Paying twice, and more – why renewables are a luxury good

Proponents argue technology will bring costs down. It will bring direct costs down, and for coal and gas as well. But it will only cure part of the problem and be incremental (unlike computing power).

Unless someone finds a way to repeal the second law of thermodynamics we’ve probably seen most of the big improvements in solar, and definitely wind, generation.

In 2010, Kevin Rudd commissioned the Garnaut Climate Change Review. Garnaut predicted that by now electricity prices would have at least doubled if we decarbonised the economy. He was honest.

Time for his successors in politics to be honest too. Renewables are expensive.

Figure 1: Chart 6.27: Average Australian wholesale electricity prices “Garnaut Climate Chiange Review”