Renewables Reset: Rocketing Power Prices Mean New PM Bound to Slash Wind & Solar Subsidies
Australia’s renewable energy policy has just imploded and, with it, the set-in-stone ‘certainty’ craved by renewable energy rent seekers.
Never again will wind and solar power outfits be able to rely on the bipartisan support for subsidies to renewables, critical to their ‘business’ models.
Generating power at the chaotic whims of nature’s wonder fuels means that wind and solar outfits depend (and will always depend) on a mix of mandates, targets, subsidies and penalties to force power retailers to take a product which, otherwise, has no commercial value.
As the National Energy Guarantee (effectively the Renewable Energy Target on steroids) disintegrated in the hands of Malcolm Turnbull and Josh Frydenberg, so-called ‘business groups’ (really just a front for those profiting from the greatest wealth transfer in Australian history) ranted and raved about the need for investment certainty. On their case, absent the NEG, the chaos faced by investors would equal the chaos faced by power retailers seeking to rely on wind and solar to meet their customer’s daily power needs. This, they said, would never do.
When it comes to wind and solar there really is only one ‘certainty’: not one turbine or solar panel would have ever been erected in the absence of massive subsidies, mandates and targets. That, of course, is not the certainty that troubles the profiteers.
What troubles them is that, one day soon, wind and solar will be forced to compete on a level playing field, against conventional generators.
RE zealots keep telling us that wind and solar power is free and getting cheaper all the time. However, the panic hits the moment when it looks like they’ll actually get to face their competitors in a true, head-to-head.
Now, instead of obtaining the NEG and the certainty they were looking for, those seeking to keep the gravy train running are petrified of what comes next.
Here’s the news: the NEG is dead and the days of subsidies to wind and solar are all but over.
If the new PM, Scott Morrison hopes to clock up any serious political flying time as leader, he should be listening very carefully to the 40 rebel MPs who crushed his predecessor, Malcolm Turnbull.
The revolt began over the rocketing power prices that have resulted from an obsession with intermittent and chaotic wind and solar (see above).
STT hears that the rebels will not let up until the mandated subsidies for wind and solar are slashed, effective immediately.