Queensland switches back to coal

Once upon a time Australia had among the lowest electricity costs in the world but that was in the days where the market was not distorted by carbon taxes, mandatory renewable energy targets and subsidies for solar power. Coal prices are declining while gas prives are rising. This from The Australian as Queensland goes the way of Germany:

QUEENSLAND’S largest power generator will today declare that Australia is one of the world’s most expensive countries for energy and warn that the electricity market is being distorted by the carbon tax, mandatory renewables target and solar-rooftop subsidies.

After Stanwell took the extraordinary step yesterday of announcing it would mothball its biggest gas-fired power station and resurrect a coal facility built in the 1980s – sparking predictions that gas-fired power plants would be withdrawn in other states – it will today call for a scaling back of the renewable energy target.

Before the introduction of the carbon tax, the RET scheme and solar feed-in tariffs, the abundance of coal had made Australia a source of low-cost electricity, the company will say. “These policies appear to have been implemented for ideological reasons with little analysis of the impact on electricity prices and economic growth,” Stanwell chief executive officer Richard Van Breda will say.

Stanwell will issue its warnings as part of its submission to the federal government’s energy white paper, being developed by Industry Minister Ian Macfarlane.

The submission will caution that a raft of energy policies is eroding Australia’s competitiveness in manufacturing, which is a sensitive issue for the government amid internal tensions over taxpayer handouts to businesses, including SPC Ardmona.

Yesterday, Stanwell revealed it would withdraw its Swanbank E power station, near Ipswich west of Brisbane, from service for up to three years from October so it could sell the gas rather than use it in electricity generation. …….. A unit at the Tarong coal power station – in cold storage since late 2012 – will be returned to service later this year.

….. Germany is shifting back to more coal-fired electricity generation, reopening some of its dirtiest brown-coalmines that have been closed since reunification, despite having spearheaded Europe’s push into renewable energy. China has plans to add another 860 million tonnes of coal production by 2015. ………  

Stanwell’s energy white paper submission will raise concerns that the surge in rooftop solar panels has increased the capacity of the market, making cheaper coal-fired power stations run less efficiently. It says solar feed-in tariffs (state government schemes) have resulted in high ongoing costs for network infrastructure. …


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2 Responses to “Queensland switches back to coal”

  1. offthegrid45 Says:

    Yep I get where your comming from. Our PM will make sure to scrap the RET. That’s ok we don’t need the government to hand out insentives. We can have stand alone power, as the name suggests it’s off grid power. Renewable energy and a bank of batteries. You make your own power and keep it for yourself. Stand alone power pays for itself and then gets cheaper! You can go to a green energy company like Enviroshop, Rainbow Power Company, Off Grid Energy Australia, just to name a few. They will install your stand alone power system to easy.
    When the people of Australia find out about stand alone power, the government will be saying WT? Go Green Australia!

  2. vrazdan Says:

    I think its important to have either coal fired or nuclear power plants for maintaining the base load. Natural Gas is useful/cost effective only for peak load power. Looks like Australia is facing a problem in the ‘base load’ electricity generation.

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