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Ditch RET to set economy free : Comments
By David Leyonhjelm, published 29/8/2014The RET has an even greater impact than the carbon tax on the bottom line, reducing our living standards and the competitiveness of our entire economy.
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Wind power is more expensive than coal power. That's why we have to mandate it and pay a subsidy of about $40/MWh. Plus you have to add the cost of back up generation and extra transmission and grid stabilisation. These costs are passed on to the consumer as higher electricity prices
You should also understand that 1 unit of wind energy does not abate the emissions of 1 unit of fossil fuel generation. In fact, wind is around 50% effective at abating emissions from the generators it displaces. So the abatement cost with wind power is about double what the proponents claim. Furthermore, the effectiveness declines as the wind energy proportion of total electricity generation increases: http://www.sciencedirect.com/science/article/pii/S0301421513007829.
The BREE AETA report gives the latest projections of the cost of electricity by technology for Australia. http://www.bree.gov.au/sites/bree.gov.au/files/files//publications/aeta/australian_energy_technology_assessment.pdf
LCOE in $/MWh:
New black coal, super critical = $89
Nuclear = $97
Wind = $117 + back up +, extra transmission + grid stabilisation
Gas backup (OCGT) = $211
Geothermal = ~$200
You can see a rough comparison I did of the additional electricity generation and transmission costs to produce electricity with 90% reduction in CO2 emissions with two options: 1) mostly renewables or 2) mostly nuclear - see Figure 6 here: http://oznucforum.customer.netspace.net.au/TP4PLang.pdf