Electricity demand has dropped so much that Australia currently has at least 3 major coal fired power stations more than it needs! (This year the surplus capacity at peak demand is estimated to be around 8,000 megawatts)
In early July this year there was actually zero demand for power station generation in Queensland, mainly due to an estimated power output of 600 megawatts from rooftop solar.
A report by the Australian Energy Market Operator have warned that the electricity generation market is close to breaking point.
Electricity demand, which has been dropping since 2009, will continue to drop for at least the next three years. The closure of major industries such as aluminium smelting and car manufacture is only likely to further decrease demand.
Why Aren’t Power Prices Dropping?
In most ‘Free’ markets when demand drops so do prices.
While demand has been over the past few years electricity prices have doubled . . . . and don’t think that’s mainly the Carbon Tax!
Over 51% of your bill is for Network costs (Federal Treasury Estimates)
When the Goverments’ privatised electricity they allowed the Power Companies to recoup their investment in network upgrades by increasing their charges.
The networks have spent over $45,000,000,000 in the last five years to meet an ‘Increasing Demand’ which we are all now paying for in our bills.
The ‘Joke’ in all this is by increasing their prices the electricity companies have made their ‘Main Competion’, Roof Top Solar, more attractive!
So after 5 years of getting everything wrong are the power companies interested in doing the right thing? . . . . Like investing in generating power from renewable resources that work when the sun isn’t shining?
No they are lobbying the government to wind back the renewable energy target!
It’s no wonder that some people with solar panels are talking about disconnecting from the grid!
For more informaton click on this link from the ABC: The Price of Power