Aussie ABC Admits the Renewable Transition is Driving Up Household Electricity Bills

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Essay by Eric Worrall

“… the up-front costs involved in transitioning the network to renewables will be large …”

Why could power bills rise by 35 per cent next year? It’s part of a bigger problem

By business reporter Gareth Hutchens

Earlier this week, the boss of Alinta Energy said retail electricity prices could jump by more than 35 per cent next year.

Why? Because, as experts have explained, Australians living in eastern and south-eastern Australia have to rebuild their electricity system within a decade or so, given the pace with which old, coal-fired power stations are abruptly exiting the system.

They say renewable energy will provide cheaper electricity bills in the long-run, but the up-front costs involved in transitioning the network to renewables will be large, and since things have been left so late, the disorderly nature of the transition will likely make it more expensive than it would have been if the transition had been planned.

An example of the disorderly transition

Want an idea of how quickly things are moving?

Last month, AGL shocked the market when it announced plans to close its Loy Yang A coal-fired power station in Victoria by 2035, 10 years earlier than expected.

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The Australian Broadcasting Corporation is a wholly government owned national broadcaster.

The ABC blames a lack of planning and the “disorderly” early closing of coal plants for the allegedly temporary spike in energy costs. So its still coal’s fault, even though they are helping the green transition by withdrawing from the market.

Of course this begs an obvious question – if the closure of a coal plant is causing such disorder, why can’t the government simply build a new coal plant, to ease the pain of the green transition?

Surely a temporary coal plant costing a few billion dollars would be better than slamming ordinary householders with the extreme costs of a “disorderly transition”.

via Watts Up With That?

October 14, 2022