Energy Poverty in Australia: COVID Lockdowns Drove Costs Up 50%

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Discussion Overview

The discussion centers on the issue of energy poverty in Australia, particularly in the context of rising energy costs during COVID lockdowns. Participants explore the factors contributing to high electricity prices, the impact of energy policy decisions, and comparisons with energy costs in other countries, including the US and Europe.

Discussion Character

  • Debate/contested
  • Technical explanation
  • Conceptual clarification

Main Points Raised

  • Some participants note that older Australians are facing increased energy costs due to COVID lockdowns, which have led to higher usage of heating and cooling at home.
  • There is a suggestion that Australia's energy prices have risen due to the transition from coal to more expensive renewable energy sources, influenced by advocacy and government policies.
  • One participant argues that mismanagement of energy policies in Australia has contributed to both high costs and reliability issues in the energy grid.
  • Comparisons are made between energy prices in Australia and the US, with some participants questioning the validity of these comparisons based on differing energy mixes and definitions of energy costs.
  • Some participants propose that the high costs of energy in Australia may not solely be attributed to the shift to clean energy, suggesting that implementation strategies also play a significant role.
  • There are references to political factors influencing energy pricing, including past government schemes that have led to increased costs for consumers.
  • Participants discuss the public's willingness to pay for clean energy initiatives, noting that socio-economic factors influence opinions on energy pricing and policy.

Areas of Agreement / Disagreement

Participants express multiple competing views regarding the causes of high energy prices in Australia, with no consensus on whether clean energy transition is the sole factor. The discussion remains unresolved, with differing opinions on the impact of policy decisions and market dynamics.

Contextual Notes

Participants highlight the complexity of comparing energy costs across different regions, noting that definitions of energy costs and the energy mix can significantly affect interpretations. There is also mention of unresolved issues related to the effectiveness of energy policies and their economic implications.

Who May Find This Useful

This discussion may be of interest to those studying energy policy, economics, or environmental science, as well as individuals concerned about the implications of energy costs on different demographics.

  • #31
russ_watters said:
To try to keep this focused on the OP, central to the issue raised by the OP is the apparent mismatch between perception and reality when it comes to renewables: Renewables are (apparently) cheap, so why does installing nenewables make electricity more expensive instead of less expensive? That's the question I'm answering.
Its not a simplistic equation, many other factors at play. My point was only that where you have real market-based decisions rather than gov fiat, renewables are competitive and do not translate into higher retail prices
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  • #32
What is the cost of nat gas in Australia - ~$7 AUD / gigajoule?

at 0.77 exchange and 947.82 CF / GJ = ~$5.10 USD / MFC compared to current Henry Hub of ~$2.75. While Australia is a net exporter of natural gas, the size of the country and lack of pipelines mean some locations require LNG

Only the US and Canada have cheap natural gas from fracking, so all this discussion about building more gas generation is likely not applicable outside North America
 
  • #33
BWV said:
I get the distinction between gWh and gW. In 2019 natural gas was 43% of installed capacity (gW) and produced 38% of US electricity (gWh). Non-hydro renewables were 14% of installed capacity and generated 10% of total electricity.
What does that tell us? What's the connection between those numbers (if any), and between them and the discussion we are having?
But gas generation varies quite a bit, electricity production from both gas and coal declined in 2016-17 and 2014-15 saw a 1194k gWh decline in coal relative to a 200k gWh imcrease in gas and relatively flat total YOY generation
Yes, that's true. What does that tell us relevant to the current discussion? Are we talking about the weather now?
Its not a simplistic equation, many other factors at play.
Yes, I believe that's what I said that started this part of the discussion.
My point was only that where you have real market-based decisions rather than gov fiat, renewables are competitive and do not translate into higher retail prices.
I know that's your point. It's factually wrong. Really, really wrong. Since you bring in government fiat, why do you think California has such high renewable adoption? It's because they subsidize it heavily ("government fiat"). And that cost doesn't factor into LCOE either. In other words, despite spending tons of money to implement renewables that doesn't show up in the retail price, the retail price is still high/rising. It's an additional level of wrong.

Note: your sources are mismatched again. We're discussing intermittent renewables, and the bottom chart is total renewables. The Hoover Dam is not part of this discussion; it operates under a totally different economics than solar/wind.
 

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