Demonising fossil fuels has caused major grid problem in Australia

[markslawson + 1,057]

An Australian government regulator has taken over management of the grid for the Eastern half of the country (Western Australia is different) after an attempt to impose a price cap turned a bad situation worse. The main reason for the price cap is that coal and gas prices have gone through the roof, and a number of aging conventional (ie, coal) generators have fallen out of the market due to either planned maintenance, or some fault - as a result prices were surging far above  $A1000 (about $US750) per megawatt hour. Prices can easily vary between - $1,000, when there is a lot of wind energy through to $15,000 plus but prices were so high so often that the cost of supply power to consumers (the sore point) was being affected. Hence the attempt to impose a price cap which promptly resulted in conventional generators staying out of the market more often as prices were below cost of supply.  

The main problem in all of this is not so much renewables, although they are not helping, but because coal has become a swear word. No one is building coal or gas plants to replace existing coal plants which are aging or going out of service. This is in part because investors would have severe concerns about the attitude of future governments to assets which can remain in operation for 50 years, but also because renewables are messing the market up so much. There is no capacity market in Australia, so there is no mechanism for paying generators to keep operating, even when the wind decides to blow and wind generators cause the spot market to collapse through over supply. About the only viable solution is to build more more gas plants (coal would be better but activists won't have it) and maybe chuck in a few batteries although they are not  much use, and wear the cost. But in the teeth of evidence that existing wind power is too variable to be counted on, no matter how large an area the generators are scattered across, activists keep insisting that the solution is more renewables.        

[Eyes Wide Open + 3,552]

I find this phenomenon of objective reporting and govt energy departments not openly discussing the issues with green energy very disturbing.There are pro's and con's to all infrastructure issues. To  openly disregard and misinform a population base only ends badly. "Right around the corner" will lose its charm shortly, and a sobering anger will remain for decades.

Edited June 16, 2022 by Eyes Wide Open

[Ron Wagner + 702]

1 hour ago, markslawson said:

An Australian government regulator has taken over management of the grid for the Eastern half of the country (Western Australia is different) after an attempt to impose a price cap turned a bad situation worse. The main reason for the price cap is that coal and gas prices have gone through the roof, and a number of aging conventional (ie, coal) generators have fallen out of the market due to either planned maintenance, or some fault - as a result prices were surging far above  $A1000 (about $US750) per megawatt hour. Prices can easily vary between - $1,000, when there is a lot of wind energy through to $15,000 plus but prices were so high so often that the cost of supply power to consumers (the sore point) was being affected. Hence the attempt to impose a price cap which promptly resulted in conventional generators staying out of the market more often as prices were below cost of supply.  

The main problem in all of this is not so much renewables, although they are not helping, but because coal has become a swear word. No one is building coal or gas plants to replace existing coal plants which are aging or going out of service. This is in part because investors would have severe concerns about the attitude of future governments to assets which can remain in operation for 50 years, but also because renewables are messing the market up so much. There is no capacity market in Australia, so there is no mechanism for paying generators to keep operating, even when the wind decides to blow and wind generators cause the spot market to collapse through over supply. About the only viable solution is to build more more gas plants (coal would be better but activists won't have it) and maybe chuck in a few batteries although they are not  much use, and wear the cost. But in the teeth of evidence that existing wind power is too variable to be counted on, no matter how large an area the generators are scattered across, activists keep insisting that the solution is more renewables.        

They will be learning the hard way, just as all of the nations in the West are. Any nation that does not produce its own energy will suffer until someone revives production of oil and natural gas, and even coal, where needed. 

[Ron Wagner + 702]

1 hour ago, Eyes Wide Open said:

I find this phenomenon of objective reporting and govt energy departments not openly discussing the issues with green energy very disturbing.There are pro's and con's to all infrastructure issues. To not openly disregard and misinform a population base only ends badly. "Right around the corner" will lose its charm shortly, and a sobering anger will remain for decades.

The government depends on mainstream liberal lying media to help it get away with its evil plans. It is obvious to the average American that it time to elect Republicans. Those who accept our present leaders will be overwhelmed in the next two elections. 

