Wednesday, 6 September 2017

Energy Policy is a mess

Energy policy has been a mess ever since Tony Abbott made the decision to say the price on carbon was a carbon tax. This was of course a lie that his Chief of Staff has now fessed up to.

Since then we had had an investment strike purely because the Coaliton has no idea of what to do.

A price on carbon would be preferable. however it seems the 'right wing' rabble of the coalition willnever countenance that
It seems as the Clean Energy target that was announced in the Finkel Report is the nearest we may get to a bipartisan policy. Even then it seems the same 'right wing' rabble will not even cop this. As David Blowers shows this is essential.( it has heaps of links in it)

New coal plants are impossible. The market has spoken. no bank wants to finance such a plant nor are there any ideas to issue bonds to fund such a plant.
Isn't it ironic that people who claim to believe in the market then want to criticise market players when they do not do things they think they should do!

It is clear renewables are reducing in cost dramatically and will continue to do so. My guess is by 2022 when Liddell goes out of action batteries for solar electricity on rooftops will be so cheap most homes will have them but it is only a guess.
It is clear we will need a suite of different plants to ensure electricity blackouts do not occur.
I would have preferred nuclear but as John Quiggin shows this will not occur.

We will NEVER go back to ultra cheap electricity again.however as Finkel showed we can getr them to fall modestly.

Check out this oldish report from the very good Grattan Institute.

Also from Knowledge Problem on OECD articles. thanks Jim Rose