SOUTH Australia will this weekend overtake Denmark with the highest electricity prices in the world.
The South Australian Labor government’s mad rush into
renewable unreliable energy, particularly wind power … has helped generate a surge in South Australian electricity prices.
South Australian businesses face wholesale electricity prices of between $87 and $90 per megawatt hour, compared with $37-$41 in Victoria and $43-$48 in New South Wales.
In South Australia, wholesale prices are regularly spiking to the market-allowed maximum of $14,000 per megawatt hour. In July 2016, South Australia’s wholesale price spiked above $13,000 per megawatt hour 32 times! Reliance on weather-dependent wind and solar power is responsible for these absurd prices.
SA already gets more than 40 per cent of its power from intermittent renewable sources, mostly wind.
ARTIFICIAL MARKET DISTORTION (“RET”)
WIND and SOLAR projects are primarily funded through subsidies — Renewable Energy Certificates.
The Federal Government’s Renewable Energy Target is currently 23.5% green power by 2020.
SA is already easily ahead of the national target, and likely to be for some time.
The subsidy is imposed by the Federal Government, but paid for by power retailers. This forced cost of green power eventually paid for by power users.
Because wind farms make money from these subsidies, they can afford to underbid coal and gas into the wholesale electricity market.
To be financially viable, wind and solar generally require prices for their power that are higher than what other existing power generators receive.
For a while, they helped stimulate competition and put downward pressure on prices in a not-particularly-competitive (aka artificially distorted) market.
Things have started changing rapidly in the past year. This abundance of cheap wind (in a market sense) has helped contribute to the closure of a coal-fired power station and the partial mothballing of a gas plant.
The state now survives on wind, solar, gas, diesel (and perhaps even an offshore Turkish “power ship” if the SA grid destabilises further, especially with the closure of neighbouring Victoria’s “Hazlewood” coal-fired power station which supplied 25% of SA’s baseload power via a giant extension cord).
UNRELIABLE ENERGY = WORLD RECORD POWER BILLS
THE PROBLEM is, the wind doesn’t always blow and the sun doesn’t always shine. The high peaks in South Australia’s energy usage don’t always match up with a large chunk of its increasingly intermittent supply.
If the demand for electricity is low – on a public holiday, say – while the wind is blowing and the sun is shining, the price of electricity in South Australia will be low. Conventional generators will make losses, while the market losses of the renewable generators will be (artificially) covered by their sale of Generation Certificates.
If the demand for electricity is high – a heat wave on a working day, say – and it is a still, overcast day, the price of electricity in South Australia will soar, because it will be mostly produced by high-cost, back-up, peaking generators.
The high price of electricity in South Australia is eating away at our economic competitiveness. The probability that we will become, sometime in the distant future, a “low carbon electricity powerhouse” looks extremely low.
Greg Sheridan puts it brilliantly about windfarm-obsessed South Australia:
South Australia, truly the Athens of the south. SA shows that, like Greece, economic misfortune will not drive it to good policy. A state with chronic unemployment, disinvestment and deindustrialisation is determined to have the most expensive and unreliable source of power in Australia, if not the Western world, providing maximum disincentive to any investment other than a socialist enterprise backed by the Australian taxpayer. This is what you get from modern centre-left governments — identity politics, green gestures, economic failure.
NO BUSINESS, big or small, has been spared SA’s skyrocketing power prices.
But, perhaps the most symbolic case of a South Australian business shutting its doors due to soaring electricity costs is that of the very green, ethical, eco-friendly, planet saving recycling business “Plastics Granulating Services (PGS)”, based in Kilburn in Adelaide’s inner-north.
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.
“It’s where the cash went out of the business, and without the cash, we couldn’t service what we needed to service,” he said.
“We process about 10,000 tonnes of plastic waste [and] that’s now currently turned off, so South Australia won’t be recycling 10,000 tonnes [of plastic],” he said.
