The Commonwealth’s energy policy proposals will not unwind the regulatory-induced damage

I have a piece in The Spectator about the government’s leaked release of the Frontier Economics report it commissioned. The Government plans to retain the increased availability of the Renewable Energy Target (RET) subsidies until 2020 and then maintain payments to installed plant until 2030.

Currently the subsidies, which are direct transfers from consumers, pay wind/solar $85 per MWh in addition to them receiving the spot price now at $80 per MWh (double the price prior to the Hazelwood closure).

Although Frontier’s modelling is not to be released until Friday, the information now on the public record shows that it forecasts:

  • Cost savings to households of $120 a year by 2030 with a 23 per cent drop in wholesale electricity price in the decade between 2020 and 2030 compared to business as usual.
  • The requirement of renewable energy retailers to “firm up” the supply under the National Energy Guarantee will result in an extra 3,600 megawatts of dispatchable power during the decade, equivalent to the generation capacity of two and a half Hazelwood’s capacity.
  • “The 2030 share of renewables is likely to be about 32-36 per cent, of which about 8 per cent comes from hydro that has the characteristics of baseload power”. That is 26-28 per cent will be exotic currently subsidised renewables up from 16 per cent (plus 8 per cent hydro) in 2020

Of course, any forecast 13 years ahead in the changing energy theatre are to be taken with a grain of salt, all the more so when the  forecast is by a consultancy which has been hired in the knowledge that its answers will be helpful to the government which commissioned them.

Some implications of the report are:

First, the 23 per cent forecast wholesale price reduction comes after an increase of 100 per cent due to the renewable energy subsidies.  So even if the forecasts prove accurate they still leave the nation with an increased electricity cost base compared with 2015.

Secondly, the “extra 3600 megawatts of dispatchable power” comprises high cost facilities like the mythical Snowy pumped storage facility designed to even out the daily price and all those batteries designed to provide very short term reliability.  These expenditures are not necessary with coal generators.

Thirdly the 2030 level of exotic renewables must displace some further coal power stations, at least three others of Hazelwood’s size (only the 2000 MW Liddell is presently scheduled for closure by 2030 and the government is seeking to have AGL keep it open)

Driving the forecasts is a projection of renewable energy costs.  These latest forecasts are predicated on 2020 cost of wind and solar costs at $73-75 a megawatt hour, falling to as low as $57 a megawatt hour by 2030.

These prices remain well in excess of those that are available from new coal facilities (less than $50 per MWh according to estimates in a report commissioned by the Minerals Council), and also require firming capacity payments.  Moreover, although some contracts have apparently already been signed at around $60 per MWh, prices of these contracts do not seem credible.  The renewable subsidies have caused the market price to increase from its previous $40 per MWh to $80+.  But, in addition, wind still receives a subsidy of $85 per MWh.  This, on market information, is estimated to fall to around $45 by 2022, (the latest date at which any information is publically available).

If wind/solar is genuinely available at $73 falling to $57 per MWh, this being close to the spot price means competition would drive the subsidy to zero.  All of the interested parties are vehemently opposed to that!

Even under the present plan the RET subsidy will likely cost at least $3 billion per year up until 2030.

And the lobbying pressure from greens and rent-seekers is hardly likely to acquiesce in a standstill of subsidy payments to wind, solar, pumped storage, batteries and other products doing so much to undermine the once world-beating Australian electricity industry.

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56 Responses to The Commonwealth’s energy policy proposals will not unwind the regulatory-induced damage

  1. Has anyone asked the Greens, and their hordes of Orcs, why they oppose the ending of subsidies if renewable energy is now competitive with conventional power generation?

    And I mean put this question front and centre in every news broadcast every time the RET etc is raised.

    I know, I know; it’s a forlorn hope that anyone in the MSM would ask that question. But why can’t our politicians ask this at every interview and speaking opportunity?

  2. The destruction of our electricity grid is an act of madness.

  3. Baldrick

    Meanwhile, Chief Scientist Alan Finkel came out yesterday endorsing Labors 50% Ruinable target by 2030:

    Chief Scientist Alan Finkel has contradicted the government’s claims that Labor’s 50 per cent renewables target by 2030 is irresponsible, issuing a major report that says it could be met easily without jeopardising reliability and without the need for significant investment in energy storage.

