Tag Archives: National Electricity Market

AGL’s $1.36 billion plan to replace Liddell

Andrew Vesey, CEO of AGL made his attitude to new coal clear:

    “It is very simple: We are overloading the atmosphere with heat-trapping gas and the rest is details,” Mr Vesey told an investor briefing in Sydney, where he again forcefully ruled out any investment in new coal-fired power.

He said there were two strategic imperatives that govern all AGL’s investments – affordability and the tenet that the future will be carbon-constrained, making new coal too risky as an investment.

AGL has confirmed its plans to close the Liddell coal generator in NSW and “replace it with 1.6GW of renewables, plus storage and other technologies – saying it was a smarter, cheaper, cleaner and more reliable option than keeping the ageing and unreliable coal plant open.” Continue reading AGL’s $1.36 billion plan to replace Liddell

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

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’?

Turnbull does energy policy on the back of an envelope

For over a month now I’ve been trying to do two posts – one on climate as an existential threat, and another on whether 1.5ºC is at all still possible. I keep being diverted.

Malcolm Turnbull has been dithering for months over whether the government would accept the Finkel review recommendation for a Clean Energy Target. For some time now, it has been clear that the climate contrarians in his own party, and the Nationals starting with Barnaby Joyce, would not accept anything that is negative about coal. In the end they asked the brand new Security Energy Commission for advice, in terms that were severely constrained. They got their advice, faithful to the brief in an eight-page letter, and announced a “breakthrough” in the form of a National Energy Guarantee to deliver affordable, reliable electricity with industry and stakeholder consultations to follow, plus the necessary modelling to be undertaken only after the states have agreed. Therein lies the problem. Continue reading Turnbull does energy policy on the back of an envelope

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

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

Does the Government want to solve the energy crisis?

Last week ended with talk of breaking up AGL, along with experinced political journalist Philip Coorey saying:

    It is becoming more apparent the government is as happy to have a fight as find a solution.

A fight over energy all the way to the next election could suit it very well, if the main priority is to “kill Bill”. What it says it wants is “dispatchable baseload”. Cheap dispatchable baseload, and for a sizable rump it must be with coal.

Of “dispatchable baseload”, Giles Parkinson asks is that a thing? Continue reading Does the Government want to solve the energy crisis?

Turnbull to walk away from the Clean Energy Target

According to Malcolm Farr, when the Finkel review appeared, this is what Malcolm Turnbull said about the Clean Energy Target:

    “Well it would certainly work, there is no question it would work and we are looking at it, giving it very favourable consideration.”

Rafael Epstein interviewing Josh Frydenberg on RN Drive replayed Turnbull’s audio, saying also the CET had “strong virtues”. Continue reading Turnbull to walk away from the Clean Energy Target

Turnbull goes feral on electricity

Last week AEMO, the Australian Energy Market Operator produced two reports on future of electricity markets. The Coalition government under Turnbull cherry picked the reports in a way that was almost infantile, going completely feral, politicising the energy policy, making clear that bipartisanship will be avoided at all costs.

On Saturday at the Country Liberals annual conference in Darwin, he said this:

    “I mean, Blackout Bill, fair dinkum, as my old dad would have said, he is so hopeless he could not find his backside with both hands.”

The electricity issue has been folded into his “kill Bill” strategy. Continue reading Turnbull goes feral on electricity

Turnbull’s choice – a clapped out coal burner or a clean energy plan

You guessed it, he chose the clapped out Liddell coal-fired power plant.

AEMO, the Australian Energy Market Operator, said New South Wales may be short of power when Liddell closes, as scheduled, in 2022, based on known plans and government policy positions, federal and state. AEMO had just published two documents – Electricity Statement of Opportunities for the National Electricity Market and Advice to Commonwealth Government on Dispatchable Capability. Apart from the risk of blackouts this coming summer in SA and Victoria, the next pressure point could be in 2022 in NSW with the closure of Liddell.

As David Blowers of the Grattan Institute said, the second report carried a clear message, though not stated directly – the system is broken a bipartisan clean energy policy is badly needed. Continue reading Turnbull’s choice – a clapped out coal burner or a clean energy plan