Although the wind is free, converting it to electricity is NOT. Wind and solar energy are the most expensive energies on our grid. All over the world, renewable energy is creating havoc on the grid and skyrocketing electricity rates. We mention many of these on our tab at the top of the page. Who does this harm? All of us because higher electricity rates affects our manufacturers, which affects our jobs and most importantly affects our poor. BigWind is a Big Bad Idea….
The surge in renewable energy such as wind farms in South Australia has left households with whipsawing electricity bills as power companies push through a round of steep price rises.
AGL, the dominant supplier in the South Australian market, is hiking its charges by 10 to 12 per cent from the beginning of July, well ahead of the 7 per cent rise flagged by Origin Energy. EnergyAustralia is to outline its new tariffs later in the week….
“Not only are they paying through the nose for their electricity, but with large price declines last year, and now the big rises this year – you can’t get stability in household budgets….
Surging power prices have pushed households to install solar panels, and South Australia has led the way with more than a quarter of households investing in panels, around twice the rate of Victoria and well ahead of the estimated 10 per cent of households in NSW, according to data from the Australian Energy Market Commission.
“Those with money will do that, and will be OK,” says Ross Womersley, the executive director of the South Australian Council for Social Service. “But the people we worry about can’t afford to make that investment, and will be left holding up the grid at increasingly expensive prices.”…
Large, baseload power generators enable electricity retailers to commit to supplying households and businesses at competitive prices.
But renewable energy supplies only intermittently, which pushes up the price the retailers can “hedge” or write firm supply contracts at.
“There is a shortage of hedge product relative to demand in South Australia,” Rylah said. “That has been evident since last November, but households have been insulated until now, with the contract being reset.”
Late last year, the wholesale price for electricity in South Australia spiked to more than $100 a megawatt hour of electricity, settling more recently at around $80, which is well above the level of around $45 in Victoria….
Source: Prices swing wildly as renewable use rises