    We have a choice of bad or worse.

  4. Bruce

    “The destruction of our electricity grid is an act of madness.”

    In saner times, it would be acknowledged as an Act of WAR.

  5. John Constantine

    The front end demand destruction by deindustrialising Australia, so no voters die in rolling blackouts is set near term policy.

    What is the point of talking about 2030 Australia electricity, when the country will be a deindustrialised string of shantytowns?.

    Too late to predict cheap reliable power ten years after the economic genocide of the country.

    We can’t make aluminium, we can’t make ice cream and the surrender conventions our elites signed to put us in this position don’t make sense.

  6. The Deplorable Barking Toad

    Or an act of treason!

  7. zyconoclast

    Has anyone asked the Greens, and their hordes of Orcs, why they oppose the ending of subsidies if renewable energy is now competitive with conventional power generation?

    And I mean put this question front and centre in every news broadcast every time the RET etc is raised.

    Because it is not about competitive intermittent power sources.
    It is about the destruction of coal-fired power.
    What happens after that doesn’t matter.

  8. Gengis

    The requirement of renewable energy retailers to “firm up” the supply under the National Energy Guarantee will result in an extra 3,600 megawatts of dispatchable power during the decade, equivalent to the generation capacity of two and a half Hazelwood’s capacity.

    And if they don’t?

  9. RobK

    Thanks for the update Alan.
    …under the National Energy Guarantee will result in an extra 3,600 megawatts of dispatchable power during the decade, equivalent to the generation capacity of two and a half Hazelwood’s capacity.
    If they count dispatchable stored power as equivalent to coal, there’s a mighty con happening. Typically, batteries are good for short germ buffering, pumped hydro for peak shaving. Some for of fossil fuel willl be required. Gas comes in below the CET threshold in Finkel’s report so it will be the anointed one I guess. I don’t have much faith in concentrated solar doing the job. Storage has two main properties: power and energy stored. 3.6GW of dispatchable, what amount of energy stored to match the intermittents. No matter which way you dice it, it’s an expensive path. The move to limit it shows somewhere we are being heard but not fully understood.
    Keep up the good work Alan.

  10. Myrddin Seren

    Chief Scientist Alan Finkel has contradicted the government’s claims that Labor’s 50 per cent renewables target by 2030 is irresponsible, issuing a major report that says it could be met easily without jeopardising reliability and without the need for significant investment in energy storage.

    Good Gosh.

    So Finkel has read the polling and decided to openly throw his lot in with the ALP/ Greens/ ACTU coalition – figuring the Turnbull United Party will collapse and be booted in to obscurity before they can fire him.

    That’s it peeps – I doubt The Coalition will survive even the abbreviated one week pre-Christmas sitting.

  11. RobK

    Apologies for spelling errors.

  12. Myrddin Seren

    Oh My God

    Dr Finkel says given Australia’s natural resources and technical expertise, energy storage could represent a major new export industry for the nation.

    ‘Energy storage is an opportunity to capitalise on our research strengths, culture of innovation and abundant natural resources,’ Dr Finkel said.

    ‘We have great advantages in the rapidly expanding field of lithium production and the emerging field of renewable hydrogen with export opportunities to Asia’.

    If batteries actually work, the Chinese will be cranking them out – not the highest wage, highest energy cost, one of the most regulated, highest taxed economies in the world.

    And the furphy about exporting hydrogen. If Australia could crack hydrogen, so could anyone else and save the transport and handling costs.

    We are truly going over a cliff as soon a Shorten and his union caporegimes have The Lodge.

  13. I’ve worked in science research with CSIRO, ANU and others involving solar and battery technology, which dates back close to 10 years. Back then, all those scientists were saying that the ‘breakthrough’ was just around the corner.

    All was ever promised was fairy dust and dreams. I was sceptical then and I’m sceptical now.

  14. Bruce of Newcastle

    Cost savings to households of $120 a year by 2030 with a 23 per cent drop in wholesale electricity price in the decade between 2020 and 2030 compared to business as usual.

    ROFL.

    The requirement of renewable energy retailers to “firm up” the supply under the National Energy Guarantee will result in an extra 3,600 megawatts of dispatchable power during the decade, equivalent to the generation capacity of two and a half Hazelwood’s capacity.

