Essay by Eric Worrall
h/t Phil Salmon; Will nobody turn up the solar panels?
Entire Sydney suburbs plunged into darkness as more power outages loom
Suburbs around Sydney suffered power outages on Monday night, as officials warn more blackouts could be on their way.
Homes in Beacon Hill, Frenchs Forest, Narraweena, Cromer and Dee Why were all temporarily without power, Ausgrid said.
Queenslanders were warned they were at risk of a significant power disruption between 5.30pm to 8pm on Monday, but blackouts were avoided.
Meanwhile, NSW is on high alert from 7pm on Tuesday due to a predicted supply shortfall.
The power outages come as Federal Energy Minister Chris Bowen warns the system is “under pressure” and said households should ‘brace for a bumpy period ahead’.
“In terms of the immediate situation, it’s being very actively managed,” Bowen told Sunrise on Tuesday morning.
“We managed to avoid any load shedding or blackouts in Queensland last evening.
…
Read more: https://7news.com.au/technology/power-outage/entire-sydney-suburbs-plunged-into-darkness-as-more-power-outages-loom-c-7154237
The AEMO government regulator greensplained that the shortages are because greedy power plant operators refused to provide power at below cost.
Power companies accused of ‘unconscionable conduct’ as they withdraw from grid
By Mike Foley
June 14, 2022 — 3.43pmPower generators are exploiting the chaotic energy market by withdrawing power supply from the electricity grid and waiting until strict rules to prevent blackouts kick in, forcing the energy market operator to direct them to fire their plants back up and triggering profitable compensation payments.
There’s no law stopping power companies from withdrawing their electricity generation from the market, and in the past two days they have reduced the volume available by 2 gigawatts in Victoria, 3 gigawatts in NSW and 1.5 gigawatts in Queensland.
The withdrawals were prompted by the Australian Energy Market Operator’s (AEMO) decision to put a cap on spiralling prices that electricity generators are charging for wholesale power, which crimped the profit margin of some generators, which are battling coal prices that are soaring because of sanctions on Russian exports.
But the electricity market is tightly regulated and AEMO has powers, designed to prevent blackouts, which enable it to force generators to fire up units and start supplying electricity to the grid. Whenever AEMO does this, companies are awarded compensation.
AEMO was unusually forthright in a public statement yesterday when it said that directly after price caps were imposed on power companies “available offers were reduced”.
…
A spokesperson for the Australian Energy Council, which represents major power generators including AGL, EnergyAustralia and Origin, said its members faced a “complex issue” but were seeking solutions to the power crunch.
“The price cap unintentionally means that some plants can’t recover their fuel costs. Participants are legitimately seeking ways to resolve the problem,” the spokesperson said.
…
Read more: https://www.brisbanetimes.com.au/politics/federal/power-companies-accused-of-unconscionable-conduct-as-they-withdraw-from-grid-20220614-p5ath9.html
If only there was a reliable, dispatchable 24×7 zero carbon energy source whose generators only required refuelling every couple of years, which Australia could refuel from our world class mineral resources, which could shield Australian consumers from volatile fuel prices, and maintain stable baseload during difficult circumstances.
From the above article:
” ‘The price cap unintentionally means that some plants can’t recover their fuel costs . . .’, the spokesperson said.”
Thereby reflecting the dismal knowledge the spokesperson has about the results of intentionally capping prices.
The “spokesperson” was “A spokesperson for the Australian Energy Council, which represents major power generators including AGL, EnergyAustralia and Origin”
SO?? Did he lie?
What exactly is the point of that post Nick?
According to Gordon Dressler above
“Thereby reflecting the dismal knowledge the spokesperson has”
I think he thought it was AEMO.
So the power was available but just not economical to access it. I smell nationalization of power companies. Then they’ll announce nuclear is the only solution. Once in control of Aus electricity they’ll tax and charge the hell out of it and brag about the new found reliability they brought/manipulated.
Oh God. Can you imagine the government in charge of a NUCLEAR power plant?
Like nuclear submarines for example?
I despise government but think it makes sense from a security (nuclear proliferation or terror threat) perspective to put the Navy in charge of nukes colocated with military bases.
Well actually I can.
There are Many on US Navy ships, where there has never been an “nuclear” accident that caused anyone any physical harm.
This could not happen to a nicer government.
