It is positive for our electricity grid and power prices that a group of Govt MP’s has spoken the unspeakable and suggested building a new coal fired power station.
However that seems premature right now.
Closing Hazelwood has more than doubled the Vic AEMO wholesale price and has made Vic prices now the most expensive of the three big coal burning States. Comparing Jul-Dec2016 prices to Apr2017-Mar2018.
The elephant in the room right now is securing the normal operation and maintenance of Liddell past 2022.
The owners of Liddell are AGL who have only a nominal valuation on Liddell and clearly can not be relied upon to maintain it properly. The Govt could buy Liddell but it is a lame duck and if they needed to pass anything through the senate probably could not do that. Alinta and Delta are expressing interest in buying Liddell but AGL is saying it wants Liddell.
Around that issue the lies and misinformation need to be waded through and sorted.
One issue is I think there is zero chance AGL could replace the 1800MW of Liddell by 2022.
Something needs to be put in place soon to get Liddell off AGL because we will have a new Labor Govt by the end of 2019 the way polls are heading. Labor will not stop AGL shutting Liddell and the nation will be further harmed as prices will be pushed higher as they were when Hazelwood closed.
We were lucky last summer heat waves were moderate, few and often on weekends so resulting price spikes were not severe. As we leave summer heat price spikes behind the Govt has the best chance to keep talking up gas supplies and talking down electricity prices but they seem so confused – for example thinking that massive spending on Snowy 2.0 will somehow lower prices.
via Errors in IPCC climate science
April 5, 2018 at 03:35AM