    So to have 3.6 GW of dispachable power they would need 3.6 GW of dispachable battery capacity. If that is one day of capacity that would be 86.4 GWh of battery capacity with a discharge rate of 3.6 GW.

    Musk’s South Australian battery is 100 MW/129 MWh, so the rate would be fine if there were enough of them. That would be 670 of them to be precise. It’s hard to tell how much Musk’s battery costs. Ranges from $33 to $240 million have been given. So if we are super optimistic and say $100 million for each that would be $67 billion for the full set of 3.6 GW/86.4 GWh of batteries. Which would last about 8 years then require replacement.

    Where exactly does Frydenberg think that $67 billion is going to come from eh?

    “The 2030 share of renewables is likely to be about 32-36 per cent, of which about 8 per cent comes from hydro that has the characteristics of baseload power”. That is 26-28 per cent will be exotic currently subsidised renewables up from 16 per cent (plus 8 per cent hydro) in 2020

    On the basis of the very robust graph of renewable energy capacity vs real world electricity prices that 32-36% would be double the current percentage, and thus electricity prices would be about a third higher than today, exclusive of inflation. So much for a $120 a year saving. More like another $1,000 per year plus per household.

    These people must think we’re morons.

  15. John Constantine

    The only way Australia can export hydrogen is in the chilled and compressed form as CH4.

    And we can’t Frack for that.

    Comrades.

  16. RobK

    Any comparison of price should factor in that non dispatchable power isn’t worth nearly as much as dispatchable so they aren’t competitive at the moment.
    Finkel:”‘We have great advantages in the rapidly expanding field of lithium production and the emerging field of renewable hydrogen with export opportunities to Asia’.
    Here is a technocrat that thinks Australia should be his laboratory plaything. Logic would say get the economy humming with cheap inputs, then turn your mind to improvements. Presently, they will torture the carcass to save it.

  17. Myrddin Seren

    These people must think we’re morons.

    Bruce

    Here is how the Government thinks they are going to meet our unshakable commitment to Paris:

    Australia’s 2030 climate change target

    Scroll to the bar chart down the bottom under Australia’s 2030 target is achievable with Direct Action.

    About a third seems to be ‘Emissions Reduction Fund’ in one form or another. That seems to be ‘pay people to close down CO2e emitting capacity. And replace ? And if replace – with what ?

    Vehicle Efficiency. Stand by for mandatory electric vehicles and the phasing out of ICE vehicles.

    Technology Improvements & Other. In other words – no f**king idea.

    So far – the Uniparty is getting away with all this, so no doubt they are feeling positive reinforcement that the Proles are indeed morons.

  18. IRFM

    A narrow blog limited in scope to the current energy de jour approach. No mention of Northern Rivers hydro potential, tropical Qld hydro, nuclear energy with the new generation reactors, conversion of stranded at depth coal assets to natural gas by bacteria based methods and so on.

  19. George

    Wow – excited of the prospect of having $120 pa extra in my pocket. Really excited.

  20. manalive

    “Germany has been called “the world’s first major renewable energy” (Wiki).

    Since Energiewende was legislated in Germany in 2010 driving renewables to about 30% of electricity consumed at enormous cost in electricity bills estimated by the WSJ at €125 billion there has been zero effect on the country’s CO2 emissions.
    Model forecasts of course outclass empirical data nowadays.

  21. Bruce

    And where, pray tell, do these brain-dead cretins think the electricity to charge up these toy cars will come from?

    And how is it to be distributed?

    WHERE will all of the required “filler” stations be located; think long-haul transport for starters.

    Supplementary; Has anyone done the sums on the amount of lead, zinc, cadmium, nickel, etc., etc. that will have to be MINED and refined to realize this plan? Then there are the “exotics” (rare earths), that must be mined and refined to make the “eco-friendly” solar panels and giant bird shredders. Anyone been to an Alumina smelter? There is a reason that they are usually located near HUGE power stations.

    I have just started reviving our “victory garden”, just in case. Also, not hard for me to walk into the bush and hunt / trap enough “protein” for the needs of the household. But, for the mass of the peasantry?

