Tag Archives: electricity prices

Climate clippings 228

1. Unsubsidised wind and solar now cheapest form of bulk energy

That is the case in all major economies except Japan, according to BNEF. From RenewEconomy:

    The latest report says the biggest news comes in the two fastest growing energy markets, China and India, where it notes that “not so long ago coal was king”. Not any more.

    “In India, best-in-class solar and wind plants are now half the cost of new coal plants,” the report says, and this is despite the recent imposition of import tariffs on solar cells and modules. Continue reading Climate clippings 228

Big investors slam ‘big stick’ approach

Today’s AFR carries an article Investors warn of consequences of cutting electricity retailer margins (the print version was “‘Crazy’ to target energy retail margins, warn big investors”):

    Big investors have slammed the Morrison government’s “big stick” approach to the electricity sector, saying any move to force companies to cut prices will have a major impact on profits, future investment and result in less competition in the long term. Continue reading Big investors slam ‘big stick’ approach

Energy crisis? What energy crisis?

About a month ago Meridian Australia’s CEO Ed McManus said that while the electricity market can turn on a dime, stability had returned to the market and the trend looks good. They had just concluded a swag of hydro, wind and solar power deals which will deliver cheaper electricity than the company could buy in the wholesale market. So their retail arm Powershop was offering a 5 per cent price cut to consumers.

    Electricity contracts for delivery in 2019 were trading at more than $92 per megawatt hour in Victoria and $108/MWh in South Australia a year ago, when SA and NSW had just suffered power shortages and the closure of Victoria’s Hazelwood power station loomed.

    Contracts for 2019 have since fallen to $82.90 in Victoria and $94.36 in SA, while contracts for delivery in Victoria in 2020 and 2021 are trading at $76/MWh and $69/MWh and contracts for 2020 and 2021 in SA are trading at $86/MWh and $85/MWh.

Continue reading Energy crisis? What energy crisis?

The best kept secret: ALP electricity policy for Queensland

I came across it via Facebook around midnight on Saturday night. Not sure when it was released but there’s been nothing in the media yet about it. Surely there will be, because it is more than a little stunning. It’s called Powering Queensland’s Future: Affordable, Stable and Balanced.

From a standing start after the LNP under Campbell Newman had ‘cleansed’ the state of renewable energy projects, since February 2015 the Palaszczuk Labor government has enough runs on the board to be dubbed “a leader in Australia’s renewable energy boom” in a report by The Climate Council – Billion dollar boom: Queensland’s bright renewables future. I’ll summarise what they said, but the Palaszczuk government is running even faster and further than you would be led to believe in that report. Continue reading The best kept secret: ALP electricity policy for Queensland

LNP pledges cheap electricity for Queensland – vision splendid or hoax?

Here is the vision splendid. The promise is to save a typical Queensland family an average of $160 a year over the next two years, and then a further $300 per year from 2020. LNP leader Tim Nicholls said on TV that the average family would save about 10% on their bills.

I don’t know why that is supposed to be so stunning. Labor is promising $50 pa immediately, plus $146 pa in 2017-18 and $216 pa in 2018-19 from actions taken to put downward pressure on prices since the Queensland Competition Authority struck a new standard price for 2017-18 in early June. Here it is:

Continue reading LNP pledges cheap electricity for Queensland – vision splendid or hoax?

Cherry picking electricity prices in Qld election

It’s the season for cherry picking on electricity prices as an election is called in Queensland. This can happen because no-one, not journalists, not ABC radio hosts, and unfortunately not ‘experts’, reads Queensland Government media releases. The offending politicians from the opposition LNP are getting a free ride, with statements like ‘Prices increased 70% under Labor’ (Tim Nichols on TV) and, ‘We will put downward pressure on electricity prices’ without saying how.

I’ve assembled a fair bit of information in two posts – Queensland powers up for a warm summer and Electricity bills – Queensland acts because it can. In this post I’ll summarise what I think has happened, and then mention some of the cherry-picked claims being made. There is some new information in the post. Also there is a particular problem with Steve Austin on Mornings on local ABC radio. I don’t mind the bloke, normally, but on electricity he’s lost the plot.

I’ve provided some links here, but there are many more in the earlier posts. Continue reading Cherry picking electricity prices in Qld election

Electricity bills – Queensland acts because it can

There is no doubt that electricity in Australia has become expensive. Here is a graph on the National Electricity Market (NEM) states, other than Tasmania, against European countries:

It’s from a Carbon + Energy Markets report cited by the ACCC Retail Electricity Pricing: Preliminary Report, September 2017 comparing May 2017 Australian prices with 2015 European prices. The ACCC also note that:

    There are currently no national surveys conducted in Australia that inform price reporting around what customers are actually paying.

Which is disconcerting. The one above was based on the weighted median offer of the three largest Australian retailers. Continue reading Electricity bills – Queensland acts because it can

Turnbull’s New Energy Guarantee – ‘shambolic policy’ or ‘innovative and elegant’?

Bruce Mountain in an opinion piece in the AFR (pay-walled) said the NEG was “shambolic” policy which “snatches defeat from the jaws of victory”. Bloomberg New Energy Finance, according to Laura Tingle (also pay-walled) says “the concept is innovative and elegant, and could well prove ingenious”. Continue reading Turnbull’s New Energy Guarantee – ‘shambolic policy’ or ‘innovative and elegant’?

Queensland powers up for a warm summer

One morning recently, 10 October I think, local ABC radio host Steve Austin called up Queensland energy minister Mark Bailey to ask him about an announcement the Queensland government had made. Something about, on a voluntary basis, turning down your aircon so it runs at 26C and being paid for the power saved.

Bailey obviously had a story to tell, but wasn’t given a chance to tell it. Austin is not a boofhead, but he sometimes does a good imitation of one. In this case Bailey was bullied and harassed, “Just answer my question!”, which was whether the purpose of the scheme was to save people money, or to keep the lights on, I think there was a third option which I’ve forgotten. In any case the answer “All of the above” was not permitted, and we never found out what the scheme was about.

With Bailey dispatched, Austin gave LNP spokesman Scott Emerson the opportunity of a free rant, presumably in the name of ‘balance’ with no right of reply for Bailey. Later in the morning Austin told us he had trouble getting people to come on the show! What a surprise! Continue reading Queensland powers up for a warm summer

Climate clippings 117

On Monday and Tuesday this week we are going to have the AFR national Energy Summit in Sydney with everyone there, including Josh, Jay, Bill, Andrew Vesey and a different Malcolm Roberts (Chief Executive, APPEA). Should be fun.

The Weekend AFR had about half a dozen articles, led off by an article by Ben Potter, Angela Macdonald-Smith and Mark Ludlow (no doubt pay-walled) which said our energy has become dirty, expensive and annoyingly unreliable. They reckon something has to be done, it’s just that:

the causes identified by Prime Minister Malcolm Turnbull – or unofficial backbench energy spokesman Tony Abbott – are not the same as the causes power industry experts and regulators highlight. Continue reading Climate clippings 117

Climate clippings 116

1. South Australia wants an apology from the PM

On September 28 we had the first anniversary of the dirty big storm the brought down the power pylons in South Australia causing a state-wide blackout, as the Heywood interconnector exceeded capacity and tripped.

Now the state want an apology from the PM. Energy minister Tom Koutsantonis: Continue reading Climate clippings 116

Electricity shock

Rod Sims’ speech Shining a light: Australia’s gas and electricity affordability problem to the National Press Club certainly established that Australia has a gas and electricity affordability problem which is hurting many consumers and businesses. Electricity prices have more than doubled since 2009 as shown in this graph:

Continue reading Electricity shock