Wind Generation and the Electricity Grid

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Coal power demonised. Increase the investment risk of carbon.
No investment in coal baseload
Coal generators are charged a penalty for every MW
Subsidies in renewables and a policy driving renewables reducing investment risk
Coal baseload end of life not renewed - replaced by renewables.
Renewables is not baseload so build gas which can jump in at nearly a moments notice
Renewables guaranteed that their production is going to be used. Therefore gas generators are the new monopoly holding the last MW back for the highest price.
Poles and wires gold plated so much more attractive to privatisation
Gas also almost exclusively exported with no domestic reservation

Yes the market is broken, because not all energy sources are able to compete on a level playing field.

All the while people tonight cannot afford to turn on electricity to stay warm.
 
And although Scotland phased out coal 12 months ago prices are rising-
https://www.theguardian.com/business/2017/feb/10/scottish-power-customers-to-be-hit-by-78-price-hike

https://www.uswitch.com/gas-electricity/guides/scottish-and-southern-energy-price-changes/

Notice no price rise for gas.
But-
https://www.theguardian.com/environ...ee-years-study-subsidy-cuts-emissions-targets

Oh,renewable subsidies being cut in the UK.Just maybe that has something to do with price rises.

Being the pedant, I always like to look at trends over longer periods than I see people making claims about. A bit like when some Govt claims hospital waiting lists have fallen for example. fallen since when?

So what has happened to UK gas and electricity prices over say 4 or 5 years or more? Is the latest price rise just like we're seeing in Australia - just another in a long line of rising power/gas prices? Or is it something different?

Well, guess what....
2017 07 26 UK Retail Energy prices.jpg

Note -

1) Six largest suppliers had all cut their prices for their 'competitive' offers from Jan 2012 through to Jun 2016 while their 'standard' (aka buyer beware) tariff had hardly moved.
2) For most of the period their cheapest offers were comparable with the cheapest on the market (very different to the Australian case).

and

Below - gas prices fell by over 60% in the UK whilst in Australia they increased by over 100%. On an indexed basis the UK went from 100 to 42 and Australia from 100 to 227.

Move on, nothing to see here!

2017 07 26 UK Retail Gas prices.jpg

During the same period where retail prices for gas and electricity have doubled in Australia - in the UK they fell by up to 60% (2nd graph).

Then once it was announced there would be less competition from new wind farms going forward - something strange happened. Power prices started rising again.

What a coincidence. You don't suppose that the greed (thirst for bonuses and salary increases) exists in the companies that operate multi-billion GBP wind farm generation companies just as much as it does in generation companies with gas plants?

No, of course not.

So in a country where wind farms provide around 40% of all electricity produced in 2016 - power prices had fallen. How can that be?
 
Except that "renewables" provided 39% of Scotland's electricity production.You forgot that that includes Hydro and solar.Plus Nuclear supplies 33% of power produced.
Plus you also skipped over my salient point-subsidies for renewables are going to be cut.Your "low"prices don't take into account the subsidies.

Also there is a little reported provision in the Finkel report that I am sure will cause something dear to your heart RAM.That is wind and solar generators be responsible for supplying dispatchable power.Already the Industry is grumbling-
“Many new renewable energy and energy storage technologies and solutions are now available to help manage energy security,” Clean Energy Council chief executive Kane Thornton said in a statement.
“We need to accelerate smart reforms to encourage this rather than introduce punitive measures that would force renewable energy projects to include backup power, stifling innovation and unnecessarily driving up costs,”
Finkel: Storage burden falls on wind and solar farms, not system : RenewEconomy

And again later in the article the deliberate misrepresentation of costs suggesting wind is cheaper.Of course every Mwh produced by fossil fuel generators requires the forfeit of a REC whilst every Mwh produced by wind or solar is granted a REC.Those peaked at $93-a difference between fossil fuel and renewables of $186 per Mwh.No wonder since Finkel though the price of RECs is going down.

But RAM you will be in your element with corrupt Energy companies and corrupt/stupid politicians all out to protect their patch.Oh so much you will be able to investigate.Heaven.
 
Dear drron I seem to have touched a raw nerve - sorry about that.

I responded to (and included) your post that referenced the UK and provided factual information from the UK energy regulator showing price falls for many years.

Apples do not equal oranges.

You had quoted rising UK power prices for the latest 12 months and I pointed out that they had fallen consistently for the previous 4 years so over the five year period they were roughly half the levels of January 2012 vs Australia at over 200%.

Do you not agree picking 1 year in isolation can be a little misleading in making a claim about renewables driving up prices? Drawing the same bow then hadn't they driven down power prices for the previous 4 years while in Australia prices went up the entire time?

