The ALP’s emission reduction dreams will strangle the economy

Over the past decade, we have spent $70 billion on wind and solar.  Here are some statistics from BNEF, not uncoincidentally, the venue where Bill Shorten and Mark Butler yesterday launched an outline of the ALP energy and climate policy.  

That $70 billion is enough for 12 new coal generators that would give us electricity with a wholesale cost of one third that of the current level.

Instead we have been closing down the more economical coal fired power stations because renewables, two thirds of the costs of which are covered by subsidies, are making them uneconomical.

Not one cent of the $70 billion spent on wind and solar would have occurred had it not been for the subsidies. Those subsidies – renewable energy schemes, the Green Energy Bank, direct support from the Commonwealth and state support measures – are running at $5 billion a year.

The outcome of this experiment has been electricity costs which have skyrocketed to become among the highest in the world. A corollary, in addition to the obvious costs to households, is the loss of some of our most productive industries energy intensive including aluminium smelting.

Now, the ALP wants to double the share of subsidised renewables which, even at 20 per cent of supply, have poisoned our electricity sector.

To do this, they want to spend an additional $10 billion in funding the green energy bank.  And they want to spend $5 billion on new interconnectors to allow unreliable and high cost wind to be transferred from state to state and to build new connections to windmills located in remote areas.

They also have a crazy idea to enable the surplus energy from rooftop installations to be stored in household batteries.  They want 100,000 households to have these batteries which will receive a subsidy of about $2000, which is not enough to be a real incentive since the batteries and their installation is are likely to cost $18,000 per household.

In addition, they will revive National Energy Guarantee, a variation of the carbon tax which the Coalition repealed in 2013. That is likely to mean a further increase in wholesale electricity costs of about 50%.

For 25 years we’ve heard constant propaganda that subsidies to green energy will provide a transition path to the inevitable triumph of wind and solar over so-called archaic fossil fuel generators.

The foreshadowed cost competitiveness of renewable energy has failed to materialise, something that’s evident from its continued need for subsidies and additional spending, billed to consumers, on transmission and on market management measures to compensate for renewables’ inherent lack of system strength.

The upshot for Australia has been the destruction of what once was the lowest cost of electricity system in the world.

But there is more.  The ALP plan is to reduce all the economy’s emissions by 45 per cent, not just the 30 percent that come from electricity.

The other sectors include transport, agriculture and building.  In the case transport, the ALP is foreshadowing emission controls for cars with cost implications. There’s no indication about how the goals will be achieved for commercial vehicles or for planes and ships. But the cost will be colossal.

For agriculture a similar reduction in emissions to that of electricity would be required.  How will this be achieved?  Will we reduce our sheep and cattle herds by maybe in 30%, and return vast grain acreages to wilderness?

The ALP is living in a dream world. It is most unfortunate since they are likely to be elected into government next year and will seek to implement some of the absurd policies that they are proposing. The outcome will be much lower living standards and a likely reduction in the reliability of the electricity system we have come to rely upon.

 

 

 

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30 Responses to The ALP’s emission reduction dreams will strangle the economy

  1. Ubique

    And the $70 billion invested in renewables has modified the climate or limited global warming to what extent? After all, that’s the objective and not anything to do with emission levels.

  2. John Constantine

    Western industrial civilisation is the pollutant that threatens the health of the Tyrannies of the world.

    Therefore the political creatures bought and paid for by those threatened by first world western industrial civilisation will dutifully dynamite our industry and decivilise and rewild our settlements.

    Comrade Maaaaates.

  3. Rafe Champion

    Cheer up! they said, Things could be worse.
    So we cheered up and sure enough things did get worse.

    Coal the new asbestos.

    Bandt on Friday will compare coal to tobacco and asbestos. “When we found out tobacco companies knew their product killed but kept on selling it anyway, they got sued and they got regulated.

    “We once used asbestos in our buildings because we thought it was safe. But we now know better, so we have banned it. Now it is coal’s turn.”

  4. Bruce of Newcastle

    Let us just be clear about this.

    The spending on stupid renewables has quadrupled in just two years under the Liberal Party.

    With friends like these who needs the ALP?

  5. old bloke

    Looking at those figures, the biggest spend on ruinable energy came under Malcolm Turnbull’s leadership (14.775 billion $US). That represents $2,630 $AU per Australian household.

    Bring back Kevin Rudd, his $900 cheques weren’t such a waste comparatively.

  6. Leo G

    The outcome will be much lower living standards and a likely reduction in the reliability of the electricity system we have come to rely upon.

