Rafe Champion guest post. Carbon taxes and RE fails as usual in SA.

Alan Moran published an account of the carbon taxes that both the Coalition and the ALP support. In The Spectator he spelled out the cost of two forms of carbon taxation that we have at present and on top of that the ALP is determined to impose a great deal more.

Read the story here Stoking the fires of energy policy

The existing taxes arise from the RE mandates that increase the amount of wind and solar power in the mix and associated costs that arise from the additional transmission infrastructure required to service dispersed sources of power. Secondly there are taxes to support grants and soft loans dispensed by agencies like the Clean Energy Finance Corporation.

The ALP spelled out their vision for increased power costs in a document called Powering Australia which represents a triumph of aspiration over reality. To quote, it will close the yawning gap between our current Federal Government and our business community, agricultural sector and state governments when it comes to investing in the renewables that will power our future.

Our plan will create 604,000 jobs, with 5 out of 6 new jobs to be created in the regions.

It will spur $76 billion of investment.

It will cut power bills for families and businesses by $275 a year for homes by 2025, compared to today.

Moran pointed out that the $78 billion to “rewire Autralia” is nearly four times the asset value of the existing NEM system in SE Australia and the cost of that “investment” will be a charge on taxpayers.

As to the reality of plans to increase the RE capacity and replace the poor old clapped out coal burners, have a look at the situation in South Australia just before sunrise this morning.

While the wind across the NEM was running at 20% of capacity (2/3 of the average) and delivering 10% of demand, in the wind leading state there was a wind drought (3% of capacity), with 60% of demand provided from Victoria while 80% of local generation was gas and (unusually) they were burning oil as well!

Wind was low in Victoria as well, running at 15% of capacity (half the average) while the much maligned coal burners kept the lights on, running at 75% of capacity (they can manage 100% when necessary.)

This is the The Spectator piece. Stoking the fires of energy policy

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April 26, 2022 at 06:01PM

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