LETTER: Renewable energy too expensive for Queensland
AN AUSTRALIAN National University analysis of long-term price trends shows electricity prices in Queensland have soared 135% over the past 10 years with the rise in annual household, small businesses and irrigators, such as cane growers, bills outstripping the growth of every other household expense, while also making it the fastest-growing cost for most businesses, including food and fibre-producing agricultural family-farming businesses.
Queensland was followed by Victoria with a 117% increase and NSW with 108%.
The Queensland State Government's 50% Renewable Energy Target is also going to dramatically drive electricity prices higher, acting as a kick in the guts for families while costing jobs and sending investment offshore.
The Queensland Government's plan to produce 50% of electricity from renewables by 2030 has been dealt a blow by the national power market operator, which has warned that Queensland's push for the target could lead to higher electricity prices and an unstable network.
In a submission to the Queensland Renewable Energy Expert Panel review, the Australian Energy Market Operator, AEMO, has attacked modelling used by the Queensland Government to claim its 2030 target will be cost-neutral to consumers and will not undermine network reliability.
The regulator said further modelling could reveal that some of the existing power stations would have to close, and lead to higher prices.
AEMO notes that if this reveals that the operating regime for some of these generators will be less profitable than conventional modelling anticipates, those plants could close earlier than anticipated.
Such a target would again drive up electricity prices for households and businesses. It would also destroy the value of most of the electricity assets held by the Queensland government.
People expect the government to provide reliable, affordable power and any government worth its salt would be doing that.
chief executive officer