERM Power on Tuesday revealed it had elected to pay a $123 million penalty charge to discharge its 2016 liability under the RET scheme, rather than backing renewables projects as intended under the RET regulations.
On Monday, deputy prime minister Barnaby Joyce refused to commit the government to maintaining the RET. Tony Abbott and South Australian senator Cory Bernardi have both publicly argued that renewable energy targets should be scrapped.
On Monday the Australian quoted several unnamed conservative MPs who want to ditch the RET, arguing it would help sharpen the Coalition’s attack on Labor’s plan to lift renewable energy to 50%. Tony Abbott and the South Australian senator Cory Bernardi have both publicly argued for the scrapping of renewable energy targets.
Now is the time to debunk Labor’s myth-making and expose the true cost that its energy policies will have on Australian households and businesses.
The Australian Energy Market Operator (AEMO) released its third report today with its preliminary conclusions on the causes of the “Black System” that plunged the entire state into darkness at 4.18pm on September 28. While tornadoes were found to have taken down three transmission lines ahead of the blackout, it was the loss of power from the state’s wind farms that is thought to be one of the primary causes of the event.
“While emissions-reduction policies are politically fashionable, the obvious result of the EU’s policies has been ... growing backlash at the soaring cost of the renewable-heavy mandates. The backlash is also coming from rural landowners who are inflamed by the encroachment of large wind-energy projects on their neighbourhoods. This backlash has forced European policy makers to begin scaling back their plans.”
BHP Billiton chief executive Andrew Mackenzie is furious that another failure of the electricity network in South Australia resulted in the prized Olympic Dam mine being without power for more than four hours overnight.
Prime Minister Malcolm Turnbull accused some state governments of putting too much emphasis on generating electricity from wind farms, putting Australia’s energy security at risk and “distorting the national energy market.”
The nation’s renewable energy strategy has officially blown a fuse. Everything is back on the table after an interim report found last week’s storm-induced statewide blackout in South Australia was the result of a dramatic, sudden loss of wind power generation.
The power failure has cost billions in losses to households and business. It has pitted state and federal governments against each other over fragmented ¬renewable energy targets and left green groups scrambling to shift the blame from renewables to climate change. Most of all, the statewide blackout has left South Australia looking foolish and reminded everyone how security of electricity supply easily can be taken for granted.
It appears investors have been spooked by policy uncertainty, despite an RET subsidy of almost $80 a megawatt hour, which comes on top of the $40-$60 a MW/h that generators are typically paid for participating in the National Electricity Market.
If Frydenberg does not give EPBC approval for Dundonnell he can expect a fiery backlash and accusations of turning his back on renewables and new economy jobs. If he does give EPBC approval Frydenberg will be accused of grand-scale environmental vandalism against the Victorian brolga, which is listed as threatened and nests at the proposed wind farm site.
The confidence that everyone had expected to return to the renewable energy sector following the demise of Tony Abbott, is yet to come to fruition. Investors spent just $15 million since February 2014 on big wind, solar or other clean energy projects that were not otherwise supported by government programs.
Investment in large-scale renewable energy in Australia remains stagnant almost two years after the Abbott government began a review of the sector, according to an annual survey by Bloomberg New Energy Finance. Investors spent just $15 million since February 2014 on big wind, solar or other clean energy projects.
South Australia has increasing reliance on wind as a power crisis looms. The national energy market regulator has warned that South Australia is likely to face continued price volatility and “significantly lower” electricity availability with the retirement of two gas and coal power stations and an increased reliance on wind.