I have a piece in the Spectator addressing the Clean Energy Finance Corporation (CEFC), just one government institution in the energy space that is poisoning the market with selective support to otherwise non-viable investments.
The CEFC last week loaned $160 million to finance the Neoen 300 MW Victorian Big Battery under the new System Integrity Protection Scheme.
The Victorian Government required the battery to relieve the adverse impact on reliability imposed by its growing requirements for high-cost renewable energy. The costs of the Big Battery – like those for renewables themselves – are folded into electricity bills so that the government can avoid the obloquy for the high bills its policies create. Not only that but CEFC, on behalf of the Commonwealth taxpayer, provides funding with via subsidised loans.
“So, politicians, seeking to placate green activists inside and outside their own parties, foist onto the electricity consumer costly and unreliable wind and solar. By forcing out of the market low cost and reliable coal generation, this raises electricity costs. The supply of wind and solar also causes the system to become unstable since, unlike coal, gas and hydro, its supply is variable and uncontrollable. This requires further costly measures like Snowy 2, new transmission systems, reserve power schemes administered by the market manager and now the Big Battery. All of these magnify the original damage.”
The governments concerned hope that the blackouts caused by renewable requirements in South Australia, California, and now Texas, will be avoided. And the subsidy seekers have a chorus of media affiliates ready to tell us with each such blackout that the cause is legacy coal plants, unusual winds gas freezes and so on. The lie of this, regarding Texas, is readily seen from the data, which shows the drop off of wind just prior to the blackout and the expansion in gas supply notwithstanding some gas plant failures.
And just to keep up the momentum of value-destroying spending, today, Minister Taylor announced yet another $50 million funding transfusion to carbon capture and storage. A continuation of the nation’s prosperity being looted by politicians seeking to placate the green blob!