For years, net-zero campaigners have refused to admit that wind and solar cannot keep the lights on during the evening and morning peaks. Climate realists using the phrase “when the sun doesn’t shine and the wind doesn’t blow” have been mocked for years.
That ridicule has now gone down the memory hole and net-zero advocates are now acknowledging the truth of that statement by introducing a policy called “firming.” This involves the process of storing electricity generated during the day for use during peak demand in the evening and morning—exactly what I’ve been saying for 15 years.
The issue here is the cost: batteries and pumped hydro costs a fortune and batteries only last 10 to 15 years before needing replacement. There’s also an energy loss to consider—batteries lose about 10% of the energy put into them and another 10% on the way out, while pumped hydro uses more electricity to pump water uphill than it generates on the way down.
I asked the Minister about the cost of “firming,” and her answer was quite embarrassing — she didn’t know. It’s likely to exceed $100 billion.
Transcript | Question Time
Senator ROBERTS: My question is to the Minister representing the Minister for Climate Change and Energy, Senator McAllister. Minister, during evening and morning peak hours, electricity generation from industrial solar and wind averages just 10 per cent of rated capacity, because solar doesn’t work in the dark, and wind goes quiet at night. Big batteries can transfer electricity from daytime to the evening peak. Minister, how much battery capacity is your government planning to build to maintain electricity supply between sunset and sunrise?
Senator McAllister: I thank Senator Roberts for the question. The senator is right to point to the fact that Australia’s electricity system is changing. We have, as I think most senators understand, a fleet of ageing coal-fired power stations that require replacement. I can tell you: they are not getting any more reliable. In fact, over the last year, I don’t think there’s been a day when we haven’t had a circumstance where at least one of the coal-fired power generators in the national electricity market has been offline for one kind of maintenance or another. Of course, this arises because we went through nearly a decade when the coalition, while in government, did not land an energy policy. They had 22 policies; none of them landed. Our task as government—
The PRESIDENT: Minister McAllister, please resume your seat. Senator Roberts?
Senator ROBERTS: I have a point of order. Standing order 70 (3) (c) says, ‘Answers shall be directly relevant to each question.’ I asked about how much battery capacity your government is planning to build to maintain electricity supply between sunset and sunrise.
The PRESIDENT: I will draw the minister to your question.
Senator McAllister: Of course, our task is actually to restore some measure of order to the energy system so that the investors who build the generation capacity that is necessary to power homes and businesses have the confidence to invest. And that is what the Capacity Investment Scheme has been designed to do. We have just been through a round of the Capacity Investment Scheme where we received very significant commitment to underwriting very significant battery capacity. We do understand the significance of this technology. What the experts tell us is the most cost-effective way to establish a national energy market that can meet the energy requirements of Australian homes and businesses is a combination of wind, of solar, of batteries and of gas, and that is the policy setting that we— (Time expired)
Senator ROBERTS: Minister, you couldn’t tell me the battery capacity your government is planning to build, so you may not be able to answer this question. But let’s just say ‘yes’ or ‘no’, please. What is the capital cost of that battery backup, and how much of that bill will taxpayers pay? Simple.
The PRESIDENT: I will just wait for silence, particularly on my left. This is Senator Roberts’s question.
Senator McAllister: As I have indicated previously to questions asked by Senator Roberts in this chamber, the cost of the transition is regularly estimated out to 2050 by AEMO, and it is included in the Integrated System Plan, which is regularly published and updated. Different states have different arrangements in terms of the ownership and investment in generation, and so the investment that will take place will look different depending on the ownership arrangements that are in place across the national electricity market. However, we understand that there is a measure of support required from the Commonwealth government, and it is why we have put in place the Capacity Investment Scheme which aims to provide support for those who are seeking to invest in new capacity, whether it is in batteries or other forms of generation in the national electricity market.
The PRESIDENT: Senator Roberts, second supplementary?
Senator ROBERTS: So the minister cannot tell us the battery capacity required, nor the capital cost of that battery backup. So, Minister, AEMO is working off a figure of 60 gigawatt hours of storage at around $1 billion an hour, which is $60 billion. How much will electricity prices and supermarket prices rise as a result of having to spend that staggering amount of money?
Senator McAllister: Well, the one thing I can say is that we will take advice from the experts about the optimal investment that’s necessary to build out the national electricity market. It’s a different approach to the one taken by those opposite, because right now we have a coalition government whose plan is to invest taxpayers’ money in the most expensive form—
The PRESIDENT: Minister, please resume your seat.
Senator McKenzie: You can’t tell us how expensive yours will be!
The PRESIDENT: I’m waiting, Senator McKenzie! Senator Roberts.
Senator ROBERTS: A point of order on relevance. I didn’t ask about the coalition government, as you said. I asked about the Labor government now.
The PRESIDENT: I will draw the minister to your question, Senator Roberts. And while I have the attention of the chamber, I will ask senators, particularly those on my left, to listen in respectful silence. Minister McAllister.
Senator Thorpe: You lefties need to listen!
The PRESIDENT: Senator Thorpe, that includes you! Order! Minister, please continue.
Senator McAllister: Thanks very much, President. The senator asked about our plans. The Capacity Investment Scheme will deliver 32 gigawatts of renewable and clean dispatchable capacity to fill emerging
reliability gaps. The truth is that will put downward pressure on prices, because one of the consequences of the failed policies of those opposite is that we do have capacity capabilities that need to be filled because energy capacity is leaving the market and it has not been replaced. We are taking steps necessary to replace it. (Time expired)
Transcript | Take Note of Questions
I move:
That the Senate take note of the answer from the Minister representing the Minister for Climate Change and Energy, Senator McAllister, to a question without notice I asked today relating to energy.
My question was quite simple: how much is the government’s net zero policy going to cost just for firming? Firming is the provision of what used to be called stable, synchronised baseload power to keep the lights on when the wind isn’t blowing and the sun isn’t shining. Firming wasn’t needed when we had coal power because coal plants provide stable, synchronised baseload power day and night. Solar and wind don’t.
AEMO estimates Australia will need 65 gigawatt hours of firming to guarantee grid stability. Depending on the time of year, that storage will need to be refilled each day to get the grid through the next night, including most of the evening and morning peak hours. Australia’s energy consumption in 2023-24 shows that, in summer, for the morning peak hours we needed 36 gigawatt hours of power and for the evening peak hours 28 gigawatt hours. So AEMO’s figure of 65 gigawatt hours of firming is about right. The $64 billion expense—billion dollar expense—will be added to every Australian’s power bill, or it will go onto your taxes. Either way, under the Albanese government you will pay.
The $64 billion cost is just for one night. These batteries need to be refilled the next day with power from the grid. That means that every day we need a huge amount of solar and wind just to charge the batteries. One wet day preventing large-scale generation from solar and wind means the batteries will not be recharged, resulting in blackouts and energy management that I’ll discuss tomorrow. It’s clear that 65 gigawatts of capacity at $64 billion is not enough to avoid blackouts. We’ll probably need twice that, as well as having to build extra solar and wind just to charge the batteries.
Everyday Australians are up for hundreds of billions of dollars just for firming. That’s in addition to the electricity needed on any day. This is an insane impost on every Australian struggling with paying for their groceries and insurance and with the cost of living under Labor. End the net zero mandates now.
Question agreed to.
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