Except that "renewables" provided 39% of Scotland's electricity production.You forgot that that includes Hydro and solar.Plus Nuclear supplies 33% of power produced.

leaving the semantics of the method of measuring percentages - do you agree that while the proportion and absolute amount of electricity produced by wind predominantly (between 60% and 73% of total renewable production in 2015,2016 and the first half of 2017) increased that the price of electricity fell in 4 out of 5 years?

Doesn't that defeat your claim that increasing renewables drive up prices? That was after all what 95% of that part of my response dealt with (including the graphs from the regulator showing the prices etc).

Also, many of the wind farms have entered into fixed price contracts for their output - their prices are locked in and only prospective wind farms are impacted by the change. Until they are built the output of new reduced-subsidy wind farms have ZERO impact on prices. At the moment 100% of wind and other renewable production is not affected by the changes for new projects - the existing ones operate with their existing locked in subsidies (just as the nuclear and gas plants do with their larger subsidies).

So the spike in prices over this latest year are due to something else.

I sourced my figures from a number of Scottish Govt publications, see the graph below for example (this shows TOTAL renewables as you mentioned not just wind).

2017 07 Scottish electricity consumption and renewables.jpg

Averaged across all of 2016 the figure was around 40% from wind alone. In the month of December 2016 wind provided 53% of all electricity used in Scotland. Depending on whether you look at averaging the proportion of each month's % or just adding the entire year's production by entire years demand will yield a figure a few % different.

For the month of December, wind turbines in Scotland provided 1,154,864MWh of electricity to the National Grid, the equivalent of 53 per cent of the amount used in the country.
http://www.independent.co.uk/environment/scotland-wind-turbines-more-electricity-country-needs-four-days-renewable-energy-power-national-grid-a7517066.html

In the first 6 months of 2017 just wind alone (not solar and not hydro) provided 57% of Scottish demand.

Plus you also skipped over my salient point-subsidies for renewables are going to be cut.Your "low"prices don't take into account the subsidies.

That subsidies are to be cut I did not dispute - so I did not mention it. Did you know that the coal plants over that period (until finally shut in 2016) also received equally as large subsidies as do the nuclear and gas plants. In fact the subsidies to the gas plants shot up once coal stopped entirely?

Energy subsidies: renewables, fossil fuels or nuclear? - Business for Scotland

Analysis for the 2013 enquiry revealed;



  • An estimate of total annual fossil fuel consumer and producer support in the UK of just over £7 billion
  • The nuclear hangover from power stations operating in past decades is currently requiring over £2bn a year in producer support and the Nuclear Decommissioning Authority has to deal with liabilities estimated to be at least £50bn
  • Producer support of £3 billion targeted at renewable energy technologies

Seems the fossil fuel subsidies dwarf those of renewables BEFORE those of the renewables are to be reduced - not exactly a level playing field is it?

Also there is a little reported provision in the Finkel report that I am sure will cause something dear to your heart RAM.That is wind and solar generators be responsible for supplying dispatchable power. Already the Industry is grumbling-

Finkel: Storage burden falls on wind and solar farms, not system : RenewEconomy

Not sure what you mean "cause something dear to my heart" but making the playing field tilted is never a good 'enhancement'.

As every report into the most recent black-outs or near black-outs have stated - unexplained outages by gas plants and coal-fired plants either caused blackouts in 2017 or if not for wind and solar taking up the load - would have caused black-outs.

In NSW it was failing coal-fired generation that nearly put the lights out in February but I have not heard any calls for the NSW coal-fired power stations to provide dispatchable power in the event they again fail.

So if they are causing a problem why are they not required to provide storage?

Perhaps you have forgotten that the Engie-owned Pelican Point gas fired power station (one of the most modern and most efficient in Australia) decided not to produce any power when the lights went off in SA. They didn't suffer an outage or some problem that prevented them from providing power they just made a commercial decision (documented if you care to read the reports) that it was more profitable to stay shut down and let their Hazelwood & Loy Yang B operations produce at max output when the price spiked. Not illegal, absolutely within the rules.

So why should they not be required to provide storage to supply instant demand when needed? Especially since they are such a large proportion of SA generation capacity in a single plant located virtually in Adelaide?

And again later in the article the deliberate misrepresentation of costs suggesting wind is cheaper. Of course every Mwh produced by fossil fuel generators requires the forfeit of a REC whilst every Mwh produced by wind or solar is granted a REC.Those peaked at $93-a difference between fossil fuel and renewables of $186 per Mwh.No wonder since Finkel though the price of RECs is going down.

