Renewable Power Australia – How Many Billions Should We Donate To Warming Scaremongers?

Posted on Sat 04/11/2015 by

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Bolt New 01By Andrew Bolt ~

Alan Moran on the scandalous green rort that drives up your power bills so green alarmists can get rich:

The RET (Renewable Energy Target) issue is coming to a head in Australia. Bear in mind, the rationale for the scheme is a reduction in carbon dioxide emissions but it does this to a trivial extent and at a very high cost. The real rationale is now how to soak consumers for a dud product that could not survive in the absence of subsidies…

David Leyonhjelm points out:RenewablePower

Renewable electricity generators have received $9 billion in industry subsidies over the 15-year life of the RET, in addition to the price they receive for the electricity they produce. Without change, a further $22 billion will be paid by 2030. In the words of the Warburton Review, the RET is “a cross-subsidy that transfers wealth from electricity consumers and other participants in the electricity market to renewable energy companies”.

The renewable permits currently cost about $40 per MWh (roughly doubling the cost of raw energy available form fossil fuels) and the Senator notes that the fall back is a penalty charge of $65/MWh. (Actually that cost is $91 per MWh since it is not tax deductable). The more renewables are required the closer the price moves towards its $91 de facto ceiling…

Leyonhjelm has his own plan, which involves some sleight of hand. He advocates retaining the 41,000 but conditionally including within it hydro. This amounts to a reduction to about 26,000 GWh. He argues the small scale (rooftop) solar is likely to expand to 13,000 GWh (provision is in place for only 4,000 GWh) so wind is suddenly squeezed out.

Maybe. But the notion of 13,000 GWh small scale is dependent on the subsidy to renewables (it is paid up-front on the notional savings and goes to defray the installation costs).

In a nutshell the options are:

Abolish the scheme altogether with no further costs – this is my favourite and the Warburton report toyed with it but baulked. It would remove all costs.

Freeze requirements at the 16,000 GWh, the Warburton recommendation. This would mean a cost, at $40 per GWh, of $600 million a year.

Shift to something like the Leyonhjelm plan of 26,000 GWh at a cost of about $1 billion a year.

Go to the Minister’s proposed 32,000 or the industry “compromise” of 33,500 and the costs escalate, partly because this would push the permit prices up – probably to $60 plus, especially since the better understanding of the nature of the rort leaves it vulnerable to being cancelled in future years, something that requires a risk premium. Costs to consumers and other users become over $2 billion a year.

All this to pretend to stop a global warming that paused 17 years ago and probably won’t hurt if it resumes.

Idiocy, yet how few politicians dare say so.

UPDATE

For once Senator Jacqui Lambie might help limit waste rather than protect it – although she’s still buying the RET boondoggle:

Independent senator Jacqui Lambie has backed down from her vow to reject all government legislation, throwing her support behind the Coalition’s renewable energy target proposal.

Since November, Senator Lambie has carried out a “wage war” against the government, ­declaring she would oppose any ­Coalition bill until the Australian Defence Force pay increase was pushed to 3 per cent.

Tony Abbott increased the ­initial pay offer of 1.5 per cent to 2 per cent last month — still short of Senator Lambie’s demand — and restored all existing entitlements, including extra recreational leave and food and travel allowances, in December…

In a statement yesterday, Senator Lambie, in her first solid backing of a government policy in months, urged parliament to agree to the government’s final RET offer of 32,000GWh and said she believed the Coalition would find the six necessary crossbench votes if the Greens and Labor remained opposed.

Andrew Bolt is a journalist and columnist writing for The Herald Sun in Melbourne Victoria Australia.

Andrew Bolt’s columns appear in Melbourne’s Herald Sun, Sydney’s Daily Telegraph and Adelaide’s Advertiser. He runs the most-read political blog in Australia and hosts Channel 10’s The Bolt Report each Sunday at 10am. He is also heard from Monday to Friday at 8am on the breakfast show of radio station MTR 1377, and his book  Still Not Sorry remains very widely read.

Read more excellent articles from Andrew Bolt’s Blog . http://blogs.news.com.au/heraldsun/andrewbolt/

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