http://www.adelaidenow.com.au/news/south...6d3541d3863da4f
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Where does South Australia’s power come from?
During the 2015 financial year, gas accounted for 37 per cent of the electricity, wind 34 per cent, coal 23 per cent, and solar 7 per cent. Additionally, SA imported around 10 per cent of its total from Victoria via the interconnector to meet demand when there was not enough capacity locally.
With the closure of Alinta’s Northern power station at Port Augusta occurring on May 9 this year, coal is now out of the equation. At 1pm yesterday, SA was generating 1730 MW of electricity — of that 71 per cent wind, 24 per cent gas, and 5 per cent solar.
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Is the State Government’s renewable energy policy and is it to blame?
Analysts have blamed the Government’s hurried pursuit of renewable energy for forcing the closure of baseload fossil fuel plants like that at Port Augusta. They say the focus on wind, an unreliable power source, as opposed planning for a more diverse range of renewables that include the more reliable geothermal has contributed to price volatility since coal-fired baseload power was switched off on May 9.
Australian Industry Group chief Innes Willox said SA’s current energy crisis has many causes, but the closure at Port Augusta has helped set the scene.
“The loss of that generation capacity raises the likelihood that shortfalls in the interconnector or renewable generation send prices soaring,” he said.
“But most of all, the closure happened so fast that the market had little time to prepare or adjust. It’s a clear marker of the danger of disorderly transitions.”
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Should SA have more solar generation?
SA’s solar generation relies on household rooftop panels. The state had a huge uptake — nearly one-third of SA homes have them installed — was came about off the back initial generous feed-in tariffs. However on September 30 that comes to an end.
Large-scale solar farms are popular throughout much of the rest of the world but issues with storage meant they can also be unreliable.
There have been two solar thermal plants proposed for Port Augusta, which have storage capability and now a two-stage 120MW solar and battery project proposed for Roxby Downs.
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Are prices expected to continue to rise?
Completion of the interconnector upgrade should help smooth out recent volatility. However, SA is facing wholesale electricity prices that are roughly double that of other states for more than two years, according to figures from the Australian Energy Regulator.
Wholesale energy costs are the prices charged by power stations. They add up to about half the standard business or households bill, which also includes costs for building poles and wires.
SA currently pays $70 per megawatt hour for its wholesale power, and the AER forecasts that charge will rise to peak of $94 by mid 2018, when the price in Victoria will be just $41.
What it means for households, businesses and jobs?
Business SA senior policy adviser Andrew McKenna said industry thrives on certainty and the recent high and volatile wholesale electricity prices have undermined confidence in energy intensive sectors like manufacturing and irrigated agriculture.
“While existing businesses will try and hang on in SA, it will become increasingly difficult to attract new investment and jobs in energy intensive industry should our wholesale electricity prices remain effectively double those of adjoining states,” he said.
Quote:
Where does South Australia’s power come from?
During the 2015 financial year, gas accounted for 37 per cent of the electricity, wind 34 per cent, coal 23 per cent, and solar 7 per cent. Additionally, SA imported around 10 per cent of its total from Victoria via the interconnector to meet demand when there was not enough capacity locally.
With the closure of Alinta’s Northern power station at Port Augusta occurring on May 9 this year, coal is now out of the equation. At 1pm yesterday, SA was generating 1730 MW of electricity — of that 71 per cent wind, 24 per cent gas, and 5 per cent solar.
Quote:
Is the State Government’s renewable energy policy and is it to blame?
Analysts have blamed the Government’s hurried pursuit of renewable energy for forcing the closure of baseload fossil fuel plants like that at Port Augusta. They say the focus on wind, an unreliable power source, as opposed planning for a more diverse range of renewables that include the more reliable geothermal has contributed to price volatility since coal-fired baseload power was switched off on May 9.
Australian Industry Group chief Innes Willox said SA’s current energy crisis has many causes, but the closure at Port Augusta has helped set the scene.
“The loss of that generation capacity raises the likelihood that shortfalls in the interconnector or renewable generation send prices soaring,” he said.
“But most of all, the closure happened so fast that the market had little time to prepare or adjust. It’s a clear marker of the danger of disorderly transitions.”
Quote:
Should SA have more solar generation?
SA’s solar generation relies on household rooftop panels. The state had a huge uptake — nearly one-third of SA homes have them installed — was came about off the back initial generous feed-in tariffs. However on September 30 that comes to an end.
Large-scale solar farms are popular throughout much of the rest of the world but issues with storage meant they can also be unreliable.
There have been two solar thermal plants proposed for Port Augusta, which have storage capability and now a two-stage 120MW solar and battery project proposed for Roxby Downs.
Quote:
Are prices expected to continue to rise?
Completion of the interconnector upgrade should help smooth out recent volatility. However, SA is facing wholesale electricity prices that are roughly double that of other states for more than two years, according to figures from the Australian Energy Regulator.
Wholesale energy costs are the prices charged by power stations. They add up to about half the standard business or households bill, which also includes costs for building poles and wires.
SA currently pays $70 per megawatt hour for its wholesale power, and the AER forecasts that charge will rise to peak of $94 by mid 2018, when the price in Victoria will be just $41.
What it means for households, businesses and jobs?
Business SA senior policy adviser Andrew McKenna said industry thrives on certainty and the recent high and volatile wholesale electricity prices have undermined confidence in energy intensive sectors like manufacturing and irrigated agriculture.
“While existing businesses will try and hang on in SA, it will become increasingly difficult to attract new investment and jobs in energy intensive industry should our wholesale electricity prices remain effectively double those of adjoining states,” he said.