You seem to be forgetting about the subsidies provided to the fossil fuel producers which would also need to be added back to their costs. The IMF puts the total subsidies to fossil fuel power producers in Australia at over $30bn per annum.

But RAM you will be in your element with corrupt Energy companies and corrupt/stupid politicians all out to protect their patch.Oh so much you will be able to investigate.Heaven.

What is all this about corrupt Energy companies? Do you know something that they are doing that you think is illegal?

I have written many times that what they are doing is totally legal and in complete adherence to the Australian Energy Market rules and regulations. I have pointed out that the bonuses approved for senior execs at State owned companies are approved by the politicians - nothing corrupt in that or do you think that is corrupt?

Whether it is fair to the community or businesses is another matter entirely to corruption.

Also 'stupid politicians'? It is you who say that not I.
 
In Australia the subsidies provided to coal generators are only the things such as Exploration cost writeoffs and depreciation available to all miners.The amounts in the billions claimed by the Greens is for all coal production most of which is exported not used for local electricity production.
The extras such as depreciation are also used by wind and solar generators so under your rules should also be added to their costs.

PS you left out an important paragraph from the report you quote-
Hydro power contributed over a quarter of renewable electricity output, and while other technologies such as biomass and marine energy currently make a smaller contribution, they have massive potential for growth in the future.

Which takes wind + all other renewables down to 39% of production in 2016.
My figures also came from Scottish government publications.

As to the coal powered stations nearly causing the blackouts in NSW you are joking aren't you?You do realise there have been many closures of coal power stations in NSW.1750MW capacity lost in the last 2 years.AGL have already announced that another 7520MW capacity will close over the next 15 years.
 
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Demonising coal electricity generation, and then adding in renewables, then not building baseload, then artificially making coal more expensive then blaming it on coal for not generating enough electricity and saying renewables had to come to the rescue.

Yes generators are gaming the system, but peak/short term generators such as gas were built to supplement the nonbaseload nature of renewables and by their nature allows for such "gaming". They were supposed to come in when demand>supply, but they didnt or until prices peaked. The whole industry moved to such technology because of Climate change/green ideology, because renewables could not guarantee stable supply, and in doing so moved to a model where generators can come in and go out of the market at will. Then when the system worked legally they blamed lack of coal power from another state via a feed-in cable which maxed out and cut out.

Take out baseload, add in variable generation, build peak demand generators (which become a monopoly,) add in politicians = current situation.

x MW of basload cannot be replaced by x MW of renewables. Every x MW of renewable has to be backed up by at least another/several x MW from another source.

Problem is not enough coal baseload/ nuclear baseload. Such generation cannot come in/go out at wlll. They cannot game the system. Peak and variable generation can and are gaming the system.
 
At our work warehouse offices we have been working to get our power usage down to well under 20% of the amount we used 5 years ago. Batteries are not ready but may be suitable within the next few years.
So far it has been solar and LED lighting and we are happy with our progress nationally. Paybacks have been under 3 years so it has been worth the effort.
 
In Australia the subsidies provided to coal generators are only the things such as Exploration cost writeoffs and depreciation available to all miners.The amounts in the billions claimed by the Greens is for all coal production most of which is exported not used for local electricity production.
The extras such as depreciation are also used by wind and solar generators so under your rules should also be added to their costs.

I did not know the International Monetary Fund was part of the Greens Party?

BTW what you have said about the constituents is wrong - google the IMF report and it sets everything out in true bureaucratic fashion. They have compared like with like across dozens of countries and Australia is in the top 3 for absolute value of subsidies to fossil fuel energy production.

IPS you left out an important paragraph from the report you quote-

I left out many interesting paragraphs - I did not want to win the 'longest post award!

IWhich takes wind + all other renewables down to 39% of production in 2016.
My figures also came from Scottish government publications.

but previously you were talking about 36% INCLUDING hydro? Now its 39% excluding it - that is some difference. On a % provided each month by wind it was 40% across the twelve months (which I spelt out the difference in my previous post btw). What about the 57% from wind for the period from first six months of 2017? Or coal-fired production for the entire UK only provided 2% over the same period.

Lets stop quibbling about a pebble on the dam wall!

IAs to the coal powered stations nearly causing the blackouts in NSW you are joking aren't you?You do realise there have been many closures of coal power stations in NSW.1750MW capacity lost in the last 2 years.AGL have already announced that another 7520MW capacity will close over the next 15 years.

No I am not joking, merely reporting exactly what happened.

