Falling cost of renewables creates coal test for federal government
Brisbane Times
July 2, 2021
Output of wind and solar power is at record levels as renewables continue to squeeze fossil fuels from the energy market, new figures reveal, setting up a test for the federal government as re-elected Nationals leader Barnaby Joyce continues to push to prolong coal use.
More than 3700 megawatts of new wind and solar farms and 2500 megawatts of rooftop solar entered the main electricity grid in 2020, according to the Australian Energy Regulator, boosting wind and solar’s combined output to record levels now surpassing 19 per cent of the mix.
As the price of renewable generation continues to fall, Scott Morrison is facing a test on energy policy as Barnaby Joyce backs new coal-fired power.
The regulator’s latest figures, to be released on Friday, reveal the flood of renewables and accelerating clean energy revolution have contributed to wholesale power price falls of up to 58 per cent, with the average prices falling below $70 a megawatt-hour for the first time since 2015.
These price falls will add to the financial pain facing coal generators, which are more expensive to run than new wind and solar plants, and raise the risk of more coal-fired generators bringing forward their closure dates due to falling profitability.
Citing a CSIRO study, the regulator said wind and solar generate power at less than $90 per megawatt-hour, even when the cost of transmission lines and backup storage was factored in.
RELATED ARTICLE
Mr Joyce infuriated Liberal MPs by lodging a formal amendment in Parliament today to overturn the longstanding limits on the Clean Energy Finance Corporation spending money on fossil fuel projects.
Nationals spark Liberal fury over bid for renewable fund to invest in coal
A new black or brown coal-fired power plant was more expensive, costing at least $90 a megawatt-hour, and up to $140, it said. When carbon capture and storage was included, to neutralise a plant’s carbon emissions, the generation cost ranges up to $300 a megawatt-hour.
“The National Electricity market is moving rapidly from a centralised system of large coal and gas generation towards a mixture of smaller scale, widely dispersed wind and solar generators [and] grid-scale batteries,” Australian Energy Regulator chair Clare Savage said.
The regulator noted no new coal plants had been built in Australia since 2012, but Nationals leader Barnaby Joyce called for more coal power stations in his first week after being re-elected to the party’s top job, despite Prime Minister Scott Morrison indicating he would oppose such a move.
When asked by Alan Jones on Sky News if Australia should use coal power, the Deputy Prime Minister said “I think we absolutely need high-efficiency, low emissions coal-fired power stations”.
With Mr Joyce back leading the minor Coalition party Mr Morrison is wedged on energy policy. The pro-coal Nationals warn against more ambitious climate policy, while Liberal MPs like Warren Entsch, Jason Falinski and Trent Zimmerman are urging the government to promote clean technology and set a deadline to reach net zero emissions.
RELATED ARTICLE
Nationals leader Michael McCormack has been put in a difficult spot by Matt Canavan’s renewed campaign for a new coal-fired power station.
Nationals’ coal crusade an expensive political fantasy
Mr Joyce angered his Liberal colleagues in February when he lodged an amendment in Parliament to use a $1 billion fund administered by the Clean Energy Finance Corporation to build a coal-fired power station.
While the federal government has funded a study into the feasibility of a private coal plant in Collinsville, northern Queensland, there are currently no plans to build it. However, Nationals Senators including Bridget McKenzie and Matt Canavan are calling for the government to use public funds to underwrite construction.
Power generation is a dominant source of Australia’s greenhouse gas emissions, and the influx of renewables and impending closures of coal-fired plants will help reduce the carbon footprint of the fossil fuel-intensive energy market, which relies on coal and gas for about 80 per cent of the nation’s needs.
RELATED ARTICLE
AGL’s fleet of coal and gas-fired power stations are Australia’s heaviest source of emissions.
Energy
AGL splits off coal power stations as green shift accelerates
However, the prospect of sooner-than-expected shutdowns of coal-fired power plants has also sparked warnings across the industry about the danger of blackouts or price spikes in the future unless there was greater investment in “dispatchable” assets to replace them. These include facilities such as gas generators or big storage batteries, which are able to supply on-demand electricity in times when weather conditions for wind and solar power are unfavourable.
The Group of Seven (G7) advanced economies committed at its June meeting in the UK to cease direct government funding at home and abroad for any new coal plants that did not include carbon capture technology, including a $US2 billion fund to help developing nation
Forum
Pages: 1
Falling Cost Of Renewables Creates A Coal Test (Read 250 times)
