Given that rapidly rising electricity prices are now virtually ‘eating’ the rapidly shrinking credibility of our governments and leaders, both federal and state, it is inconceivable to most voters that none of them seem to have a solution – a plan to at least stabilise prices, and secure supply.
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After all, the potential closures of the coal fired power plants, such as those in Port Augusta, SA, and Hazelwood in Victoria, were known for many years. Voters simply can’t understand that there were no contingency plans to handle what threatened to be king hits on base load power generation capacity in each state, but also carrying consequences beyond each state, given the inter-connection arrangements.
Unfortunately, rather than develop deliverable plans, politicians have simply played politics with the issue, attempting to score short-term points on each other, in a totally irresponsible blame game. They, more than any other single factor, are responsible for the blow out in prices that are killing many households, and threatening the viability of many industries.
It is a situation that could have, and should have, been avoided.
The voter anger is also being compounded by their inability to understand their power bills. Moreover, if they attempt to speak with their power company for an explanation, or to settle some payment arrangement – good luck. If you can get through you will probably get someone in Mumbai or Manila who attempts to be reassuring but couldn’t care less about your plight!
What’s worse is that many older people, fearful of the bill and the danger of being disconnected, simply pay up, even though they increasingly can’t afford to do so.
Most of us now know that we are being ripped off, and see government agencies such as the ACCC, and Fair Trading (that are supposed to be protecting our interests) as toothless, disinterested, tigers.
The policy challenge is to secure affordable electricity prices, and supply, within the longer-term imperative to meet our national Paris commitments to reduce our emissions by 26-28 percent by 2030 – that is, to make the transition to renewable energy, as smooth and cost effectively as possible.
This demands a national transition strategy, built on genuine bi-partisan support, at both the national and state level. The recently released Finkel Review provided a realistic framework but, rather than crystallise apolitical support, it has been used for even more political point scoring within the Turnbull government, between the government and the Shorten opposition, and between the federal and state governments.
No real progress has been made in terms of a deliverable transition, although, significantly, they have all accepted the need to focus on ‘dispatchable electricity’ – that is, solar and wind projects now need to include back up, mostly storage capability, to smooth out the morning and evening peak demands that arise when the sun is not shining, and the wind is mostly not blowing.
The rush to install solar and wind farms, without back up, allowed them to exaggerate the benefits in terms of lower cost and reductions in emissions, creating very real problems in terms of sustainable supply.
Unfortunately, there are no ‘silver bullet’ solutions anymore. Our pollies have seen to that! An effective response will take time. But the available Australian technologies, for cheap base load solar thermal and battery storage, exist and will reduce electricity prices significantly, in time.
