March 04, 2018 | Graham

So how cheap is renewable energy?



This table from Peter Rees is an interesting analysis of proposed power plants for South Australia. At a time when zealots are claiming that so-called renewables (wind and solar) are cheaper than alternatives, the reality of building costs says otherwise. The notes and commentary are Peter’s as well.

Rees_18_03_04

The three renewable projects will produce a total average output of 208MW at a cost of $2050 million. (Intermittent with a few hours storage). Last June, AGL announced plans to build a 210MW gas plant at a cost of $  295  million. (Despatchable) http://www.abc.net.au/news/2017-06-07/agl-announces-new-sa-power-station/8596016

  1. The gas plant will probably employ less than 20% of the personnel required for the three renewable projects
  2. Gas plant maintenance is minimal, renewable maintenance is huge. EG The Tesla powerwall batteries are only guaranteed for 10 years and current replacement value is about $550 million.
  3. The gas plant doesn’t need backup, storage, subsidies or extra grid , renewables do.

The data above clearly show that the 3 proposed renewable projects for South Australia are extremely expensive, and mainly provide intermittent electricity. They are only viable because of hundreds of millions of dollars of ongoing subsidies and common sense should tell you that projects like this will massively increase the cost of electricity.

But we have a raft of “experts” telling us that they will:

  • “Put downward pressure of prices”
  • “Lower electricity prices significantly”
  • IN his marvellous chronicle of human gullibility, Extraordinary Popular Delusions and the Madness of Crowds, Charles Mackay wrote: “Men, it has been well said, think in herds; it will be seen they go mad in herds, while they only recover their senses slowly, one by one.”


Posted by Graham at 10:38 am | Comments (13) |