“To scope 10,000 tonnes for you, 10,000 tonnes is 15 per cent of the Australian market [of low-grade recycled plastic] … so Australia has lost 15 per cent of its supply.
38 YEARS of hard work over. 35 workers out of a job and 10,000 tonnes of plastic that will now not be recycled, thanks to SA’s mad obsession with windmills, solar panels and their associated economy-wrecking policies.
It is astonishing that a Government should deliberately create such an expensive and unreliable power supply – destroying the cheap and reliable one it had – without even being able to explain just how much difference any of this would make to the world’s temperatures.
This is ideology gone mad. How often must it be said that what South Australian Governments have done to their power system at such vast expense MAKES NO DIFFERENCE TO GLOBAL WARMING ANYWAY.
The brutal closure of PGS – yet more evidence of virtue-signalling
global warming climate change policies causing far more damage, right now, than any slight warming could ever do by 2100.
SA Fuel Poverty Related :
- THE $Trillion Windmill Industry Is The Greatest Scam Of Our Age | Climatism
- The Renewable Energy Target: useless, expensive, mad | Herald Sun
- How green power has killed South Australia | Herald Sun
- Liberals would let Federal Government set SA’s renewable energy target | Adelaide Now
- South Australia power prices to rise to highest in the world on Saturday, energy expert warns – ABC News (Australian Broadcasting Corporation)
- JUST 1 IN 6.6 MILLION CHANCE TO STOP WARMING | Herald Sun
Climatism SA Hot Links :
- Turkish ‘Power Ship’ Proposed To Keep The Lights On In South Australia! | Climatism
- Wind Power Chaos Promises to Deliver Mass Summer Blackouts Across Australia | Climatism
- ‘Unreliable’ Power Australia – Steven Marshall Should Have Listened And Blown Up A Wind Farm | Climatism
- South Australia Blackout Report : Green Energy Failure | Climatism
- When The Wind Don’t Blow, The Lights Don’t Glow! | Climatism
- Doomed to the Dark Ages: No Solution for South Australia’s Wind Power Blackouts | Climatism
- ‘Unreliable’ Power Australia – Green Hypocrites Exposed By South Australia Storm | Climatism
- Blackout Blues: Wind Power Obsession Makes South Australia an International Joke | Climatism
- Adding More Solar And Wind Power ‘Doubles’ CO2 Emissions | Climatism
Turnbull (Australian “conservative” PM) green policies make energy unaffordable…
Turnbull policies make energy unaffordable
Who cares that fewer and fewer people in Australia can afford this most basic necessity? At least we’re saving the planet, right?
Actually no, since nothing Australia does makes any difference to the global climate. It just appeases the idiotic Green/Left activists, while India and China burn cheap coal to their hearts’ content.
The Australianhighlights ($) the continuing price rises for electricity and gas:
About three-quarters of households and businesses on the east coast and South Australia face substantial increases in power bills from next month, after Origin Energy announced price rises for electricity and gas.
Origin, the biggest of the three major generators and retailers, confirmed the pressure on wholesale prices from a historic lack of investment in new baseload generation capacity. AGL Energy and EnergyAustralia also announced price rises in recent days.
NSW, which came close to blackouts amid soaring temperatures in…
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Finkel’s Fantasyland: Report to ‘Save’ Australia’s Power Grid From Renewables Chaos a Death Sentence for BusinessPosted: June 11, 2017
“And here’s a very important warning: beware modellers who tell you that, in the best-case scenario, electricity prices could actually fall. Tell that to the householders who face power price rises of between 20 and 30 per cent in parts of Australia.”
Garbage in, garbage out is the key reason to distrust the modelling, as well as the riding instructions given to compliant modellers. They are happy to adjust assumptions, often in hidden ways, to achieve the desired result…”
Sounds a lot like the overheated UN CMIP5 climate models – 102 ensembles which have failed dismally to model observed reality with regard to the current global warming “pause”. That ever inconvenient warming “hiatus” now nearing two decades despite record “CO2” emissions over the same period!
