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Electricity cost dissections: do they reveal – or conceal? : Comments
By Geoff Carmody, published 20/10/2017What's the 'official family' feeding the punter about cost increases within the National Electricity Market (the NEM)?
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https://www.accc.gov.au/system/files/ACCC%20Retail%20Electricity%20Pricing%20Inquiry%20-%20Preliminary%20Report%20-%2022%20September%202017.pdf
Section 2.4 on green schemes appears to look at only direct costs in terms of feed-in tariffs and renewable energy certificates. However there is an indirect cost from inefficient operation and types of thermal backup plant. Since the RET is a penalty backed quota with a generous subsidy incentive it forces thermal plant to take a back seat in sunny and windy times when it could be operating more steadily.
I believe in Australia expensive and high emitting open cycle gas plant out-produces more efficient combined cycle by two to one or so. In the northern US and UK it appears to be the reverse. Therefore those costs and emissions are a consequence of green schemes and should be factored in. Recall the 2014 RET Review found the cost of CO2 avoided was $59 per tonne but then the LGC subsidy was less than half what it is now.