ENERGY Regulator Report : Hazelwood Coal Plant Shutdown Drives Record Power Price SurgePosted: March 30, 2018
ENERGY rationing has always been a key feature of the Left’s misanthropic agenda of
depopulation deindustrialisation, enforced through punitive emissions controls, protected by the indisputable cloak of ‘climate change’ – the emotionally powered eco-cause engineered by the environmental movement in the 1970’s who realised that doing something about supposed catastrophic man-made global warming would play to quite a number of the Left’s social agendas.
EHRLICH also wanted to poison black African’s in order to fight climate change. But, we’ll leave that conversation for another day. Ahem.
FORMER Australian PM Julia Gillard, who implemented Australia’s ill-fated 2011 carbon tax, was open in expressing its core function to ‘drive substantial changes in patterns of energy production and energy use.’
GILLARD’S ideology synonymous with another well known eco-doomsayer and the creator, fabricator and proponent of global warming – UNEP’s founding father Maurice Strong:
“Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?” – Maurice Strong, founder of the UN Environment Programme (UNEP)
“Current lifestyles and consumption patterns of the affluent middle class – involving high meat intake, use of fossil fuels, appliances, air-conditioning, and suburban housing – are not sustainable.” – Maurice Strong, Secretary General of the UN’s Earth Summit, 1992.
IN 2016, Victoria’s premier Dan Andrews took his State one step closer to Ehrlich and U.N. Strong’s energy-free utopia, with the closure of Hazelwood coal-fired power station, culling 22% of Victoria’s cheap, reliable energy supply and flipping the state from a power exporter to an importer.
COAL-fired power plant closures have become the order of the day for Australia’s virtue-signalling and global warming theory-obsessed political class who think that destroying the country’s industrial heartland, and imposing crippling energy-poverty on its citizens is a worthwhile price to pay for “saving the planet”.
“Victorian wholesale prices were the highest on record and were up 85 per cent in 2017. New South Wales prices rose 63 per cent, Queensland was up 53 per cent and South Australia up 32 per cent.”
Matt Chambers writes in The Australian on the report from the Australian Energy Regulator on the record surge in power prices:
The abrupt closure of the Hazelwood brown coal-fired power station in Victoria last year caused record wholesale power prices and flipped the state from a power exporter to an importer, the Australian Energy Regulator says.
But, in a report to the COAG Energy Council, the energy watchdog found no evidence of opportunistic or anti-competitive behaviour from remaining generators, despite the reduced competition.
“The impact of the Hazelwood closure has been, and continues to be, significant right across the National Electricity Market,” AER chair Paula Conboy said.
“High wholesale prices in the NEM are not unprecedented and indeed have been higher in the past, but the 2017 increases were sustained over the year and occurred simultaneously across the NEM.”
Victorian wholesale prices were the highest on record and were up 85 per cent in 2017. New South Wales prices rose 63 per cent, Queensland was up 53 per cent and South Australia up 32 per cent.
“The replacement of Hazelwood’s low-cost brown coal generation by higher-cost black coal, gas and hydro generation — coinciding with rising black coal and gas fuel prices during the period — was found to be the underlying driver of the wholesale price increases,” Ms Conboy said.
From the middle of the year, Victoria became a net importer of electricity for the first time in nearly 10 years, with increased imports of gas generation from South Australia, and black coal generation from NSW and Queensland.
“Our analysis did not identify instances where bidding behaviour normally associated with the exercise of market power significantly affected average prices,” Ms Conboy said.
The report found price offers from remaining Victorian generators were largely unchanged, with some gas-fired generators moving capacity to lower price bands.
But the AER said it would need to monitor longer-term issues.
“Ownership in the South Australian and Victorian markets is concentrated, with a few, largely vertically integrated participants controlling a significant proportion of capacity in both regions,” the report said.
The AER said it was too early to tell if prices will stay high.
