Tuesday, July 19, 2016

Chickens Roosting

I knew the South Australian economy was in trouble but I hadn't realised how much until today. 

No wonder busiesses are closing and dumping thousands of people onto the unemployed list.  No wonder no new businesses are being established.

From The Austrralian:-

 (The only paper worth reading.)

"It is unusual for any story related to South Australia to appear on the front page of this newspaper. But when wholesale electricity prices in that state reached more than 30 times the prices recorded in the eastern states last week, the broader interest in the issue is obvious.
To give you a feel for the figures, last Thursday at 1.45pm, the wholesale power price in South Australia was recorded at $1001 per megawatt hour, compared with prices of between $30/MWh and $32/MWh for the eastern states. At one point, the maximum price in the state hit $1400/MWh.
Unsurprisingly, several companies operating in South Australia, including BHP Billiton and beleaguered steelmaker Arrium, warned state Treasurer and Energy Minister Tom Koutsantonis that they might temporarily close their plants because of the high and erratic electricity prices.
But more worrying still are the medium-term prospects for the state: the chairman of the Energy Users Association warns that “large end-user customers are feeling the pain. As large customers roll off their energy contracts and need to renew those contracts, they are faced with significantly higher prices in South Australia”.
Electricity contracts for delivery next year and in 2018 are priced at between $90/MWh and $100/MWh in South Australia, compared with between $50/MWh and $63/MWh in Victoria, NSW and Queensland."

These are the Labor loons who say a coal fired power plant at Whyalla could not compete with wind farms.  He conveniently forgot to  mention the massive government subsidies which support the otherwise grievously uneconomic wind farms.


Anonymous said...

I have read that households in SA are currently paying about $0.90 /KWH for domestic power supply. Ouch!


David said...

Adolf, I know you don't like learning, but here we go again.

South Australian electricity has been dearer than in other states since Jesus Christ played full back for Jerusalem.

Here is a chart from the Australian Electricity Market Operator for July 1999. Total wind power installed in South Australia at that time 0Kwh. Pick a day, any day in the chart and you’ll find SA dearer than the other states. Yes, mistakes have been made with new generation capacity but the fault does not lie solely with wind turbines or other renewables, it lies with the decision to sell ETSA and create a “competetive market” where the only competition is to see who posts the monthly account.

Adolf Fiinkensein said...

They had no electricity in Jerusalem.

Are you trying to suggest to me that the gummint can produce electricity more economically just so long s it faces no competition?

Just like they do in Venezuela?

Anonymous said...

The whole saga sounds similar to the California power crisis that happened a few years ago.
It basically went like this..
-Dams, coal, nuclear, etc weren't considered environmentally friendly
-burning natural gas was OK, because the only by-product is water (it's a non renewable source BTW)These were the only viable power station at the time under their legislation.
-The state as a whole couldn't produce enough power to meet it's own needs, so they imported power from other states (the fact that it's coming a coal powered station in another state didn't seem to be a problem for them)
-The Power distribution companies in California weren't allowed to pass on increasing costs to the consumer
-Eventually the outer state power companies wouldn't supply California, because they weren't paying their bills.

As I've said before, it's bemusing to watch from afar.

Kiwi in OZ

David said...

Adolf, did you look at the chart? Or are numbers too hard for you?

Adolf Fiinkensein said...

Your numbers are.

You need more sand for the burying of your head.

Adolf Fiinkensein said...

Further to last

David you haven't bothered to explain WHY the power prices have been so high in SA.

Tell me. Do you kneel down five times each day to pray with your arse pointing to the nearest wind farm?

David said...

SA has historically had high power prices.

Partly due to the long transmission distances.

Partly due to the lack of trees in the state.

Partly due (since 1999) the sell off of the poles and lines.

Coal fired power stations on the Iron Triangle lose power due to the transmission distances.

Gas fired power stations in Adelaide are expensive as the gas is piped a long way from the source.

Small nuclear power stations in The Iron Triangle, Eyre Peninsula and South East would go a long way towards alleviating the high prices.

But to simply blame the high prices on wind generation is to ignore history.

David said...

Jebus, look at the time - best be off to bed! My clock only shows 8:33, must need more power.

Adolf Fiinkensein said...


Your pathetically brainless excuses are not born out by this morning's newspaper.

Wind turbines in South Australia were using more power than they generated during the state’s electricity crisis, which has prompted major businesses to threaten shutdowns and smaller firms to consider moving interstate.

The sapping of power by the turbines during calm weather on July 7 at the height of the ­crisis, which has caused a price surge, shows just how unreliable and ­intermittent wind power is for a state with a renewable ­energy mix of more than 40 per cent. ...

David said...

And of course the only person who knows what is going on is Rupert. I don't know why you bother with that vile rag, not even useful for arsewiping.

As a side note: sales of that rag are down 70% in my shop since Turnbull called the election. Their right wing fearmongering is driving readers away in droves. Even the Saturday issue, always the best seller, is down by half. Now, I am not saying The Advertiser is the better paper, but at least it has 10 pages of footy.

Adolf Fiinkensein said...

Such is the intellectual paucity of you clientele.

You poor bastard.