Claims that renewables are the cheapest form of electricity
This "old hairy" gets trotted outad infinitumby climate activists and "progressive" politicians. Given that electricity prices have risen greatly with the switch to "renewables" and that countries where the market penetration of "renewables" has been greatest, have the highest electricity tariffs, the thesis seems totally at odds with reality.
Below is a truncated example of arguments put forward by columnist Crispen Hull in a recent piece. Hull is also a former editor of the Canberra Times newspaper.
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In his article "The quickest way to beat the Coalition's lies is to slash your power bill", Hull states that "the facts are in. Climate aside, renewables are the cheapest form of electricity generation".
"The truth is that new Coalition policy has nothing to do with lowering electricity prices. It is based upon allowing the fossil industry to profit from burning coal and gas for as long as possible, and on attracting direct donations from the fossil industry and the likes of Gina Rinehart…..
Renewables are not causing higher bills. Renewables are causing lower wholesale prices which are not being passed on by greedy electricity retailers and privatised, profit-driven grid owners. The quicker the government can convince households with solar to add batteries, the better. The battery subsidy scheme ticks the boxes. Free power generated in the middle of the day is sent to the battery to be used at night.
The battery subsidy should apply to people without solar panels so they can charge a battery when power is free and use it instead of expensive peak-hour grid rates……. At present, solar produces too much electricity in the middle of the day. The government's free three-hour midday power window is a smart way to change habits. People love a freebie. The policy will encourage them to change their habits so washing machines, dishwashers, swimming pool pumps, hot water and the like are set for the time when power is free. Their bills will go down. And so will everyone else's as the grid load is made more even.
How is this to be paid for? In the face of an onslaught of anti-Labor fossil industry lies and disinformation, Labor should cut its losses. Why appease a dog which is going to bite you anyway? The government should redirect the $15 billion-a-year fossil subsidies to boost the subsidies for household and industry batteries".
The article is based on fuzzy logic and ignores key issues.
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Without subsidies, batteries to back up solar have been uneconomic and were not commonly employed. (To cite an example, governments could make Grange Shiraz cheaper than "Riverina plonk" by simply employing a big enough subsidy!) Hull also ignores the need for alternative energy sources when wind and solar don't work, and that the energy system would collapse if coal-fired generation ceased overnight.
The only sense in which "renewables" are cheap is that they have near zero variable costs when conditions are favourable. The fixed costs (installation, depreciation and transmission costs) are, however, sky high. The "renewables" industry, in almost its entirety, runs on (huge and largely hidden) subsidies, and requires expensive backup. Solar can't ever work at night. Wind is variable and widespread wind droughts are not uncommon.
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