  22. RobK

    IRFM,
    A narrow blog limited in scope to the current energy de jour approach.
    Don’t let me hold you back. Go for it…..or is it the subsidies that are required, or the EIS hurdles. Be game, most have been frightened off.
    But whilst you’re setting that up let’s start from the baseline of what we had which is reliable cheap coal. Most on this site are happy to see nukes included. All forms of generating should be given an even footing. Different forms will suite different niches.

  23. Bruce of Newcastle

    Stand by for mandatory electric vehicles and the phasing out of ICE vehicles.

    That’d be fun, replacing the sixteen million cars in the country with electric. At a rough number of 4 km/kWh and 10,000 km per car per year that would be another 5 GW of despatchable power they’d have to find somehow. About triple what South Australia now generates. Plus add on huge infrastructure costs for all the charge points, poles and wires.

  24. egg_

    Chief Scientist Alan Finkel has contradicted the government’s claims that Labor’s 50 per cent renewables target by 2030 is irresponsible,

    Obviously a political position.
    What say our resident Scientists?
    Crickets?

  25. egg_

    The destruction of our electricity grid is an act of madness.

    Obviously, our betters can afford to be off-Grid, viz Di Natale, the au pair Robber Baron.
    How many Houses of Parliament have snuck in Diesel Gen-sets on the quiet?

  26. egg_

    The destruction of our electricity grid is an act of madness.

    Obviously, our betters can afford to be off-Grid,

    SHY probably has 5x chest freezers and a 100 kW Gen-set for her ice cream alone.

  27. RobK

    What say our resident Scientists?
    See BoN’s “very robust graph” at 5.05pm.

  28. egg_

    “What say our resident Scientists?”

    Of our “Chief Scientist”.
    “Very robust graph” sounds like soyboy talk.

  29. Bruce of Newcastle

    What say our resident Scientists?

    Irresponsible is too kind a word.
    Completely batpoo crazy in the opinion of this particular scientist.
    And that is even if CAGW was actually happening, which it isn’t.

  30. BoyfromTottenham

    Incoherent Rambler: The destruction of ANY of our critical infrastructure (for that is what the electrical grid surely is) by legislative fiat is not madness, it must be treachery, perhaps even treason. But nobody wants to join the dots. So we patiently sit and wait until the lights go out, our essential services and industries fail, and people start to die and then, MAYBE then, we will join the dots and start sharpening the pitchforks and looking for retribution. Whither economic history? Whither honest science and engineering? Where can one escape to, to be safe in their dotage that isn’t infected with this madness? If only I knew. Maybe this is why Victoriastan is legislating for euthanasia?

  31. BoyfromTottenham

    Bravo Bruce. BTW, can you help me find a place of escape to be safe from this madness in my dotage, or is it just too late? If it helps, I know how to sharpen pitchforks.

  32. BoyfromTottenham

    A little OT, but the SMH had an article about the federal govt and the CSIRO investing in an Australian BitCoin type startup (https://web.powerledger.io/) promising this:
    ‘Power Ledger allows for each unit of electricity to be tracked from the point of generation to the point of consumption within the building it is generated, or when sold to other consumers, using the local electricity distribution network. Blockchain technology couples a tracked energy transaction with a financial one, making the process of realising the value of renewable energy investments simple and secure.’
    Sounds like unadulterated bulls**t to me. How the f**k do they track units of electrical ‘energy’ from ‘the point of generation to the point of consumption within the building’? Maybe the same way the CAGW loons can tell the difference between natural CO2 and man-made CO2? Ha ha ha.

  33. RobK

    Cost savings to households of $120 a year by 2030 with a 23 per cent drop in wholesale electricity price in the decade between 2020 and 2030 compared to business as usual.

    Translation: things are going to get a lot dearer between now and 2020 while the subsidies persist. Then, as we propose to only honour existing parasites from then on, the price should come back a bit out to 2030. You save! Ha ha ha.

  34. Bruce of Newcastle

    Bravo Bruce. BTW, can you help me find a place of escape to be safe from this madness in my dotage, or is it just too late?

    South Island NZ. Already gets 97% of their electricity from hydro, so they’re immune to green madness.

    Take a good warm waterproof coat when you move there.

  35. RobK

    BfT,
    The powerledger scheme can work ok but it requires a third party cooperative grid which I’m guessing they hope to have access to for free. You’d need a good size generation plant to really make it worthwhile. The rest is all touchy feely ABC shite.