In yesterday’s post we described Alan Finkel’s report on Australia’s power market fiasco as a mixture of Lewis Carroll’s ‘Through the Looking-Glass’ – residing in a place where the fundamentals of physics and economics, logic and reason are playfully and permanently suspended – and Goldilocks – the story about an infantile quest to make sure everything the heart desires is ‘just right’ – another lovable, childish fantasy.
After the report was released, commentators and barrackers set to work attempting to find something resembling common sense amongst its musings.
Alas, the report’s recommendations (available here), were they to be implemented, would guarantee the destruction of what remains of Australia’s reliable and affordable power supplies, albeit at a somewhat slower pace than is already guaranteed under the Large-Scale RET. South Australia has already been written-off; Finkel uses it as ‘case…
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When people turn on wind power, it’s a one-way proposition: they never, ever worship these things again.
And when the convert was among those who first championed the greatest economic and environmental fraud of all time, they don’t just quietly fall out of love, they tend to become the loudest critics of all; a bit like reformed smokers berating their old smoking buddies for lighting up.
One character who fits that mould is co-founder of the German Greens, Otto Georg Schily; who has just joined the growing throngs of Germans who now recognise the country’s maniacal obsession with massively subsidised wind and solar power as “an economic, social and ecological disaster”.
Germany’s Energiewende “An Economic, Social and Ecological Disaster”, Writes Top German Socialist!
No Tricks Zone
19 May 2017
In a referendum slated for this coming Sunday, Swiss citizens are being called to vote on a national energy strategy…
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THE straight up truth about “unreliable” (green) energy. Well worth 5 mins of your precious time.
“Despite the Danish wind industry’s efforts to downplay it, the resistance exhibited by Danes has spread with disastrous results for the likes of Vestas.
In a clearly unhelpful turn of events for the wind industry in Denmark (and elsewhere for that matter), the growing fury of wind farm neighbours has rattled local governments and forced them into action.”
The sad part is that the “save the planet” lobby with their schizophrenic, ideologically driven push for unrealiable-energy has cost taxpayers, namely the poor, literally trillions of dollars of their hard-earned money to see the light.
Andrew Bolt nailed it commenting: “These are fake scares creating huge damage. Once again, the scaremongering is more dangerous than the scare.”
Denmark is the home of the original eco-fascist profiteers – Vestas – the struggling turbine maker – run by by a band of crooks – once exhorted the world to “Act on (its parallel universe version of the) Facts”: paying $millions to the Australian Greens and Trotskyite fronts like Getup! & Co – pitching lies like the one about the noise from V112s being just like the noise from a fridge 500m away (see our post here).
Whacked with costly lawsuits from wind farm neighbours – in one case a court awarding Dkr 500,000 (A$93,439) in compensation for the substantial reduction in the value of the plaintiffs’ home, caused by incessant turbine noise – the wind industry did its best to collude with a then pliant government to extricate itself from further liability (see our post here).
The Danish wind industry then resorted to the wholesale destruction of…
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Shock news 🇩🇪🌱!
And no wonder unrealiable-energy-obsessed Germany is reverting *back* to coal-fired power at record rates after its disastrous €Trillion “Energiewende” fail…
In Europe wind powered Denmark and Germany are vying for top spot on the insane power price ladder.
The world over, businesses and households are fast waking up to the fact that the wind industry line about wind power being ‘free’ and getting cheaper all the time is among the greatest lies ever told.
Sure, when the wind is blowing the Wind Gods don’t send a bill. However focusing on the cost of what it takes to get them turning, misses the fact that operations and maintenance costs on wind turbines approach $25 per MWh, with that figure increasing over time as gearboxes, generators, blades and bearings wear out or disintegrate.
The other, not so minor, cost that the wind industry tends to overlook, is having an equal amount of conventional, synchronous and dispatchable power generating capacity always available to cover those numerous occasions when the Wind Gods determine…
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