A new report shows wind power in South Australia has not increased wholesale electricity prices, nor created a need for additional back-up power generation capacity.
Around a quarter of South Australia’s electricity is now sourced from wind power; growing substantially from just 6% in 2005/6.
The eight year study of South Australia’s electricity sector by Windlab Systems shows during the period between 2005 and 2013, wholesale electricity prices have not risen, even if the full cost of the renewable energy certificates (REC) is included. Publicly available data from the Australian Energy Market Operator (AEMO) was utilised for the study.
Reliance on expensive and emission-intensive peaking power plants has reduced as have electricity imports from Victoria states the report. Windlab says electricity related carbon emissions have plummeted 34% even though power consumption has remained stable.
“The findings should provide clear guidance to the Federal Government’s Renewable Energy Target (RET) review panel that wind energy and by association the RET should not be a scapegoat for explaining increases in domestic and business energy costs,” says Roger Price, the CEO of Windlab.
“The study further underpins the conclusions of the Clean Energy Council’s commissioned report into the positive cost implications of the RET.”
The Clean Energy Council report indicates abolishing Australia’s Renewable Energy Target (RET) would see Australian households paying billions more for electricity.
A copy of Windlab’s study report can be viewed here (PDF).
The evidence is mounting that the benefits of Australia’s Renewable Energy Target far outweigh the costs. Even so, there are fears the RET review is heading towards a “predetermined and biased outcome” that will result in the loss of thousands of jobs, billions of dollars of investment and also create additional financial burden on Australian households and businesses.