"It found gas generation failed at EnergyAustralia’s Tallawarra power plant on the NSW south coast owing to faults with the turbines. The Colongra gas-fired plant, owned by Snowy Hydro, was unable to start because of low gas pressure in its supply lines.

Output was also reduced from two of AGL’s 500MW coal-fired power units at the Liddell power station.


The combined failures left about 2,000MW unavailable during the peak period of demand. A number of thermal generators also reduced their output, while solar and wind generation reduced by 300MW in line with forecasts for that time of the day.


“These factors, all coinciding at approximately 1700 hours, combined to overload the New South Wales interconnections with Queensland and Victoria, creating an insecure operating state,” Aemo’s report said."



How about the AFR's report on it to help your memory, or the AEMO report which I have previously provided the link for,

[h=3]Gas and coal failures were behind NSW's power scare: AEMO | afr.com[/h]404 | afr.com...


Feb 22, 2017 - More than 2000 megawatts of thermal generation failed during NSW's power scare earlier this month.

[h=3]Victorian cities faced power cuts to ensure NSW made it through big ...[/h]Australian Breaking News Headlines & World News Online | SMH.com.au › Business › News › Energy
Feb 22, 2017 - As NSW suffered through its record-breaking heatwave this month, with ... to the Victorian government on the afternoon of Friday February 10 to warn that .... earlier this month despite having available gas-fired generation capacity. ... during the event, with about 2000 MW of gas and coal-fired power stations

[h=3]Coal and gas to blame for NSW blackout - MacroBusiness[/h]https://www.macrobusiness.com.au/2017/02/coal-gas-blame-nsw-blackout/


Feb 22, 2017 - at 12:39 pm on February 22, 2017 | 18 comments. Oh dear: More than 2000 megawatts of thermal generation failed during NSW's power ... pressure on the NSW power network will embarrass coal and gas advocates who say ...

or what happened in Qld - the place with virtually no wind and no utility solar....

[h=3]Coal plants failed in Queensland heatwave on day of record demand ...[/h]reneweconomy.com.au/coal-plants-failed-in-queensland-heatwave-on-day-of-record-...


May 18, 2017 - Are Australia's coal and gas generators able to power Australia through ... on February 10 in NSW, the loss of 1,000MW of coal capacity and the ...
______________________________________________________________
BTW - even though one or two generators may game the system to push the price up towards the max of $14,000 - EVERY generator receives that price if their lower offers are accepted.

All their snouts are equally covered! Wind or hydro or gas or coal.
 
1750 MW of coal generation has been closed just in NSW in the last 2 years..If that had been available would there have been blackouts?
Replacing the generation capacity of coal power stations with intermittent solar and wind power is the root cause of more severe blackouts we now experience.
 
Quickstatus all of our manufacturing is subcontracted so I will check with our main moulders in SA and WA. I know they have used energy auditors.
 
Bring back immense coal baseload, I think most of the current issues will then go away.

The reason the coal-fired power stations were shut down is that they were losing money and had capacity utilisation rates below 30% in some cases. To make a slight profit they need to operate north of 80% capacity 24 hours a day.

Due to all the hype that power demand was rising year-on-year and would do so for ever EVEN after the Aluminum smelters foreshadowed that they can not compete with the brand new (2010 that is) Chinese smelters and would be shutting down just like BHP's smelters were wound back and either closed or hived off to go bankrupt for the same reason.

It was calculated that there was an excess of 9 GW of fossil-fuel fired power stations in 2011. That is why there have been shutdowns. That is why Hazelwood was closed.

In late 2015 following a power conference something strange happened (which I've written about before) all of a sudden with alarming regularity power price offers from major (duopoly like) generators began to have a profile like this for successive 5 minute offers .

1st 5 minutes: -$1,000
2nd 5 minutes: -$1,000
3rd 5 minutes: $14,000
4th 5 minutes: $875

So they would offer to PAY $1,000 per MW for the privilege of giving anywhere up to 400 MWs to the grid for 5 minutes. So 5 minutes is one twelfth an hour = -1,000 x 400 / 12
After they got other generators to lower the amount they were offering then they would changes their offer to the maximum.

Certain foreign owners of generators may have thought that this 'gaming' would sooner or later get someone in trouble so they looked through this and saw the best option was to close down.

I was told yesterday of a great (revealing) live page showing every generator Australia-wide ex WA and exactly how much as % of capacity as well as MW they are producing.

