MONDAY 12 DECEMBER, 2011 |
Electricity Prices To Rise 37% - Solar Power Only A Bit Player
A report from the Australian Energy Market Commission (AEMC) estimates residential electricity prices are projected to
jump by 37 per cent in nominal
terms on average by 2014.
Home solar power is yet again being made a scapegoat
by some media outlets, but its contribution to the overall jump in electricity
costs will be minor.
In June, the AEMC
residential electricity price increases of 30% by 2013. According
to the latest AEMC report, the contribution to the revised projected 37% price
increase from each component is as follows:
Feed-in tariff: 2.8%
LRET (Large Scale Renewable Energy Target: 3.8%
SRES (Small Scale Renewable Energy Scheme): -0.8%
Other state based schemes: 2.3%
While the AEMC's findings clearly show small
scale solar power
is not the main villain in electricity price hikes over
the next few years - less than 5% of the 37% national average - some in the
media have again chosen to amplify its impact in the overall situation. Factors
related to replacement of ageing infrastructure, gas-fired generation and the
upcoming carbon tax appear to play a greater role.
The AEMC have also provided
of each state's outlook.
- residential electricity prices forecast to jump by 42%, with the main drivers
being the wholesale electricity component and distribution.
- increase of 42 per cent forecast, again primarily due to
distribution and wholesale electricity price increases, with the latter being
the result of a price on carbon and increases in gas-fired generation capacity.
- 42 per cent jump in nominal terms.
- 33% increase in residential electricity prices predicted.
- 25 per cent electricity price hike forecast, mostly due to the wholesale
component resulting from increased gas-fired generation and a minor wind
- residential electricity prices are forecast to increase by 36 per cent in nominal
terms; driven in part by volatile demand, South Australia being a relatively small
market and a high dependence on gas-fired power generation.
- electricity supply to residential customers is forecast to increase by 30 per
cent with over 80% of the hike due to increases in distribution and wholesale
Northern Territory - The AEMC predicts Northern Territory residential electricity prices
will rise 16 per cent in nominal terms between the base year and 2013-2014.
Although elements of the media continue to make residential solar power a
whipping boy, savvy Australian consumers are seeing through the slagging and installing
rooftop solar panel arrays
to buffer against recent major rises in
electricity costs - and those to come.
According to recent estimates, over
500,000 Australian households
are now reaping the many benefits of
generating their own electricity.
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