Tag Archives: National Electricity Market

Electricity retailers reap rich rewards

For a billing service that needs to invest no more than renting an office, hiring some staff and buying office furniture and computers, rewards for an electricity retailer are rich indeed. In this post I publish some comments I sent to our local ABC Mornings presenter, Steve Austin, who has taken up the cudgels on behalf of consumers who are hurting from electricity price rises. Austin is fighting the good fight but unfortunately regularly misfiring. Then, while I was writing those comments, information came through of another Victorian investigation, which is a bit of a bombshell.

Sophie Vorrath at RenewEconomy has a post Failed experiment: Now it’s retail arms gaming energy consumers with the grisly details. Continue reading Electricity retailers reap rich rewards

Renewables make gas out of date, but coal not done yet

It’s the kind of article we expect in RenewEconomy, but this one by Angela Macdonald Smith is in the Australian Financial ReviewFuture for gas to be cut short by batteries and renewables:

    The conventional wisdom that gas will play an increasingly significant role in electricity supply as the market switches more towards renewables to back up that intermittent supply source, has largely gone out the window.

    Now it’s a discussion of how much an opportunity gas has before it gets squeezed out of the mainstream generation market by solar/wind and storage – not on carbon emissions grounds, but on costs.

Continue reading Renewables make gas out of date, but coal not done yet

AER, ACCC and the ABC join the fray on Qld electricity prices

In last Tuesday’s post It’s gas, not renewables, pushing up electricity prices the federal Minister Josh Frydenberg attacked the Queensland government through it’s state-owned generators for “gaming the system”, which, he said gave Queensland the nation’s most expensive electricity, costing jobs. In that post Queensland’s electricity was shown to be low compared to those of the other eastern mainland states, in recent years and in recent months the lowest.

The state has now been attacked by the AER (Australian Energy Regulator) and by the ACCC. At the end of it all, Steve Austin, the host of Mornings on Brisbane’s local ABC, sank the boot in. So what to make of it all? Continue reading AER, ACCC and the ABC join the fray on Qld electricity prices

It’s gas, not renewables, pushing up electricity prices

There has been a war about electricity prices reflected in front page headlines. For example:

Continue reading It’s gas, not renewables, pushing up electricity prices

Saturday salon 15/7

1. Electric shock

The big story in Australian politics this week was the shocking state of the political debate on electricity. Giles Parkinson says, when you thought it couldn’t get any dumber, it did.

‘People will die due to renewables’, said Turnbull government MP Craig Kelly.

Commentators who don’t understand the grid should butt out of the battery debate, said Ketan Joshi, a communications consultant for the renewable energy industry. Continue reading Saturday salon 15/7

Australia puts the brakes on wind

Wind power, seen as inherently evil by our national government, was in danger of taking over in South Australia. So something had to be done to slow it down, right?

How about if the wind blows strong providing cheap power we mandate that the gas must be turned up as well, so the wholesale price goes up instead of down?

It seems absurd, but that is what has been done. Continue reading Australia puts the brakes on wind

Scientists say go, Finkel says slow, Christensen says no

In this post I meant to show how the science has been showing for years now that we need rapid and concerted decarbonisation for a safe climate, and any hope of keeping global warming to 1.5˚C, in order to frame a consideration of the Finkel review. However, Abbott’s climate denialism is dramatically on full show and now George Christensen has thrown a grenade into the ring by saying he won’t vote in favour of Finkel’s Clean Energy Target. He says that most other Nationals won’t vote for it either. Indeed:

    He said that, rather than legislating a clean energy target, the government would be better off building high-efficiency coal-fired power stations to replace the ageing coal fleet. Christensen contended that approach would reduce carbon pollution.

Indeed Finkel’s review, which was carefully crafted to meet the full range of views in the LNP including climate deniers, looks dead in the water. Continue reading Scientists say go, Finkel says slow, Christensen says no

Looking forward to Finkel

The Finkel review of the National Electricity Market is due to be revealed to the premiers at COAG tomorrow, but is you’ve been reading the Australian Financial Review it’s all done and dusted. There’s really only one horse in the race, and it’s the Low Emissions Target (LET), which Tony Wood of the Grattan Institute says is the third last horse in the race, but picked because it’s better than the other two. That may be harsh, but the visionary scheme was first proposed by John Howard in 2007. Here’s Howard and Costello launching the scheme way back then:

It’s the least-worst, least-best carbon pricing scheme, but has the attraction of giving coal a chance of sticking around for a while. Continue reading Looking forward to Finkel

Energy crossroads

Transformer over orange sky
The initial stimulus for this post was an article in the AFR entitled We are at an energy crossroad (paper version) by Tony Wood of the Grattan Institute, based on a new report Powering through: how to restore confidence in the National Electricity Market and a series of articles mainly at RenewEconomy. I’ll summarise them Climate clippings style, so the story should emerge and you can follow the links for elaboration if you choose. Continue reading Energy crossroads

Power tipping point

The Four Corners program Power Failure added to the sense of crisis around our power system, beginning with the breathless comment that there was almost a breakdown of civil order in South Australia when the lights went out in September. The program looked at the difficulties experienced when the power went off for three days. Recently in some places affected by Cyclone Debbie, crews couldn’t get in to start fixing for about double that time. I’ll come back to Four Corners via a series of articles published on the same day.

First, in the AFR tucked away on page 8, Mark Ludlow penned an article Renewables, EIS ‘make gas-fired power redundant’ (paper edition title). Ludlow interviewed Professor Frank Jotzow, director of the Centre for Climate Economics and Policy at ANU, who said gas had been overtaken by renewable energy, including battery storage, in the transition away from coal-fired power. We should skip gas and go straight to renewables with batteries. Continue reading Power tipping point

SA power plan: intervention, not going alone

Malcolm Turnbull and Josh Frydenberg have now added a second myth to the earlier one that South Australia had rushed madly and blindly into renewables without thought for the consequences. They say that South Australia is now “going it alone”. Unfortunately this meme was picked up in the media, so that Philip Clark on ABC Nightlife recently had SA “going it alone” as his topic of the day (most of the comment supported SA, but no-one, not a single one, had their facts right).

The fact is that the Australian Energy Market Operator (AEMO) runs the market, calls bids for supply on a 30-minute basis, and balances supply and consumption. That is what it has done every day for years, since 1 July 2009, and will continue to do so into the future. Except that 30-minute time-slots are bound to be reviewed in the Finkel report and may end up at five. The Australian Energy Market Commission is currently considering a request for such a change. Continue reading SA power plan: intervention, not going alone

What the biffo between Weatherill and Frydenberg really means

“Ten years of brutal, opportunistic politics has left this nation with no credible energy policy.”

The money quote from Jay Weatherill’s outburst was this:

    “Josh Frydenberg was humiliated back in December. We were working with him to introduce an emissions intensity scheme. He knows that. It was well advanced. It was about to happen. Coal interests in the federal Coalition government basically cut him down before he even had a couple of hours explaining it.”

Continue reading What the biffo between Weatherill and Frydenberg really means