[TailingsPond + 768]

17 minutes ago, Ron Wagner said:

The government depends on mainstream liberal lying media to help it get away with its evil plans. It is obvious to the average American that it time to elect Republicans. Those who accept our present leaders will be overwhelmed in the next two elections. 

Keep the faith!

You are probably ignoring all the recent news... 

[Eyes Wide Open + 3,552]

42 minutes ago, TailingsPond said:

Keep the faith!

You are probably ignoring all the recent news... 

No entiendo

 

[Boat + 1,323]

3 hours ago, markslawson said:

An Australian government regulator has taken over management of the grid for the Eastern half of the country (Western Australia is different) after an attempt to impose a price cap turned a bad situation worse. The main reason for the price cap is that coal and gas prices have gone through the roof, and a number of aging conventional (ie, coal) generators have fallen out of the market due to either planned maintenance, or some fault - as a result prices were surging far above  $A1000 (about $US750) per megawatt hour. Prices can easily vary between - $1,000, when there is a lot of wind energy through to $15,000 plus but prices were so high so often that the cost of supply power to consumers (the sore point) was being affected. Hence the attempt to impose a price cap which promptly resulted in conventional generators staying out of the market more often as prices were below cost of supply.  

The main problem in all of this is not so much renewables, although they are not helping, but because coal has become a swear word. No one is building coal or gas plants to replace existing coal plants which are aging or going out of service. This is in part because investors would have severe concerns about the attitude of future governments to assets which can remain in operation for 50 years, but also because renewables are messing the market up so much. There is no capacity market in Australia, so there is no mechanism for paying generators to keep operating, even when the wind decides to blow and wind generators cause the spot market to collapse through over supply. About the only viable solution is to build more more gas plants (coal would be better but activists won't have it) and maybe chuck in a few batteries although they are not  much use, and wear the cost. But in the teeth of evidence that existing wind power is too variable to be counted on, no matter how large an area the generators are scattered across, activists keep insisting that the solution is more renewables.        

Your selling Australian nat gas to Asia, right? They are making record profits on the backs of Australian citizens. In fact Capitalism under the oligarchs and corrupt government officials allow entire economies of countries to become severely harmed rather than set fair prices for commodities during times of great disruption. The US is no different. We export pipelines and ships yet claim our storage is low and charge over $8 when normal is closer to $2.50. Humans are idiots. Guys like Putin call the shots. In the end greed kills demand, disruption kills demand. Capitalism feeds on itself if allowed. There is no reason for any exporter of any product to overcharge the host citizens. Otherwise you invite distortion. 

[markslawson + 1,057]

18 hours ago, Boat said:

Your selling Australian nat gas to Asia, right? They are making record profits on the backs of Australian citizens. In fact Capitalism under the oligarchs and corrupt government officials allow entire economies of countries to become severely harmed rather than set fair prices for commodities during times of great disruption.

Boat - I know there are a lot of people who would agree with you. I'm not one, however. Those "greedy capitalists" as you see them built the LNG production trains in the first place, and would have built coal and gas plants to replace the now aging plants, if they had not been scared off by activists. As for the prices, they are charging market prices which means they are fair. The trouble is the same greedy capitalists you despise have not been permitted to expand the gas supply to meet demand through exploration and development of resources, again through largely imaginary "risks" cited by activists. One Australian state does not even permit onshore exploration for gas. Time to stop moaning about the market and fossil fuels and let the capitalists get to work generating supply.  

[Tom Nolan + 2,443]

Short Video in article

https://www.zerohedge.com/commodities/australias-energy-crisis-worsens-govt-ask-people-keep-lights-avert-blackouts

Australia's Energy Crisis Worsens As Gov't Ask People To Keep Lights Off To Avert Blackouts

by Tyler Durden

Thursday, Jun 16, 2022 - 10:20 PM

Australia's energy minister asked Sydney and the New South Wales (eastern part of the country) residents to turn off lights and energy-intensive appliances in the evening to prevent power blackouts due to an ongoing energy crunch, The Independent reports. 

The federal energy minister, Chris Bowen, asked residents in a televised address to turn off energy-intensive devices between "6 to 8 [pm]" to mitigate risks of a spike in power during peak hours. He pointed to several offline coal-fired plants because of maintenance and unexpected issues. 

Reuters notes that 65% of eastern Australia's power is generated by coal, but more than a quarter of that capacity is offline. 

