The Weekly Times has set the record straight about wind energy’s impact on electricity bills just days after publishing a report claiming the technology to be the cause of recent price hikes in South Australia. Yes 2 Renewables published this blog in defence of wind energy.
Samantha Landy reports for the Weekly Times:
Wind Farms Lower Power Bills: Authorities
It said a draft determination by the Essential Services Commission of SA released last month, which proposed an 8.1 per cent reduction in the default retail electricity price from January 1, meaning a $160 per year reduction in the average household’s bill, proved otherwise.
“To conclude that wind farms are driving up prices shows an ignorance of the facts,” BZE executive director Matthew Wright said.
“Wind turbines have no fuel costs once built.
“In the electricity market, they out-compete fossil fuel generators and cause a lowering of prices.”
Mr Wright said this is known as the `merit order effect’, which means if you introduce more of a product into a market, that is increase supply, then prices fall.
Clean Energy Council policy director Russell Marsh said ESCOSA figures showed the large scale renewable energy target, which comprises wind energy, contributed less than two per cent to the average household energy bill in South Australia in 2012.
This equates to about $32 per year.
Network costs (42 per cent or $823 per year) and wholesale electricity costs (39 per cent, $760) made much larger contributions.
“The facts are that whichever state you’re in, the main driver for price rises in not renewable energy, that only plays a small part,” Mr Marsh said.
“This has been confirmed by governments and state regulators.”
Mr Marsh said wind energy had been hugely beneficial for South Australia, significantly reducing carbon emissions and creating jobs and investment in the state.
Read the whole news item at the Weekly Times.