Renewable Power Australia – Alcoa: Warmist Politicians Spend More Money To Fix What They Broke

Posted on Wed 12/21/2016 by


Bolt New 01By Andrew Bolt ~

Here in Australia, Victoria’s Labor Government, led by Premier Daniel Andrews, drives the giant Hazelwood coal-fired power station out of business with its insane global warming policies. With power prices now soaring, it is offering $200 million to keep open an aluminium smelter which can’t survive the logical consequences of its folly.

Madness on stilts:

Federal Industry Minister Greg Hunt and his Victorian counterpart, Wade Noonan, were due to meet overnight with the aluminium company’s chief executive in New York to lay out a package of government support to help the smelter recover from a power outage that shut its potlines three weeks ago.

The proposal is believed to ­include $200m from the Andrews government, a possible $30m from the federal government and the continued offer of low-­interest loans from the CEFC.

But what makes this so insane is that all this taxing and spending and pain is actually for nothing. It makes no difference to the climate.

Alan Moran counts the cost:

RenewablePowerElectricity from renewable ­energy costs three times as much to produce as electricity from coal and gas. For this year, the AEMC estimates the cost of existing federal and state renewable energy programs for the average household’s electricity bills at $191 in Queensland (7 per cent of the bill), $109 in NSW, $91 in Victoria and $155 in South Australia.

But these are only the direct costs. The indirect costs, in ­addition to renewable energy’s ­innate unreliability, are greater.

In the first place, this is because electricity market rules mean wind and solar will always run when they are able to do so. This forces other suppliers into stop-start operations, which coal and gas baseload power stations cannot easily accommodate. Those stations are being forced to close and each such closure ramps up the wholesale electricity price.

The AEMC estimates that next year the closure of Hazelwood in Victoria will cause a cost increase of $200 for each household in the state, with lesser cost increases in other jurisdictions.

Second, wind generators ­require increased network spending. The electricity market operator has put a $2.2bn cost on new transmission lines to link Victoria’s proposed wind generators to the grid. This stems from the wind generators wanting to locate in areas where there is weak transmission capacity.

Andrew Bolt writes for the Herald Sun, Daily Telegraph, and The Advertiser and runs Australia’s most-read political blog. On week nights he hosts The Bolt Report on Sky News at 7pm and his Macquarie Radio show at 8pm with Steve Price.

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