A new report released by Reputex has called on government policy to change to help support the adoption of renewable energy while blasting the continued use of fossil fuels.
The report also claims that if things remained unchanged that wholesale prices of more than $100 per megawatt hour by 2030 will be a reality, largely because of a heavy reliance on gas-fired power with high fuel prices.
If however renewable energy was adopted over fossil fuels in the same period of time we could expect electricity princes to be $40-$60 comparatively.
This coming after the Finkel review suggested greater adoption of renewable energies would lead to a more competitive market.
Renewables the way forward
Without a renewable energy policy there will be an over-reliance on gas fired generators which in turn will lead to rising wholesale prices due to the supply and demand balance.
This can be countered by investing in renewables due to higher renewable energy supply which will increase competition and further drive prices down.
Regardless of whether an energy target is created or not coal fired plants are set to close due to a lessening reliance on power which values flexible supply and changing economics of the grid.
“Analysis indicates that renewable energy with storage continues to be the most economically favoured solution to generator availability. Modelling indicates that renewable energy – with storage – continues to be the cheapest source of reliable energy supply for peaking and load-following generation.”
“Traditionally, gas-fired generation ($96/MWh) was the least cost source of supply for load-following and peaking services. High gas prices, however, are changing the calculation to make Wind ($80/MWh) and Solar ($85/MWh) with energy storage projects competitive in providing flexible generation.”
Fossil Fuels have to go
RepuTex’s energy and carbon market director Hugh Grossm saying on the situation,
“Renewables are a ‘lay down misere’ to out-compete traditionally fossil-fuel sources in Australia for the foreseeable future,’ Mr Grossman said.
The solutions according to the report would deliver a low cost, reliable alternative to the current projected outcomes, while also dismissing the want for nuclear power unless there was a large distortion of the current thinking by the Government.