  36. min

    As for pumped hydro, the report out today estimates it will cost another 2 billion for poles and wires to Melbourne and Sydney . Cost is now 4 billion plus for how much power.?

  37. iampeter

    Has anyone asked the Greens, and their hordes of Orcs, why they oppose the ending of subsidies if renewable energy is now competitive with conventional power generation?

    Why would anyone need to ask the Greens about anything to do with this?

    The RET and the associated environmentalist bureaucracy is all courtesy of the “Greatest Living Conservative” John Howard and his government.

    We have the Liberals to thank for this mess.

  38. BoyfromTottenham

    iampeter: ‘We have the Liberals to thank for this mess’. Maybe they should share some of the blame, but by no means all. At least the Howard govt set the RET at a sensible (maybe just virtue-signalling) level of only 2% of total generation – a fig leaf. The following Labor government jacked this up to 20% (i.e. a tenfold increase), which really encouraged crazy amounts of ‘investment’ in ‘renewables’ (i.e. subsidy farming), and started the terminal profitability decline of the baseload generators. Abbott tried to kill the RET, but only managed to cap it, but still at too high a rate to save the baseload generators. Watermelon Turnbull to his discredit has done absolutely nothing to ameliorate the pernicious effects of the RET on the viability of baseload generators, guaranteeing the creation of the mess that we are now in.

  39. Exactly BfT. The numbnuts would have us believe that everything is the fault of Howard or Abbott, but forget the finer details.

  40. egg_

    we patiently sit and wait until the lights go out, our essential services and industries fail, and people start to die and then, MAYBE then, we will join the dots and start sharpening the pitchforks and looking for retribution.

    Then give Frydenberg the Mussolini treatment.

    /NADT

  41. John Constantine

    The transnational looting cartels will not allow New Zealand to escape them with hydro.

    Wait for their greens to be funded to save New Zealand’s rivers by dynamiting their dams and swapping to windmills.

    Like saving the snowy and Murray darling .

    Comrades.

  42. Rohan

    Sounds like unadulterated bulls**t to me. How the f**k do they track units of electrical ‘energy’ from ‘the point of generation to the point of consumption within the building’? Maybe the same way the CAGW loons can tell the difference between natural CO2 and man-made CO2? Ha ha ha.

    Looks like a Ponzy scheme. Walks like a Ponzy scheme. Talks like a Ponzy scheme. Must be a Ponzie scheme.

  43. PoliticoNT

    Nice to read something that makes sense on energy, rather than that turgid crap Frydenberg penned in today’s Australian. (Which I read twice, thought I must have been mistaken the first time around, but no – he really is a complete fucking drongo.)

  44. egg_

    Cost savings to households of $120 a year by 2030

    Presumably, Joe Public sees straight through Frydenberg’s bullhh1t, hence the Waffler slips further in the polls and the Chief Scientist is shredding any credibility he may have had.

  45. davefromweewaa

    LNP white elephants might be slightly cheaper than ALP ones but they are still white elephants!
    What do we want?
    No RET & No Paris!

  46. alan sivkoff

    $3 billion a year to 2030, we can build a new hele coal fired, baseload station for just 11/2 years of subsidies for these renewables. What alternative universe do these fools, who really believe solar & wind will do the job, actually live in .

  47. Myrddin Seren

    The transnational looting cartels will not allow New Zealand to escape them with hydro.

    Wait for their greens to be funded to save New Zealand’s rivers by dynamiting their dams and swapping to windmills.

    The Ents are coming to the South Island to save the planet from Saruman CO2e:

    Shane Jones Minister for 100 million trees, $1 billion regional fund

    Jones will also be in charge of the new Forestry Service, which will plant 100 million trees a year – with the goal of planting a billion over 10 years.

    Newshub has also learned that Jones will also be in charge of the new Forestry Service, which will plant 100 million trees a year – with the goal of planting a billion over 10 years.

    It puts Jones in charge of New Zealand First’s big win in its agreement with Labour, and money from it will be used to fund the forestry plan.

    The goal is to take jobs to the regions with roles in planting and nurseries.

    It is understood that about 50 million trees are already planted in New Zealand each year, meaning the new Government’s planting will double that.