    Indeed. Economic development is built on the exploitation of energy and a system of distributing direct and indiect benefits. Labor, and others, seek to erode the efficient use of energy resources, while reducing fairness in distributing benefits.

  7. Snoopy

    To be clear, 50% electricty generated by renewables by 2030 will cut carbon emissions by 15%. To achieve a 45% reduction a further 30% cut must be found. I wonder if Granny Michelle can tear herself off Bill’s groin for long enough to ask where the cuts are going to fall?

  8. Critical Mass

    What next? A prohibition on all processes involving the production of carbon dioxide such as fermentation? Bread, beer, sauerkraut, soda water, crumpets, compost heaps, digestive processes?

  9. John Constantine

    What is the correlation between the increase in alex turnbullite’s wealth, and the increase in the allocation of australias wealth into ruinables under malcom turnbullites?.

    Their abc will run this graph, just as soon as they obtain it from get-up.

    Comrades.

  10. The Phoenix turned to ashes before it rose triumphant from the flames. Thus must the electorate suffer the consequences of its choices until it too rises from its torpor.

  11. cohenite

    What next? A prohibition on all processes involving the production of carbon dioxide such as fermentation? Bread, beer, sauerkraut, soda water, crumpets, compost heaps, digestive processes?

    All the above plus meat and cars. Basically you have to look at everything bad which global warming is alleged to have caused to see that ultimately humans are the problem and apart from selected virtue signallers the rest of have to bite the bullet.

  12. IRFM

    And don’t forget to reduce all of the native born ruminants such as all of our bouncing livestock; not to mention the feral camels, wild buffalo, pigs and brumbies in the National Parks.
    Maybe they can all be culled under a work for the dole scheme as designed by Sir Humphrey.

  13. IM

    And don’t forget to reduce all of the native born ruminants such as all of our bouncing livestock; not to mention the feral camels, wild buffalo, pigs and brumbies in the National Parks.
    Maybe they can all be culled under a work for the dole scheme as designed by Sir Humphrey.

  14. Mr Black

    Global warming was always a project of the socialists to force socialism on an unwilling west by means of “science” and “saving the planet”. Why should we be surprised that these evil people pursue policies that impoverish ordinary citizens? Isn’t that the goal of socialism, to make the masses dependent on handouts and the good graces of their rulers? Sadly we on the right are represented by people with absolutely no conviction of their own anymore, just endless talk about what might happen if they were ever crowned king for a day.

  15. RobK

    You are doing great work, thanks Alan.

  16. Amadeus

    Another galactically stupid idea from the clueless Shorten. What a brilliant way to waste such a massive amount of taxpayers’ money.
    Labor just keeps on giving and giving…

  17. Fred

    There’s no indication about how the goals will be achieved for commercial vehicles or for planes and ships.

    The only way to get a plane off the ground is by burning fossil fuels.

    Reducing carbon emissions from planes can only be achieved by flying less.

    The people might have been brainwashed into having solar panels on their roof, but to tell them they can never go on an overseas holiday ever again might finally lead to the downfall of the global warming scam

  18. manalive

    Over the past decade, we have spent $70 billion on wind and solar …

    Household off-grid cost estimates are hard to find but say $20,000.
    There are about 10 million households in Australia so for the $70,000,000,000 borrowed money around 3 million CAGW zealots’ households could have been set up and out of our lives forever.
    A bit like the plan to hand the ABC over to the staff, a lot of money but it would have been worth it.

  19. Roger

    I think you have this wrong, Alan.

    The ABC and the media generally regularly inform me and their millions of other viewers/voters that renewables are cheaper than coal and they never mention these subsidies you go on about.

    Are you suggesting they are ill informed, or worse, deliberately misleading us?

    On a serious note, while I don’t wish ill upon anyone, three years of AGW inspired economic vandalism under Shorten might be just what the voters of Australia need to wake them from their apathetic slumber.

  20. Tel

    On a serious note, while I don’t wish ill upon anyone, three years of AGW inspired economic vandalism under Shorten might be just what the voters of Australia need to wake them from their apathetic slumber.

    It’ll take six at least.

    Even then they will come up with excuses.

  21. NuThink

    What next? A prohibition on all processes involving the production of carbon dioxide such as fermentation? Bread, beer, sauerkraut, soda water, crumpets, compost heaps, digestive processes?

    When the elites work out that champagne bubbles are carbon dioxide they will switch to a beer bubbled with nitrogen.

