I woke up to the news on the ABC this morning that Bill Shorten wants to take a proposal to the ALP National Conference that would make it policy to at a target of 50% renewable electricity by 2030.
It seems that Shorten is as thick as two short planks- not only is this likely not achievable, but it will drive the cost of power through the roof either through direct charges to consumers or through ever increasing Government subsidies.
The drama about changes to the Renewable Energy Target earlier this year was not driven by anti-renewable ideology as the media and the ALP portrayed it. It was basically about the fact that there was no way we could achieve the 20% by 2020 mandated by Kevin Rudd and consequently there would be massive penalties imposed on the electricity generators, driving up the price of power.
Here is the thing. Renewable energy, most likely in the form of solar will soon become economically viable. It is almost competitive with the cost of installing new coal powered generators, which is the only reason why AGL announced with great fanfare it would not be investing in any new coal-fired generators.
By the time we get to 2030 it is quite possible that new solar power stations will produce power so cheaply that existing coal powered stations will be closed down and replaced by power, simply by the laws of economics. The technology around both the generation and storage of power is going through such a revolution at the moment that it will make financial sense to invest without subsidies and targets imposed by Government.
Andrew Bolt’s take, complete with pretty pictures:
Shorten vs the economy: demands higher power prices
Opposition Leader Bill Shorten is set to unveil a bold climate policy goal requiring half of Australia’s large-scale energy production to be generated using renewable sources within 15 years.
This means more than doubling green power but without using more of the hydro electricity that so far produces most of it. (Labor won’t build more dams.):
That vast expansion of wind and solar will not happen without paying a fortune in subsidies and forcing consumers to use more green power, givenhow expensive it is:
This will potentially cost taxpayers and consumers billions more each year, when we already subsidise green power by around $3 billion a year.
Effect on global warming?Nil.
Effect on the economy? Business lost, jobs lost.