Guest essay by Larry Hamlin
The Energy Information Administration released electricity price data on October 6 for the first 6 months of 2016 showing lower residential prices compared with the same period in 2015 largely driven by lower cost natural gas availability.
Also on October 6 Australian Prime Minister Malcolm Turnbull slammed renewable energy obsession for causing South Australia’s energy price spikes and state wide blackout.
Turnbull told the countries energy ministers that excessive reliance on wind turbines are wrecking Australia’s power grid stability which is undermining the country’s energy security. (http://dailycaller.com/2016/10/07/wind-farms-destroyed-our-energy-security-says-australian-prime-minister/)
Household electricity prices in Australia have risen 40 percent between 2007 and 2012 with Australian states pushing heavily subsidized wind energy reliance having rates nearly double those of other states.
In addition to the recent wind energy caused state wide blackout in South Australia electricity price spikes there have occurred pushing rates to 8 times higher than the average in Australia.
Europe lead by Germany’s headlong push into costly and unreliable renewable energy experienced nine month high spot power prices (http://www.reuters.com/article/europe-power-spot-idUSL5N1CC1QI) on October 6 based on a sharp fall in renewable power output coupled with French nuclear power lowered projected base load production during the coming cold months. The German base load power price jumped form 5.75 Euro’s to 38.25 Euro’s.
Europe’s political rush into renewables have caused electricity prices there to climb dramatically while U.S. average residential electricity rates are far below Europe’s at about 12 cents/kWh with lower cost natural gas from fracking driving these results. (https://judithcurry.com/2015/08/10/will-the-presidents-clear-power-plan-save-consumers-money/)
California Governor Brown’s push for excessive reliance on unreliable and costly renewable energy in the state has lead to higher electricity costs and exposed the state to increased electric system stability concerns because of the need for significant out of state power to maintain system reliability.
So while other states in the U.S. see the benefit of increased use of natural gas without heavy handed renewable energy mandates California’s energy course remains mired in globally irrelevant purely politically driven climate alarmist baloney.