Analysts warn that the promotion of net zero and renewable energy will destroy the energy market and lead to a significant rise in Australia’s energy prices within 10 years.
This is because Australia continued to address the energy crisis in June with supply problems that plagued much of the East Coast, and national operators shut down the electricity market for more than a week.
Kevin Yu, a researcher at the Public Relations Institute, said on July 17 that the recent market failure was “not an accident” but “casting a dark cloud” on the fossil fuel industry “until 2050.” Is all the designed features of Net Zero. ” ..
He was “threatening” by “government tactics” that investors are likely to put a regulatory burden on coal-fired generators, gas and oil projects, and downstream electricity businesses dealing with traditional energy generators. Said that.
“I know what happens if I poke my nose where the government doesn’t belong, whether it’s the transportation industry or the energy-producing aviation industry in energy distribution. It breaks the market,” he said. Spoke to Australia’s largest annual free conference, the Friedman Conference.
“Investors are ignorant and scared of Net Zero ghosts hanging in the energy market, just as communist ghosts hung in Europe in 1848.”
You described Net Zero’s goal as an attempt to form “a big government dominated by a faceless male elite circle, a renewable energy lobby, and a rent seeking conspiring to take over and demolish the energy market.” ..
Net zero competition
To pursue net zero, the government has directed investment in renewable energy, providing up to $ 8 billion in sector subsidies annually until 2030.
Meanwhile, Labor has promised to reduce greenhouse gas emissions by 43% by 2030 and invest in renewable energy while lowering energy prices.
“There is competition for renewable energy jobs and investments around the world, and Australia should lead the competition,” said Energy Minister Chris Bowen. Said..
But in the 2007 election, Kevin at the time made a similar promise. Rad government promised Renewable energy will generate at least 20 percent of Australia’s electricity supply by 2020.
Renewable energy accounted for 7% of Australia’s energy consumption in 2019-20, and promises were not fulfilled.
Cost of green energy
But despite its appeal, you argue that renewables are “unreliable,” and “if you can keep yourself in the free market, taxpayers’ money will be in the pocket of a large renewable industry. You don’t need it, “he added.
“If renewables can compete in the energy market, let’s compete in a free and fair market against the call against gas against nuclear power.”
Analysts focusing on political economy and labor relations predicted that every removal of gigawatts from the grid would raise wholesale energy prices by A $ 22 (US $ 15.25) per megawatt hour. This means that the average quarterly market price per megawatt hour jumps from A $ 89 to A $ 111.
We also estimate that over the next eight years, the 11GW capacity provided by coal-fired generators will be removed from the grid. That’s four times the wholesale electricity price, and the real flow is twice the retail electricity price, he said.
“So far, the literal doubling of electricity prices is only felt by the thousands 10002,000 households that are customers of small electricity retailers.
“But it only gets worse from here.”
Frank Calabria, Managing Director of Origin Energy, which operates Australia’s largest coal-fired power plant, will reach A $ 120 trillion (86.25 trillion) in the energy sector between now and 2050 to reach net zero by 2050. Estimated that you need to invest (US $).
If this cost is distributed to the population of developed countries (1.3 billion people), the cost of a four-person household is equivalent to A $ 369,000. This will cost $ 13,200 per household per year over the next 28 years.
“Balanced tighter supply and demand in the market is an increasingly complex challenge, and there is a backup or enhancement of the variable renewable energy supply that is met by a combination of technologies,” he said. Australian Energy Conference June 7th.
IPA Researcher You also pointed out that Australia’s emissions are far from China.
“Australia emits just over 1% of the world’s greenhouse gases,” he said.
“China emits more carbon in 16 days than Australia emits in a year. This means that two weeks of emissions from China are equivalent to one year’s emissions from Australia. Currently, China has 57 carbon-fired power plants at all Australian power plants. “