    The plan will require 1000 stems per hectare, over 100,000 hectares.

    There is an environmental element to the plan, as forests planted on Department of Conservation land will be native trees acting as permanent “carbon sinks” to counter climate change.

    Trees will also be planted on Maori-owned land and there will be a big emphasis on getting Maori into jobs.

    The new Government department‘s headquarters will be based in Rotorua.

    Ka-ching $$$ Trees for Winston and the NZ First regional empire.

    Fancy NZ having a lazy 100,000 hectares to be surrendered up to the Ents every year ? At some point te presence of people must become – problematic ?

  48. RobK

    “…..of which about 8 per cent comes from hydro that has the characteristics of baseload power”.
    Well, nearly. Hydro struggles a bit in droughts or when demand is constantly high. Rainfall is a limiting factor in many areas in Australia.

  49. The plan will require 1000 stems per hectare, over 100,000 hectares.

    I wonder if anyone has given any thought to the possible unintended consequences were they to achieve this?

  50. Thales

    What no one has noticed is that the SREC part of the RET – the bit that subsidises small solar systems – will blow out from this year’s $500 million cost to $1.2 billion next year, all to be paid by consumers. There is no market price mechanism built into the scheme – all certificates created must be purchased by energy retailers. There was a trigger in the original Gillard government legislation for a review of the target price if there were more than 6 million certificates created in 2015 but 14 million or so were created and no review. 12.5 million had to be surrendered this year but with the cost of systems going down and power prices going up we are on track for around 30 million to be surrendered next year at a cost of $1.2 billion unless the government reviews the target price as allowed under the legislation.

  51. herodotus

    Energy derangement is still the strongest player in the game, ably assisted by the left/green media mates and scientists on the take.
    Frightenedberg’s latest attempt to assure people that things are on the improve won’t work. A mere $30 off your quarterly bill for $990 that used to be $660 is hardly progress worth boasting about.

  52. jonesy

    This is what happens when kids do not understand the basic concept of energy flow! In essence, we are being sold a perpetual motion machine. On one hand, base load is bad! On the other hand, we will all be driving electric cars…..HELLLOOOOO…..helllloooooooo…..hhhhheeeeellllllooooooo. Yes, it is going to be a very long drop! One car…a Tesla, takes off from Brisbane to Adelaide along the Pacific , the Hume and gawd knows which way to Adelaide…it certainly will not be along the Stuart and Hay plain. First stop, Coffs Harbour..40minutes hooked up to the fast charger to get to 80%…then Newcastle to repeat EVERY 400km and I’m betting two nights in a motel. That one car multiplied by even 12,000,000 for 40minutes even once a week! Where does that type of power comes from? That car cost $212,000.00…batteries that might last eight years then must be replaced…multiplied 12,000.000 times????

  53. Norman Church

    Sadly, too many members of the public have no idea about base load power and accept what is said about renewables at face value.

  54. Myrddin Seren

    Sadly, too many members of the public have no idea about base load power and accept what is said about renewables at face value.

    Even more sadly, the same thing seems to be able to be said about far too many members of the Political Class making decisions on this stuff affecting all of us.

    My recollection is that the performing seals in the Liberal party room cheered and cut Tony Abbott off from any further discussion about Turnbull’s vaunted National Energy Guarantee, without having a clue about what it meant in practice.

    Buy candles.

  55. truth

    Alan…just on those $60/MWh contracts…..

    The contracts for $60/MWh are with Chinese companies-most of them anyway eg 530MW Stockyard Hill wind farm was sold by Origin to the Chinese firm Goldwind…unbuilt but shovel-ready…. and journalists were apparently amazed at the PPA for $60/MWh.

    It doesn’t seem so amazing to me as Chinese companies-most controlled by the Chinese communist dictatorship can presumably go as low as they need to for their purposes.

    Likewise AGL-OWNED by the Chinese Government with some input by the Singapore Government wealth fund is said to have secured ‘an off-take price of below $60/MWh through the sale of its 453MW Coopers Gap Wind Farm, between Kingaroy and Dalby in Queensland’s south-east.’

    But Chinese-owned AGL’s sales are to its own AGL-created PARF [ie AGL+Qld Investmnt Corporation-a Labor established entity] …and its PPAs are with itself…ie the Chinese government which can go as low as it needs to for its own ends.