The report was commissioned by Scott Morrison and Energy Minister Josh Frydenberg to monitor the behaviour of generators in the wake of the rapid closure of Hazelwood, by France’s Engie, in March 2017, just four months after notice was given.
The Australian Energy Council, a lobby group representing major electricity and gas businesses, said the AER report supported the industry’s explanation for higher power prices.
“The AER did not find any abuse of market power, withholding of capacity or shift to offering higher prices for the same capacity,” AEC chief Matthew Warren said.
“Ultimately, higher-priced generation had to fill the supply gap and set the price more often, which is unsurprising when a large, cheap generator leaves the market.”
NO mention of RET and REC subsidised and mandated wind and large scale solar farms on the forced economic closure of Hazelwood and no mention of the cost, chaos and instability caused by intermittent weather dependent unreliables. Though, cost, chaos and instability are par for the course when all you have left is windmills and solar panels to ‘power’ your grid.
MEANWHILE, the rest of the sane world continues its rapid expansion of clean coal-fired power plants to guarantee cheap, reliable energy supply for industry and households and to maintain economic growth, international competitiveness and boost living standards. This group ironically includes green-energy obsessed Germany, whose disastrous €Trillion Energiewende experiment has decimated its industrial heartland, leaving more than a million German households axed from the grid, unable to afford electricity, with an added 328,000 left powerless in just 12 months…
AUSTRALIA’S political elite and the climate-obsessed mainstream media should take a closer look at that enduring quote on insanity:
“Insanity: doing the same thing over and over again and expecting different results.” – Unknown
See also :
Energy Poverty related :
- ENERGY Poverty Insanity : Struggling Families To Subsidise Solar Panels For The Rich | Climatism
- ENERGY Prices Double In A Year In Victoria And South Australia! | Climatism
- POLITICIANS Mad With Global Warming Theory Are Destroying The Economy And Hurting The Poor | Climatism
- IT’S OFFICIAL : South Australia Has The World’s Highest Power Prices! | Climatism
- UNRELIABLE Energy – Wind and Solar – A Climate Of Communism | Climatism
- THE Insane Result Of The Mad Switch To Costly, Symbolic, Unreliable Energy – Wind and Solar | Climatism
- CHEAP ENERGY – Australia’s Greatest Economic Advantage Sacrificed At The Altar Of Climate Change | Climatism
- A Totally Idiot Made Electricity Disaster | Climatism
- South Australia Blackout Report : Green Energy Failure | Climatism
- Australian Summer Forecast: More Blackouts & Rocketing Power Prices | Climatism
- WESTERN Nations, Driven By A Global Agenda Of Climate Alarmism, Are Destroying Their Industries With Carbon Taxes And Promotion Of Expensive, Intermittent Green Energy | Climatism
Energiewende Fail related :
- Energiewende | Climatism
- TRULY GREEN? How Germany’s #Energiewende Is Destroying Nature | Climatism
- Regrets: Fritz Vahrenholt – German RE Pioneer Demands End to Chaotic Wind Power Push | Climatism
- ENERGIEWENDE : €1Trillion Low Carbon, Environmentally Sound, Reliable, Affordable Energy Transition Report Card | Climatism
- “Green” Germany | Climatism
World Coal-Fired Power Surge related :
- GREEN ENERGY FAIL – World Coal Power Development Up 43% | Climatism
- Japan Infuriating Enviros By Building 45 New Coal Power Plants | Climatism
- $7.5bn worth of coal-fired power plants planned for Vietnam | Climatism
- Coal To Remain India’s Main Energy Source For At Least 30 Years, Govt Confirms | Climatism
- China’s Production Of Electricity From Coal Surges To Record Levels | Climatism
- GREEN ENERGY FAIL : “We’ll Burn Coal Till The 2040s” – German Minister | Climatism
(Climate rationalists are still waiting for that “big oil” cheque to arrive in the mail!)
Click link for more info…TQ! Jamie 🙂