Solar power is driving down daytime prices – which used to provide much of the income that coal plants needed to make a profit. Energy storage will further reduce the scope to profit from high and volatile electricity prices, previously driven by high demand and supply shortages in hot weather, or when a large coal-fired generator failed or was shut down for maintenance at a crucial time.
There is now plenty of evidence that the diverse mix of energy efficiency, demand response, energy storage, renewable generation and smart management can ensure reliable and affordable electricity to cope with daily and seasonal variable electricity loads. New traditional baseload generators will not be financially viable, as they simply won’t capture the profits they need during the daytime.
The government is now focused on AGL and how it will deliver 1,000 megawatts of new dispatchable supply. In practice, appropriate policy action would facilitate the provision of plenty of supply, storage, demand response and energy efficiency to ensure reliable supply. But the government is unable to deliver policy because of its internal squabbles, and AGL looks like a convenient scapegoat.
Thursday, September 14, 2017
The energy issue
The fact that Steve Kates (and Sinclair Davidson) work at RMIT makes me deeply suspicious about the entire staff at that institution, but this other guy who is a "Senior Industry Fellow" (?) there is about 180 degrees from them when it comes to energy policy, and he makes this reasonable sounding point today in The Conversation: