PLEA Network

17 March 2017, Energy & Climate Unit UK; Tilting at windmills: The energy debate down under. Battlelines have been firmly drawn in Australia’s power debate, with politicians backing their favoured energy sources like a die-hard footy fan his team. Against a backdrop of record temperatures, blackouts and high prices for consumers, the greatest casualty has been good policy. As a breezy sun-baked country with plenty of space, Australia is in many ways the perfect environment for renewable energy. Its steady growth over the past decade in particular has cut deeply into the business model of coal-fired power stations, which have previously been the mainstay of energy generation, but are largely coming to the end of their working lives. The coal industry is fighting for its existence, and the onslaught against the inevitable advance of renewable energy has been fierce. Cost and reliability Maximum temperature anomalies (difference from long-term average) for Australia from 31 January to 13 February 2017. Image: Australian Bureau of Meteorology The main lines of attack on renewables are two-fold: cost and reliability. Neither of these has much basis in reality. In terms of cost, the fact of the matter is that retail electricity prices in Australia have more than doubled in the last 10 years. Many people are struggling to pay bills, and disconnections have particularly hit the poor. The rise of renewable energy has frequently been blamed for the increased prices. However, analysis from the Australian National University comparing electricity prices across the states shows this is simply not the case. The ANU study shows absolutely no correlation between increased renewable energy penetration and rising cost. In fact, Queensland, the state with the highest proportion of coal and gas generation, also faced the highest growth in electricity bills. The state with the lowest increase in bills, Tasmania, also has the lowest levels of thermal power generation. Of course, price rises are not just related to generation, whether that be coal, gas or renewables. In sparsely populated Australia, network costs – the transmission towers and poles and wires – account for over 50% of bills. To a large extent, the gold-plating of network infrastructure has driven increases in cost. Read More here