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
Tag Archives: consumption
29 March 2017, The Conversation, Hazelwood closure: what it means for electricity prices and blackouts. Victoria’s Hazelwood power station will be shut down this week after nearly 50 years of supplying electricity. The imminent closure has led to concerns about blackouts, raised most recently by Deputy Prime Minister Barnaby Joyce, and rising electricity prices. So what does the evidence suggest? Blackouts ahead? Last week The Age reported that Victoria is facing “72 days of possible power supply shortfalls over the next two years”. While that sounds bad, it does not mean the state is facing imminent blackouts. This was based on a report from the Australian Energy Market Operator (AEMO), which is in charge of making sure that Australia’s energy markets work. Every week, AEMO produces something called the Medium Term Projected Assessment of System Adequacy. This report assesses the expected supply and demand of electricity for the next two years. In a recent report, AEMO did indeed forecast a “reserve shortfall” for 72 days in Victoria in the coming two years. AEMO has actually been forecasting many days of reserve shortfall, since early November last year when Engie announced the closure of Hazelwood. AEMO has also been forecasting an even greater number of days of reserve shortfalls in South Australia for well over a year. The shortfall forecast is based on a combination of factors. This includes the amount of local energy supply, the import and export of electricity from other states, the maximum daily demand for electricity, and the “reserve requirement”. The reserve requirement is essentially “spare” capacity that can be used to maintain a reliable supply if something goes wrong. If there is not enough supply to meet this requirement, there is a reserve shortfall. Forecasting maximum demand is incredibly challenging and uncertain. AEMO does it by using probabilities. This gives us a measure of the probability of a particular demand forecast being exceeded in a year. For example, a 10% chance would be expected to be exceeded one year in ten. A 50% chance would be expected to be exceeded one year in two. To illustrate the point, AEMO forecast that demand over the past summer in Victoria had a 10% chance of exceeding 9,900 megawatts. In reality, the maximum demand was only 8,747MW. That’s not to say the forecast was wrong, but rather that it was not an exceptional (one year in ten) summer. Read More here
29 March 2017, Renew Economy, How AEMO’s new boss will reform Australia’s energy vision. Audrey Zibelman, the new chief executive of the Australian Energy Market Operator, has been in the job for little over a week, but is already making her mark, signalling the biggest shift in energy management philosophy in a generation. If Australia’s fossil fuel industry had hoped that last September’s state-wide blackout would lead to a u-turn on the shift to cleaner and decentralised energy system, then the release of the Australian Energy Market Operator’s final report in the event would leave them bitterly disappointed. And if they had any thoughts that the new CEO of AEMO, Audrey Zibelman, was going to afford them the indulgences that they had gotten used to over the last few decades, then they are going to be disappointed on that too. Several hundred energy market participants converged on Adelaide’s Hilton Hotel on Wednesday to hear the findings from the final report into the now notorious system black and, more crucially, to hear the first public insights from the new AEMO boss. “Thank god you’re here,” said the Grattan Institute’s Tony Wood, referring to a former TV program, but echoing the mood of most. And while many in mainstream media chose to focus on the role of wind farms in South Australia’s “system black,” and wonder why the shuttered Northern coal fired station is not being fired up again, both AEMO and its new boss were looking to the future, and with a sense of urgency. Zibelman is the former head of New York’s Public Service Commission, charged with implementing that state’s ambitious Reforming the Energy Vision program, and its target of 50 per cent renewable energy by 2030, which is going to focus a lot on decentralised generation. “When I arrived on the scene in New York, it was just after Hurricane Sandy,” she said in her opening comments on Wednesday. “After seeing New York city witout electricity for a number of days and people living in 40-storey buildings walking down to get water and cell phones charged – these were not young people, these were grandmas and granddads – it was clear that this industry was going to have to fundamentally change.” And Australia, she says, is actually going to lead the world on this, both on the breadth and the scale of what she, chief scientist Alan Finkel and many others describes as the inevitable and unstoppable energy transition. “We built systems in the 20th century around large centralised power plants,” Zibelman said. “That made a lot of sense. Now the industry is changing, cutomer preferences are changing, choices are changing, so we are creating what lot of people are calling the internet of things. “The idea is that you need to create a very flexible network that can respond in real time, and truly real time, to a lot of different events and a lot different sequences. “That is going to need a whole different approach … and my excitement about Australia is that, quite frankly, Australian is going to be leading the world on this.” Read More here
23 March 2017, Renew Economy, Fairfax joins media hysteria over post-Hazelwood “blackouts”. The warnings of blackouts provoked by the imminent closure of the Hazelwood brown coal generator in Victoria– already so prevalent on right wing blogs, the Murdoch media and the ABC – reached fever pitched proportions on Thursday. Fairfax Media led the front page of The Age newspaper (see image right) with an “exclusive” story that warned of 72 days of potential blackouts across the state over the next two summers. “Victoria’s energy security has been thrown into question, with the state facing an unprecedented 72 days of possible power supply shortfalls over the next two years following the shutdown of the Hazelwood plant next week,” the story by Josh Gordon begins. And how does it come to this breathless conclusion? Fairfax, like other media, such as the ABC’s political editor, Chris Uhlmann, is basing the forecasts of blackouts on this graph that appears on the website of the Australian Energy Market Operator. It purports to show – in the light red at the top – the periods when Victoria could face a shortfall of supply. The graph for South Australia is even more dramatic. But is that really what is says? Blackouts all summer? Not at all, says the AEMO – a reply they would happily give anyone who bothered to ask. It actually shows the most extreme demand scenarios that it can think of – a one in ten year likelihood in this case – and graphs that over and above what it considers to be the “average” supply. Repeat. That is average supply, not total supply available. Assuming this would lead to blackouts is a bit like saying that someone who walks to the ocean edge at low tide risks getting wet when the tide comes in, and they don’t move. There is plenty of excess capacity that can meet that demand. This graph, is a section known as its Mtpasa forecasts, is basically a heads up that the tide will come in, and generator owners might want to think about maintenance planning, switching them on etc etc, to take it into account. Read More here