Perhaps the public should make fires under their posteriors.
“The withdrawals were prompted by the Australian Energy Market Operator’s (AEMO) decision to put a cap on spiralling prices that electricity generators are charging for wholesale power, which crimped the profit margin of some generators, which are battling coal prices that are soaring because of sanctions on Russian exports.
But the electricity market is tightly regulated and AEMO has powers, designed to prevent blackouts, which enable it to force generators to fire up units and start supplying electricity to the grid. Whenever AEMO does this, companies are awarded compensation.
AEMO was unusually forthright in a public statement yesterday when it said that directly after price caps were imposed on power companies “available offers were reduced”. “
If only they’d understand the basics of economics, as taught by the Austrian School. Price controls result in shortages, period, full stop. By putting price caps in place, they INSURE that some generators will withdraw their supply, as their costs are above the capped price. Duh?!?!?!
Things happen on the margin – set the controlled price below the marginal producers cost and you lose that marginal producer. Funny how it’s so difficult to get that basic concept through to those that think they can control markets.
Wouldn’t now if it still applies but aaaaages ago I stumbled upon A Figure which piqued my interest.
It was that, at whichever time agaes ago it was, that there was more electrical generating capacity under the bonnets/hoods of the cars of this world than there was ‘proper’ installed generating capacity.
Car alternators obviously
Bring that up-to-date where it’s been suggested more than once, that the batteries of electric cars be used as ‘Grid Storage’ balancing peaker device things.
(Such are the capabilities of the new smart meters being installed in UK houses – a smart meter for the house and a separate one for the car. One that can not only be remotely disconnected but can also discharge your car with equal facility to its charging ability)
Why not use that technology now?
Have an inverter and meter installed and if the grid looks like falling over, ask folks to attach said inverter via some ‘jump leads’ to their cars/trucks/whatevers and then start the engine.
Even a modest little motor should be able to bump 500Watts into an ailing grid and arrest a complete collapse and blackout.
A big truck should be good for a couple of kW at least
Don’t especially need a financial reward – howzabout a day’s free parking or a day’s relief from the local congestion charge, or motorway toll etc etc sort of thing.
(I can sense even now, just suggesting such a thing, the Evil Vibes emanating from any greenies reading this – can’t you too?)
And what happens when all the automotive batteries need recharging and it is time to go to work? Of course, there is also the problem of all that fuel cost and CO2 emissions for the cars which also have engines.
??? I read it as Peta suggesting supplying off the alternators, not the batteries, Peter. The batteries would remain charged.
It’s an interesting, outside the box idea, but the exhaust…
…and then the greenies have the sads again.
Sorry Peta but “howzabout a day’s free parking or a day’s relief from the local congestion charge, or motorway toll etc etc sort of thing” are ALL financial rewards.
. . . which are battling coal prices that are soaring because of sanctions on Russian exports.
Can somebody explain that statement. How does coal get more expensive due to sanctions on Russia? I though Australia was a coal exporter.
Supply and Demand curve. If you increase the price of available coal with sanctions and the rest of the coal exporters are unable to make up the shortfall then prices will go up with the scarcity until the point where the sanctioned coal is suddenly economical once again. Just because Australia exports coal does not mean it has a ready supply of coal just waiting to shovel onto ships to send overseas.
Shouldn’t the Aussie govt be reprimanding the coal miners for charging so much for their coal? After all, their production costs did not rise because Russian stopped exporting so much coal.
If the bottom suddenly dropped out of the coal industry and coal miners weren’t even able to give it away, then would you advocate for the Australian government to buy up all the coal at a pre-collapse level to help them out? If foreign markets are willing to pay x amount for coal then coal is now worth x – it’s a very simple lesson to learn.
Yep, that is why where are so many buggy whip companies still operation in NYC!
Prices are set by supply and demand, not costs.
The only role costs play is that when price drops below cost, supply disappears.
I don’t know what is happening in the AUS coal mines BUT if they are increasing production to meet the higher demand I can guarantee that the average per ton cost of production HAS increased.
The mining companies would need more miners and/or work them longer hours increasing the labor expenses. They would be reopening mines or areas of mines that were shut down because they were less productive increasing per ton costs. They may need new equipment to mine and move the coal. The trains that carry the coal to the docks may not be of sufficient numbers to meet the higher demand, thus increasing the cost of shipping.