Wholesale electricity prices have soared and on Monday exceeded the capped price of A$300 per megawatt-hour. Above A$300, coal power generation plants lost money and forced some operators to shutter power generation units, thus removing energy capacity off the grid and sending prices even higher. The rise of power prices began when coal prices jumped following the Russian invasion of Ukraine. 

Bowen snapped at a journalist when asked if more coal power is the answer the energy crunch. 

"The situation in recent days has posed challenges to the entire energy industry, and suspending the market would simplify operations during the significant outages across the energy supply chain," Australian Energy Market Operator (AEMO) chief executive Daniel Westerman said in a statement.

"It was understandable generators had held back supply in light of the price caps along with unplanned outages and supply challenges with coal and gas, but having to direct generators to provide supply had made it impossible to maintain normal market operations," Westerman said. 

Australia's dysfunctional power grid hasn't stopped at coal. In the last three weeks, declining solar output and periods of low wind have created power generation challenges, which have placed a heavier burden on fossil fuel generators.

Also, the coldest start to a winter season in decades is boosting heating demand and worsening the problem. 

Australia better find a way to bring more coal power plants online or risk widespread blackouts amid high demand because of the winter chill. 

[Tom Nolan + 2,443]

 

[Tom Nolan + 2,443]

https://www.zerohedge.com/energy/impossible-continue-operating-australias-national-energy-market-suspended

'Impossible To Continue Operating': Australia’s National Energy Market Suspended

by Tyler Durden

Wednesday, Jun 15, 2022 - 09:20 PM

Authored by Rebecca Zhu via The Epoch Times (emphasis ours),

The Australian Energy Market Operator (AEMO) has suspended the entire national energy market from June 15 at 2:05 p.m. after it was deemed “impossible” to continue operating the spot market while ensuring a reliable energy supply.

AEMO Chief Executive Daniel Westerman prefaced the announcement by revealing the market operator had been forced to direct 5,000 megawatts of generation through direction interventions yesterday, roughly 20 percent of total demand.

“In the current situation suspending the market is the best way to ensure a reliable supply of electricity for Australian homes and businesses,” he said in a media release.

“The situation in recent days has posed challenges to the entire energy industry, and suspending the market would simplify operations during the significant outages across the energy supply chain.”

Westerman emphasised that the suspension would be temporary and be reviewed daily for each market region. Once the AEMO is able to resume market operation under normal rules, it will do so “as soon as practical.”

The suspension means the AEMO will take sole charge of dispatching energy to the energy grid and will not need to rely on last-minute interventions.

The operator will apply a pre-determined pricing schedule for each energy market region and generators may submit an application to AEMO if their costs exceed the suspended market.

“That visibility will help us to manage the system in real-time as well as to understand the balance of supply and demand,” Westerman told reporters. “Despite this, conditions remain tight in the coming days, in particular in New South Wales (NSW), where we would urge consumers to conserve energy where it is safe to do so.”

It is the first time the entire national energy market has been suspended since its formation in 1998. However, it has suspended the energy markets in Tasmania and South Australia in 2021, making it “a process that’s familiar to [the AEMO].”

The national energy market has faced significant challenges from a confluence of factors that led to this decision, including the closure of coal-fired plants, rising international coal and gas prices, and rising demand for heating during the winter season.

The NSW and Queensland energy ministers have backed both AEMO’s decision, with both saying it would ensure adequate supply across the Eastern states.

“This decision further reduces the risk of supply shortfalls and unplanned outages,” Queensland Energy Minister Mick de Brenni said. “I can assure Queenslanders there is surplus supply to meet demands in our state and a further generating unit is scheduled to return to service later this week.”

The Australian Industry Group said worried energy users need confidence in face of the market suspension.

“The unprecedented suspension of the national electricity market spot market is a clear signal that the energy crisis in Eastern Australia is intensifying,” CEO Innes Willox said in a statement.

“The detail of the AEMO market suspension will be completely arcane to most business and household energy users. They need confidence that the physical electricity system they depend on will not collapse.”

