The cost of living continues to skyrocket out of control.
This government is pouring fuel on the fire with its net zero policies making everything in the economy more expensive. The true scale of how crazy their plans are is apparent with some simple figures. Yet this government is ignorant to the damage they are causing.
Fix the cost of living and bring down inflation – ditch the net zero plans.
Transcript | Part 1 – Question Time
Senator ROBERTS: My question is to the Minister representing the Minister for Climate Change and Energy, Senator McAllister. For every 100 megawatts of installed coal-fired power station capacity, the production of electricity average is around 95 to 98 megawatts. For every 100 megawatts of installed solar and wind generation capacity, though, the actual production of electricity average is just 23 megawatts, with wind itself being just 21. This means that to achieve design capacity, more than four times the installed rated capacity is required—almost five times for wind. Minister, is this included in Labor’s transition costs?
Senator McAllister: Thanks very much for the question, Senator Roberts. In terms of costings, we take the advice of the experts. We’ve had this conversation more than once, in fact, in the context of estimates and in other forums. AEMO works through a range of scenarios and configurations for the National Electricity Market and makes an assessment of the optimal pathway to meet our energy requirements at the optimal cost. They do consider, of course, the capacity factors of the different options that are available to us. There’s actually quite a lot of work to do. The truth is that we inherited a mess in the energy system. When we came in, the average wholesale energy price was $286 a megawatt hour—
The PRESIDENT: Minister McAllister, please resume your seat. Senator Roberts?
Senator ROBERTS: Point of order on relevance: standing order 72(3)(c) says that answers shall be directly relevant to each question. Can we get on to whether or not Labor is aware—
The PRESIDENT: Senator Roberts, as I’ve reminded other senators in this place, make your point of order but don’t follow it up with a statement. The minister is being directly relevant to the points of your question. Minister McAllister, please continue.
Senator McAllister: Thanks, President. As I was saying, we came to government with a lot of work to do because the previous government had 22 energy policies, all of which failed. None of them landed. During the period when they were in government, four gigawatts of dispatchable capacity left the system and only one came on. We actually need to take steps to sort that out, because the previous government was repeatedly warned by the market operator that a failure to deal with the impending closure of coal-fired power stations was going to cause a reliability problem. We have sought advice from the experts at the market operator to help us design the policy settings that will actually allow us to replace that exit in capacity. It’s a lot more than anything that was ever delivered by the people opposite. The very great shame is that, for a person who I know seeks to represent people in Queensland, you show an odd lack of interest in the opportunities that come about as a consequence of making and facilitating these investments, which have the potential to bring jobs and new industry to the communities that you claim to care about.
The PRESIDENT: Senator Roberts, first supplementary?
Senator ROBERTS: During morning and evening peak hours, for every 100 megawatts of installed solar and wind generation capacity, the actual production of electricity averages just 10 megawatts. This means that achieving design capacity requires 10 times the installed rated capacity. Minister, what impact does this massive additional cost have on solar and wind installation capital costs and on electricity prices?
Senator McAllister: Senator, your question actually omits a really important part of the advice that we received from the market operator. The advice that we received—and it’s based on very significant economic modelling and engagement with a whole range of market participants and experts in the energy system—is that the optimal configuration of technology for a future grid involves renewables, firmed by storage, including batteries, and supplemented by gas. That’s the plan that has been recommended to us, and the policy settings that we’ve put in place are designed to allow investment in those kinds of technologies to be brought forward. As I indicated in my answer to your primary question, there is a problem because there was an extended period
when the lack of certainty in the policy settings of the previous government meant that the necessary investment didn’t take place, and we are taking steps to remedy that problem.
The PRESIDENT: Senator Roberts, second supplementary?
Senator ROBERTS: A modern coal-fired power station is expected to last 60 years. Solar panels and wind turbines are expected to last 12 to 15 years—at most, 20. Over the 60-year life of a coal-fired power plant, the combination of wind and solar cobbled together to replace a single coal plant will need to be replaced four times. Minister, when will Labor release its system cost of the 2050 grid system?
Senator McAllister: As the senator would know if he’d examined the Integrated System Plan, it does include a costing for the capital costs associated with building the grid out to 2050. So the answer is: it is released and updated on a regular basis by way of the Integrated System Plan. That’s the basis on which we establish our policies to deal with the transition that’s underway in the electricity system. The truth is that it is underway, Senator Roberts. I know that that is a proposition you don’t agree with, but in just two years we’ve seen a 25 per cent increase in our national grid in the cheapest and cleanest form of energy that there is, which is reliable renewables, and we’ve ticked off enough reliable renewables projects to power three million homes. Those things matter. Establishing a clear pathway for the electricity supply that’s necessary to meet the needs of households and businesses is an absolute priority for this government and should be for every other government as well.
Transcript | Part 2 – Take Note
I move:
That the Senate take note of the answer given by the Minister representing the Minister for Climate Change and Energy (Senator McAllister) to a question without notice I asked today relating to the cost of the net zero wind and solar transition.
With this so-called transition, both major parties are artificially increasing the cost of energy, pouring fuel on the inflation and cost-of-living crises. Labor and the Liberals planning to run the grid on net zero is trying to smash a square peg into a round hole.
In question time I used simple, proven facts and figures to show these plans are ridiculous. It comes down to something called ‘capacity factor’. That describes how much electricity we actually get from various types of power stations. A coal-fired power station runs at nearly a 95 per cent capacity factor or higher. That means, if we install a 100-megawatt coal-fired power station, on average, including downtime for maintenance, we get about 95 megawatts out of it over time.
Wind and solar are far lower. Their average capacity factor is just 23 per cent. That means that to replace 100 megawatts of coal-fired power we need to build 400 megawatts of wind and solar. Even if we do this massive and costly overbuild, it’s not guaranteed that wind and solar power will be available when we need it. At peak hours, morning and evening, when most people turn on devices and appliances, the capacity factor of wind and solar is just 10 per cent. We’re up for 1,000 megawatts of wind and solar to replace each 100 megawatts of coal-fired power, plus the billions of dollars in batteries and the tens of thousands of kilometres of transmission lines.
A coal-fired power station lasts 60 years—four times longer than wind and solar, which must be replaced after 15 years or so. That’s another four times the expense for solar and wind, making it a total of 4,000 megawatts to replace each 100 megawatts of coal power—40 times more expensive.
This supposed plan is not a plan; it’s lunacy. It’s costing trillions of dollars. This insanity and deceit are driving up the cost of living. Only One Nation will stop subsidising large-scale wind and solar to bring down power bills for all Australians.
Question agreed to.
