Why don’t we hear about the $40,000 per household cost of decarbonisation?

Why don’t we hear about the $40,000 per household cost of decarbonisation? By Alan Moran.

In Australia, … we spend some $7 billion a year on large-scale renewables plus $3 billion a year on rooftop facilities.

Wind and solar facilities cause so much damage to the electricity grid that future installations will need to be controllable by the market manager so that they can be turned off when their operations are threatening stability. Those installing wind and solar are not pleased. However, all of these malinvestments are dependent on government subsidies. Not one cent of the $10 billion a year Australia spends on new renewable installations would take place without the regulatory and funding advantages that governments provide.

Subsidies directly to the installations are running at some $7 billion a year ($4 billion through regulations requiring retailers to incorporate renewable supplies and $3 billion through direct government support and loans). In addition to this we have a $17 billion transmission program to accommodate new renewables plus vast sums charged to customers by the market manager to ensure reliability of a national grid made increasingly insecure by fluctuating renewable supplies.

Notwithstanding all the confected guilt conjured up by domestic green activists and subsidy-seekers, Australia per capita spends far more on these economy-strangling policies than other countries.



Meanwhile, we are deliberately reducing competitiveness. Carbon-free electricity adds costs — 20 per cent to the price of glass and 30 per cent to that of steel.

In Australia, the growth of subsidised renewables has led to a saw-tooth price progression. As these new supplies have been injected into the system, prices have been depressed but following this, the most marginal coal generator will close causing a price surge.