I am not in the coal business, but I remember the days of the oil embargo. I lived in Hampton Virginia, which neighbors the shipping terminals for the coal trains from the mines in West Virginia and western Virginia. The tracks were full of loaded coal cars and over a hundred coal ships were sitting at anchor in the Chesapeake Bay waiting to be filled to carry the coal to Japan among other closer destinations. Back then there was the ability to use coal in place of oil. Now the “first” world’s government are tearing down coal generation plants so that will no longer be an option.
Oh, but “renewables” will provide ALL the energy we need by 2030, or some such BU!! Sheep.
Since operating at a loss is apparently expected of power companies, why don’t the regulators and other politicians involved in constraining the power companies cut their own salaries as a show of good faith?
Anytime government politicians, administrators and bureaucrats get involved things go to hell.
They need more daylight saving hours!
NUCLEAR, you dimwits!!! (Is that too strong of a thing to say…?)
Government Policy should be to switch off power to areas that voted for the Greens in large numbers as that is what they were voting for.
AEMO did just that if you check the suburbs that were outed. That is right in the heart of greens/teal voter territory.
So this is ominous. Any bets on Al bin Sleazy imposing such a law and thus taking control of the means of production of power? “You vill produce ze power NOW!”
How has Australia come to a point where the Federal Energy Minister considers it a positive point that, while the largest city had blackouts (in WINTER no less – imagine what summer will be like?) they “managed to avoid any load shedding or blackouts in Queensland last evening”
What ScuMo SHOULD have run on in the recent conservative debacle was not wishy-washy green policies but to restore the energy efficient and non-intermittent coal and gas power generation as we move towards nuclear. He would have won in a landslide as those who abandoned the right would have instead voted FOR them.
But like conservatives everywhere, they lack the testicular fortitude to stand against the MSM and lefty agendas.
There havent been any system operator mandated power cuts yet because of supply shortage . That could come this week or this month
Some local lines owners may make local cuts based on lack of lines capacity. My hot water was cut for most of evening last night.
However as many predicted here the rush to make coal bad has consequences and we know the shortages will result sooner or later this winter in eastern Australia
No outages at our place in Sydney. Have the heat pump on full on a chilly morning.
No gas line to the house?
Heat pump or reverse cycle a/c is far better as it can cool in summer as well
As long as it doesn’t get too cold or too hot…
They should form more government committees and add additional regulations to fic this problem.
Or get rid of the unreliable green-energy money-pits.
You got the right, Robert. Forming a committee to explore the parameters needed to form a committee that will outline the scope of the problems that arise when forming a committee to investigate a problem is always the answer.
This is all due to the Big Coffee and Big Donut lobby, of course.
Australian politicians of Green persuation are doubling down. That includes most in all political parties, including some in the Conservative parties. They have come out swinging, demanding the closure of fossil fuel plants and more subsidies for renewables and supporting infrastructure.
Australian politicians tend to be arrogant. They can never admit they are wrong even in the harsh reality.
Australia used to have a stable, reliable, cheap power supply when the grid was fed by coal in plants that were owned by the state governments.
Then all of the states were sucked into the privatisation theme allowing all the assets to be sold off to private companies (some overseas) and the grid management came under the NEM and AEMO with a bidding system that favoured “renewables at the expense of the coal and gas units.
That’s when the rot set in.
We are now seeing the end result of mismanagement by all state and federal governments since then.
Melbourne is even worse.
Australia is such a disaster they should turn it into a penal colony or something.
Imagine still being proud of your country when your government took your guns and locked you up for not injecting poison into your body. And you did nothing but say “hey mate!”
Complete misinformation. this a scientific blog, the opposition to the green humbug over climate is based on science information
You are just repeating ideology based misinformation
For slow-learners, teaching is usually most efficient when the positive, or negative reinforcement happens immediately after the assessment of progress.
If only there was a reliable, dispatchable 24×7 zero carbon energy source whose generators only required refuelling every couple of years, which Australia could refuel from our world class mineral resources, which could shield Australian consumers from volatile fuel prices, and maintain stable baseload during difficult circumstances.
How is it that antinuclear Karens still dominate Australia’s energy policy and even public opinion? Australia is the perfect location for nuclear power – remote locations, coastal cities, even uranium.