The Financial Review recognises that wind has broken Australia’s electricity system, and quotes Grattan advice that we need a new system, (redolent of Brecht’s channeling of East German politicians that it would be easier to dissolve the people and elect another).
Entranced by the Chief Scientist’s pearls of wisdom the AFR also tells us that he is to seek the solutions in an upcoming trip to Ireland and Denmark. And they publicise the latest silver bullet, a new battery invented in South Australia that will take the world by storm and solve all our problems – it’s just that it needs (for the time being you understand) a subsidy to cover 50 per cent of its costs.
I have a more well-grounded analysis published in Quadrant, here.
There is only one solution. We must unwind the subsidies and regulatory interventions that have created the problems. Governments spend or impose regulatory costs like the renewable subsidies that amount to about $5 billion a year (a calculation the Finkel report deigned not to make). These are poisoning the economy as well as costing each household $500 per year. We need politicians to announce that all subsidies to energy will be removed immediately and that there will no longer be any favouring of particular power sources. Only then will we see the supply system convalescing and recovering so that it once again provides the cheapest electricity in the world and all that entails for living standards.
The moochers and con men will scream “sovereign risk” just as the car manufacturers did when the tariff reforms were contemplated. Others will say it is just not possible to change since the forces of darkness are so well entrenched. Perhaps so but the future of the economy is therefore bleak.
My more lengthy piece critiquing the ridiculous Finkel draft report is here.
And I address it in a wider context in my forthcoming book CLIMATE CHANGE: Treaties and Policies in the Trump Era, which is to be published later this month by the redoubtable Connor Court.