Warning - addictive page

Australian Energy Market | Aneroid
2017 07 27 19 40 Aust Power Production.jpg
2017 07 27 19 40 Qld Power Production.jpg
2017 07 27 19 40 Tas Power Production.jpg
2017 07 27 19 40 S Aust Power Production.jpg
 
The gold plating and rorting of the system because of privatisation

But it appears the truth behind astronomical power bills is that it is a blatant cash grab aimed at lining the pockets of private companies, who spend the money on pay rises, extra managers and a growing army of sales people.
.

“Our research shows that the cost of gas makes up just 3 per cent of your final bill and coal just 5 per cent,” he said.
“It in no way explains why bills have gone up by 183 per cent on average over the last two decades.”
The other 92 per cent is going towards soaring annual profits well in excess of $100 million, which are rewarding electricity chiefs with bumper pay packets.

Australian Bureau of Statistics figures show electricity companies have increased the number of managers over the past 20 years from about 2500 to 8500 people. At the same time the sales force has jumped from 607 people to 3008.
AGL’s boss Andy Vesey, who was recruited from America, pocketed $6.9 million last year while Energy Australia’s chief executive Catherine Tanna was rewarded with a $5.1 million salary and bonus.


No Cookies | Daily Telegraph



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Electricity-Price-Rise-Table-copy-590x357.jpg
 
The sad fact that I see is that coal fired power stations were hamstrung hence closed-not because they were more expensive to operate but because they were not allowed to operate efficiently.Some also closed because of the increasing penalties they faced for producing even the electricity they could produce.
And as for privatisation of the poles and wires being the cause of the increase in electricity prices well just look at Germany.They are spending billions of euros upgrading their distribution systems to cope with the increasing variability of renewable production.
https://www.greentechmedia.com/arti...olar-billion-euro-grid-projects-seek-to-bring

State governments may have dodged a bullet as the new owners now have to future proof our distribution system.It ain't going to be cheap.
 
The gold plating and rorting of the system because of privatisation

.






No Cookies | Daily Telegraph



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View attachment 102817

The one year figure is good for Qld, have a look at the 5 yr figure...

Qld had the highest average wholesale electricity price for most of the last financial year - higher than SA. Qld had zero wind and a number of Fossil fuel stations that were never switched on once.

BTW - The Qld State Govt stepped in and agreed to subsidise the private sector electricity retailers (No the retailers AGL, Energy Australia (Chinese owned btw) and Origin are not State owned) at the taxpayers' expense. So whilst the Qld power consumers are getting only half the rise they were due to pay - the other half is being paid by the State Govt by not charging the Solar Feed-in-tarriffs as previously done. The retailers are making the same amount now as if they had doubled the increase as the cost from the Qld generators (State Owned) has been reduced by that amount.

Smoke & Mirrors.

Could well be a bit like the 1 yr figure for the UK looking bad while the previous 4 years saw prices falling for both electricity and gas.

Fun Fact:


Total Fossil Fuel Power Generation capacity registered with the AEMO is 39 GW.
Total Hydro Power Generation Capacity registered is 8GW

Typical daily peak demand over the Autumn/Winter to date = 28 to 30 GW

Typical daily avg generation by wind per 5 minute interval a little over 2GW.

So at the PEAKS there was more than 17 to 19GW of Fossil Fuel and Hydro Generation capacity unused as wind and other renewable source were also supplying power.

That's why if you look at the map from Australian Energy Market | Aneroid you will find many Fossil Fuel Generators especially in Qld producing zero MW.

There is no shortage of capacity just profitability and gaming by those with market power (as ACCC has stated repeatedly and as it did when it opposed the recent generator takeovers concentrating that power even further).

On that fateful day when numerous coal and gas fired generators failed just when the record demand for the year was happening - there were coal and gas generators laying idle.

2017 02 10 power 16 00.jpg

Hazelwood (1.6GW) was operating at full capacity on that day so despite having a total registered fossil fuel capacity of around 40GW able to produce (the requirement to "Register" with the AEMO) - the near max amount they provided (due to failures, or decisions not to operate at all) was nearly 30GW - leaving 10GW unaccounted for.

Qld's fossil fuel registered capacity (and shown by the Qld Govt) is 12,800 MW consisting of 32 different plants. Max generation on the day was around 9,300MW

Now look at Qld's Hydro - its registered capacity is 650MW and produced a peak of nearly 320MW despite having plenty of water available at Wivenhoe.

NSW

NSW registered fossil fuel generation capacity is 14,200 MW, on Feb 2 the production near the peak demand time was around 8,400 MW - 5,800 MW was missing in action.

Want to see the current prices (and for the entire day) for any State? Have a look at this then:

Data dashboard – Australian Energy Market Operator
 
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