    Chinese Government-owned AGL sold all its Northern Australia gas assets to a Chinese company-so that’s all very cosy.

    Infigen’s Bodangora’s PPA’s with Energy Australia which is Hong Kong Chinese-owned…and so it goes on.
    Almost ALL of Australia’s electricity generation+transmission+distribution-retailing -our ULTIMATE ESSENTIAL service-on which ABSOLUTELY everything else depends including our lives-is foreign-owned-most of it by the COMMUNIST CHINESE dictatorship-DO WE THINK CHINA CARES if Australia becomes energy insecure-a country in DECLINE?

    And of course they also own farmland, mines…our Northern-most port for all intents and purposes…and the South China Sea.

    It takes on a more sinister meaning too…when we hear that Xi has made himself the most authoritarian hard-line Communist Chinese leader since Mao and the Cultural Revolution.

    What’s to worry about?

    which Just three months after Origin Energy stunned the renewables industry with a record low power off-take deal for the 530MW Stockyard Hill Wind Farm in Victoria, AGL Energy has delivered more of the same, securing an off-take price of below $60/MWh through the sale of its 453MW Coopers Gap Wind Farm, between Kingaroy and Dalby in Queensland’s south-east.
    AGL said on Thursday it had reached financial close on the Sunshine State wind farm – which will be one of Australia’s biggest, once completed in 2019 – with the $22 million sale of the project to the Powering Australian Renewables Fund.
    The deal includes AGL writing a PPA for electricity and associated renewable energy certificates of less than $60/MWh for an initial five years, with an option to extend the agreement for another five years at the same – or even lower – price.

    Alan…just on those $60/MWh contracts…..
    The contracts for $60/MWh are with Chinese companies-most of them anyway eg 530MW Stockyard Hill wind farm was sold by Origin to the Chinese firm Goldwind…unbuilt but shovel-ready…. and journalists were apparently amazed at the PPA for $60/MWh.
    It doesn’t seem so amazing to me as Chinese companies-most controlled by the Chinese communist dictatorship can presumably go as low as they need to for their purposes.
    Likewise AGL-OWNED by the Chinese Government with some input by the Singapore Government wealth fund is said to have secured ‘an off-take price of below $60/MWh through the sale of its 453MW Coopers Gap Wind Farm, between Kingaroy and Dalby in Queensland’s south-east.’
    But Chinese-owned AGL’s sales are to its own AGL-created PARF [ie AGL+Qld Investmnt Corporation-a Labor established entity] …and its PPAs are with itself…ie the Chinese government which can go as low as it needs to for its own ends.
    Chinese Government-owned AGL sold all its Northern Australia gas assets to a Chinese company-so that’s all very cosy.
    Infigen’s Bodangora’s PPA’s with Energy Australia which is Hong Kong Chinese-owned…and so it goes on.
    Almost ALL of Australia’s electricity generation+transmission+distribution-retailing -our ULTIMATE ESSENTIAL service-on which ABSOLUTELY everything else depends including our lives-is foreign-owned-most of it by the COMMUNIST CHINESE dictatorship-DO WE THINK CHINA CARES if Australia becomes energy insecure-a country in DECLINE?
    And of course they also own farmland, mines…our Northern-most port for all intents and purposes…and the South China Sea.
    What’s to worry about?

    which Just three months after Origin Energy stunned the renewables industry with a record low power off-take deal for the 530MW Stockyard Hill Wind Farm in Victoria, AGL Energy has delivered more of the same, securing an off-take price of below $60/MWh through the sale of its 453MW Coopers Gap Wind Farm, between Kingaroy and Dalby in Queensland’s south-east.
    AGL said on Thursday it had reached financial close on the Sunshine State wind farm – which will be one of Australia’s biggest, once completed in 2019 – with the $22 million sale of the project to the Powering Australian Renewables Fund.
    The deal includes AGL writing a PPA for electricity and associated renewable energy certificates of less than $60/MWh for an initial five years, with an option to extend the agreement for another five years at the same – or even lower – price.

  56. truth

    John Constantine…
    I think they can export the hydrogen in the form of ammonia NH3 too…but hydrogen still has problems a a fuel.

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