Did you know that Qld with virtually no wind nor large-scale solar had the most expensive wholesale power prices?
That over 90% as a minimum of its power comes from coal and gas generators owned by the state Govt? That the AEMO has outed them repeatedly for manipulating prices to gouge the state's power users?
AND that finally the Qld State Treasurer ordered them to stop manipulating the bidding system and subsequently wholesale power prices in Qld have fallen more than 30% (after allegedly one very large and important customer threatened to launch an ad campaign outing them until it stopped)?
Nothing to do with renewables and everything to do with no legal requirement against collusion in bidding to set the power price.
Someone else can provide the dirty backup power.
renewables as a backup?. Unreliable.
Actually, you are wrong about that.
Storage means (and has meant) much more than batteries but the current frenzy is adding 1 + 1 and getting oranges.
Australia has had electricity storage for decades, as well as renewable storage for decades. They are in use 365 days a year and 24 hours a day most days.
They are called hydro-electric dams. Some are run-of-river and others are not.
Some are referred to as Pumped Hydro - these are the truly "renewable storage" sites where when power prices are below a trigger level the facility buys power back from the grid and pumps the water back uphill from a lower level storage dam or lake etc. Rule of thumb - it takes 1.5x the power to pump it back up as it generates letting the water flow back down.
Pumped hydro has a 100% reliability rate and is able to be brought into production, as back-up power, in a fraction of the time required for either coal-fired or gas plants. In the summer 'panic' earlier this year numerous coal and gas-fired generators failed leading to them shutting down while the dams, wind and solar took the load. All detailed in the various reports, and even by Josh.
Back on Feb 10 - the day of feared blackouts due to the East Coast heat...
Qld was generating over 8,400 MW from their coal and gas plants and just 153MW from all of its hydro. Wivenhoe alone is 500MW
Battery backup?. Batteries just timeshifts the supply. It's not a reliable backup when it's capacity is only for a few minutes. If the sun don't shine, you cant just import it from where the sun is still shining - Sydney importing from Perth?. And what happens when both Sydney and Perth are in the dark?
Similarly for wind. Battery backup?. Batteries just timeshifts the supply. It's not a reliable backup when it's capacity is only for a few minutes.
The AEMO (and others) have pointed out that despite Qld having extensive hydro capacity and pumped storage. The state owned generator that controls the lion's share did not use it to produce even 1MW hour's worth on over 40 times the wholesale power price for Qld reached $14,000. Not even 1 KW hour even. Remember Wivenhoe is a 500MW plant operated by CS Energy. CS Energy also operates Caliide A & B, and Kogan Creek coal generators. Have a look at this:
Sure helped the profits on the coal fired plants though while Wivenhoe sat generating nothing. Odd how they bid to PAY $1,000 to be allowed to produce power for one five minute period and then bid to charge $14,000 for the very next period and at the same time Alinta increases its price from $45 to $13,400.
Then they each bid for the following period -$1,000.
So how did their profits do?
Well over that 15 minute period CS Energy earnt 226 x [(14,000-1000-1000)/3] x 0.25 (0.25 = 15 minutes out of 60 minute hour)
So the price they received averaged out at $4,000 per MW hour for 15 minutes and for Alinta at over $4,100.
A five minute anomaly saw profits of over $350,000 greater than normal. Amazing how in one 5 month period adding up all these 'anomalies' resulted in excess profits of $173m (
I made a typo in a post above and had it $273m ).
The issue about the Lithium ion batteries has nothing to do with them being built for use as 'back-up' power for the entire state for an extended period. That is not what the tender documents outline btw.
The 129MW hour, 100MW battery is to act as an emergency back-up when say Pelican Point stops generating without any apparent reason and the power price spikes to $14,000 per MW hour for that next 5 minute power bid. Strangely enough, these unexplainable (despite 3 different investigations) events cost SA power consumers dearly but see the generators (including wind and solar BTW) make a few extra million as their profit margins increase 150 to over 5,000 times.
The battery can deliver the power to the grid before any human has even noticed that a generator has stop working - in thousandths of a second. It is so rapid that sitting in your office or home you do not see the lights dim. The outcome of this battery stepping in, if it had been in existence in 2016 would have saved the state's consumers north of $50m if set to intervene only when the power price rose above $12,499.99 per MW hour.
It is not intended to be in use providing power day-in-day out - it is there to stop the generators gaming the market. Please read the AEMO report into what the Qld State generators were doing and then you will see that the SA State Govt has called the generators bluff. The SA State Govt gave them plenty of time to allow the wholesale power prices to fall in SA - but the generators did not blink. They've killed the fatted calf now.
In Qld all it took was the State Treasurer to tell the State-owned generators to stop and the price fell over 30% recently and has stayed there. They're still using hardly any hydro though. Hope Brisbane doesn't get flooded out again...
Nem Watch : RenewEconomy