    Guinness famously developed and popularized the process of infusing beer with nitrogen gas—a marriage that subtly alters a beer’s aroma and flavor while lending it a silky, creamy mouthfeel. How does nitrogen do this? It’s all about the bubbles.

    Most traditional beers are carbonated, a process that can occur naturally during fermentation. As yeast converts sugar to alcohol, it also produces carbon dioxide. That carbon dioxide—if the brewer chooses to trap it—infuses a beer with tiny gas bubbles that give it a lively, prickly texture akin to soda or seltzer water. Brewers can also add carbonation during the bottling or packaging process.

    Most nitro beers are mildly carbonated. But the addition of nitrogen—an insoluble gas that forms smaller, more profuse bubbles than carbon dioxide—gives beer a smoother texture.

    The very same elites should also realize that breathing exhales carbon dioxide. So by example they will show us how to not exhale carbon dioxide?

    Following the fermentation of grape sugar, we obtain a still white wine, that is to say non-effervescent (C02 escapes from open tanks).

    Now, for the Champagne, we assemble various vintages of wines from different grape varieties and years.

    Then added sugar and yeast (this is called sugar dosage), we then carry out a second fermentation accompanied by the release of C02.

  22. Dr Fred Lenin

    The turnbull liberal branch of the alp/gangrene globalist coalition has laid the groundwork for the global communist fascist wing of the party to complete the soros plan for world unelected governments , a good plan well planned and financed by renewabke carpetbaggers like the turnbulls ,gore. Goldman sachs soros and other useless criminals , I mean who the hell would vote for the mongrel bastards .
    Destroy fascist communism defund them ,scrap the renewable scam and they are stuffed ,then you can pick off the culprits one by one starting with soros as hes the oldest and should suffer before he dies of old age . Heard island could be a good place to detain them for life for the public good ,the threat of a life sentence there woukd deter the other Regressive fascist communists .

  23. Mark M

    Not only will it strangle the economy, it won’t save SA apple growers from extreme weather, no matter how many coal-fired power plants they blow up.

    23 Nov: Adelaide Hills Apple Growers Hit By Bad Weather
    https://www.powerfmsa.com.au/news/local-news/88046-adelaide-hills-apple-growers-hit-by-bad-weather

    23 Nov: Port Augusta’s Northern Power Station chimney stack demolished by explosion
    https://www.abc.net.au/news/2018-11-23/port-augusta-power-station-chimney-stack-comes-down/10547202

  24. John Michelmore

    Should we all join The Saltbush Club, Advance Australia and whomever else has some idea of a way out of this mess!

  25. iain russell

    If the clever clogs Germans can’t make the Energiewendung work, then what will our RCR Tomlinsons be able to do better?

  26. Herodotus

    It’s not just the media who are “the enemies of the people” – the climate & clean energy brigades are too.
    But until the lumpenproletariat are told the truth the big scam and the deterioration of our country will continue.

  27. Squirrel

    “Over the past decade, we have spent $70 billion on wind and solar.”

    It would be very useful to know just how many of those billions of dollars have gone offshore to pay for renewables technology which other countries can produce more cheaply and efficiently than ‘Straya.

    One of the biggest lies of the renewables spruikers is the pretence that if we spend enough public money on their schemes, a world-leading export industry will miraculously spring up to employ all the people whose jobs the spruikers are destroying.

  28. mareeS

    This whole fraud is scandalous, and if we still had mortal sins to answer for to a God it would be up there in the 10 Commandments.

    Our son works in the West Coast gas industry, they are hanging on to all their experienced skilled operators because there’s big mining expansion in the pipeline next year, meanwhile joint ventures with China are offering large $$$ in Mongolia and PNG to people like him with the right skills.

    He is on a satisfactory 2on/2off roster with good money at CFMMEU rates, but gee, there must be some big remote area projects coming up if they are headhunting skills like his in gas, mining, drilling, pipe laying etc at the rates they are offering.

    Nothing they are offering would get him to the Gobi Desert, he says. Pilbara and the NW Shelf are enough.

  29. Whalehunt fun

    The greens and the left of the ALP are the greatest threat faced by Australia. No legislation, no matter how extreme is unjustified in with the threat. Sadly criminalisation with severe penalties for the ownership or operation or promotion of renewable energy seem unlikely in the near future so we will have to endure until a sane government is eventually elected.

  30. Mundi

    Prolonged rising cost of energy has been a reliable indicator that a civilisation is declining.

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