Monday, March 13, 2017

South Australia Paying the Price for Wind and Solar Energy

Tesla is selling lithium battery storage to the state of South Australia to provide electricity for a few hours. No word on what happens when the electricity is unavailable for more than four hours.
"The state relies on solar and wind generation for about 40% of its electricity, a higher proportion than any other Australian state.
Mr Musk said Tesla could supply batteries at a price of $250 per kilowatt-hour.
South Australia was hit by a statewide blackout in September after a storm knocked out the transmission system. That led to criticism from Mr. Turnbull and his right-of-center government about the rapid adoption of renewable energy and a turn away from the coal-fired and natural-gas power plants that supply much of Australia’s electricity.
On Thursday, the Australian Energy Market Operator projected a shortfall in gas-power electricity generation in the southeastern states as early as next summer if no action is taken.
Mr. Turnbull said in a speech the same day that Australia was losing a competitive advantage underpinned by affordable, reliable energy. Electricity prices for families had doubled over the past decade, and for industrial users had outpaced inflation by a factor of three between 2002 and 2013, Mr. Turnbull said."WSJ
Wind and solar generated electricity has caused prices to double and triple over the last 15 years and that does not include the cost of the new limited supply batteries. To provide a stable and affordable long-term supply of electricity, fossil fueled generators will be required and will add to the cost of electricity.

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