[Boat + 1,323]

23 hours ago, markslawson said:

Boat - I know there are a lot of people who would agree with you. I'm not one, however. Those "greedy capitalists" as you see them built the LNG production trains in the first place, and would have built coal and gas plants to replace the now aging plants, if they had not been scared off by activists. As for the prices, they are charging market prices which means they are fair. The trouble is the same greedy capitalists you despise have not been permitted to expand the gas supply to meet demand through exploration and development of resources, again through largely imaginary "risks" cited by activists. One Australian state does not even permit onshore exploration for gas. Time to stop moaning about the market and fossil fuels and let the capitalists get to work generating supply.  

In my view that’s just corruption talking. Air, land, water and resources in general are owned by the public and should be harvested by laws that take the greater good of all in mind. These laws and permission to own and harvest need future generations needs taken into consideration. For example the large aquifer under Nebraska and Kansas should not be drained to make a buck selling grain to Asia. No need to threaten that water with oil from Canada to refine in Texas to sell to Brazil. The US will need that water unless tech comes up with a cheaper answer. I or we are not trying to be an ideologue but trying to be practical as if we owned the problems and solutions. Like trade is great but why help an enemy. You sound like a international corporation who cares little for the home team. PS all countries should protect their own as best they can. 

[Tom Nolan + 2,443]

13 hours ago, Boat said:

Air, land, water and resources in general are owned by the public and should be harvested by laws that take the greater good of all in mind.

Boat,  And who do you trust to rule over men and these resources?  The corrupt government agencies?  ...And if you do not recognize that the government agencies are captured and corrupt, then you are blinded by your own unwillingness to research.  You, yourself, are captured by Mass Formation.

Edited June 18, 2022 by Tom Nolan

[markslawson + 1,057]

On 6/18/2022 at 10:36 AM, Boat said:

For example the large aquifer under Nebraska and Kansas should not be drained to make a buck selling grain to Asia. No need to threaten that water with oil from Canada to refine in Texas to sell to Brazil. The US will need that water unless tech comes up with a cheaper answer.

Boat - I'd ask how the issue of aquifers got into a discussion on energy but I'd just get another rant, mostly unconnected with the topic. As for your comments about air, land and water.. the entire point being made is that air resources (ie wind) is being used but we'd be better off if they weren't. However, I suspect I'd be wasting my time. Leave it with you. 

[Eyes Wide Open + 3,552]

On 6/17/2022 at 5:36 PM, Boat said:

In my view that’s just corruption talking. Air, land, water and resources in general are owned by the public and should be harvested by laws that take the greater good of all in mind. These laws and permission to own and harvest need future generations needs taken into consideration. For example the large aquifer under Nebraska and Kansas should not be drained to make a buck selling grain to Asia. No need to threaten that water with oil from Canada to refine in Texas to sell to Brazil. The US will need that water unless tech comes up with a cheaper answer. I or we are not trying to be an ideologue but trying to be practical as if we owned the problems and solutions. Like trade is great but why help an enemy. You sound like a international corporation who cares little for the home team. PS all countries should protect their own as best they can. 

Your never going to ascend to either a  mayor nor a sheriff with that attitude. Carry on! 

[Boat + 1,323]

On 6/18/2022 at 9:27 AM, Tom Nolan said:

Boat,  And who do you trust to rule over men and these resources?  The corrupt government agencies?  ...And if you do not recognize that the government agencies are captured and corrupt, then you are blinded by your own unwillingness to research.  You, yourself, are captured by Mass Formation.

Why Mr. Nolan your exactly right. We are surrounded by mass misinformation. The information I find usually conflicts with yours. Kinda why I respond to your nonsense. My idea of a just, clean, fair world takes a much different path than the rednecks who are after power and a buck. My world isn’t racist, likes women rights and self determination. Like 17 women with one man in Utah doesn't work and should be jailed with the Coup boys. Lol  I trust no one. Not one. transparency and access for most everything. All the groups that hate each other need access to each other’s hidden stuff. Watch the police, government and the judges the closest. They are human also. People love control and an advantage. Putin types think they own it. Guys like me don’t like any of it messing with me. I’m just pie in the sky nonsense to counter the greedy. 

 

[Tom Nolan + 2,443]

3 hours ago, Boat said:

We are surrounded by mass misinformation

The correct word is MASS FORMATION ...as discussed by Mattias Desmet and countless others.  And you just demonstrated Mass Formation.