Thread: Big storm and no power in SA

Wondering what it would be if all subsidies were removed from all generation forms?

Originally Posted by donh54

Wondering what it would be if all subsidies were removed from all generation forms?

It's very complicated because many subsidies are hidden.
Another issue is whether subsidies are intended to benefit consumers, to boost companies or to ensure a reliable supply of energy.
Also, the time period is important. Coal gets more expensive over time because the cost of buying coal keeps rising. Renewable power plants are expensive to build and then cheap to run, so the longer the time period the more the numbers favour renewables.
If you Google 'electricity subsidies' or similar you will find lots of competing analyses.
One thing I did note was that in 2015 global fossil fuel subsidies were four times as much as subsidies for renewables. So much for the argument that coal is cheap power.

Originally Posted by DiscoMick

It's very complicated because many subsidies are hidden.
Another issue is whether subsidies are intended to benefit consumers, to boost companies or to ensure a reliable supply of energy.
Also, the time period is important. Coal gets more expensive over time because the cost of buying coal keeps rising. Renewable power plants are expensive to build and then cheap to run, so the longer the time period the more the numbers favour renewables.
If you Google 'electricity subsidies' or similar you will find lots of competing analyses.
One thing I did note was that in 2015 global fossil fuel subsidies were four times as much as subsidies for renewables. So much for the argument that coal is cheap power.

One of the issues with subsidies is "is that a subsidy?". One example of this, which is where coal can be considered heavily subsidised, is the exemption of fuel excise for off road use. This applies to fuel used in mining, but also, for example, in farming, power generation etc. Is not having to pay the excise a subsidy? After all, this punitive tax was originally introduced to tax the rich when cars were a plaything of the wealthy, and later specifically used to build roads, before finally going to general revenue, and has always been charged specifically for on road use, spreading elsewhere only where there was a danger of the fuel going to road use.

Yes, that's true.
Another example is public funding for rail lines which carry coal, but may also carry other trains.

Bundaberg had a big storm yesterday.
Bundaberg storm leaves thousands without power, Ergon calls in reinforcements - ABC News (Australian Broadcasting Corporation)

200 power lines damaged.
27,000 properties lost power.

Interestingly SA seems to have its emergency backup generators online for testing today, some 227MW of "other" power on the NEM Watch thingy.

Nem Watch : RenewEconomy

Originally Posted by bee utey

Interestingly SA seems to have its emergency backup generators online for testing today, some 227MW of "other" power on the NEM Watch thingy.

Nem Watch : RenewEconomy

this might interest you

The two, SA Government-owned, “Emergency Generators” produce first power whilst commissioning

Originally Posted by Eevo

this might interest you

The two, SA Government-owned, “Emergency Generators” produce first power whilst commissioning

Saw that when it was published. The "other" component of the energy mix is already gone, be interesting to read how the test went.

............

An interesting article on the change from SA predominately importing power to predominately exporting, mainly due to a new gas contract for Pelican Point.

South Australia experiences dramatic fall in energy costs after gas deal | Australia news | The Guardian

Who would have guessed?