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The Costs and Risks of Australia’s Largest Solar Project: Sun Cable

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This is another of my ongoing questions into understanding the cost of net zero. The Sun Cable project is an insane proposal to cover 12,000 hectares of the Northern Territory with solar panels, at a cost of over $30 billion. There are multiple problems with this project, including environmental damage, power loss during transmission and site remediation once the panels reach the end of life.

These large energy companies are not required to, and don’t set aside funds for remediation. This means Australian taxpayers will end up footing the bill for billions of dollars in cleanup costs when this project inevitably fails.

Despite this being the world’s largest solar project and carrying significant sovereign risk, the Minister had no clue what I was talking about.

Transcript

Senator ROBERTS: My question is to the Minister representing the Minister for Climate Change and Energy, Senator McAllister, and it’s regarding the SunCable industrial solar project in the Northern Territory. Minister, please advise the Senate of the total value of guarantees and, as a separate figure, the total value of subsidies available to the project. 

Senator McAllister: I am aware that the Minister for the Environment and Water has recently provided approval for the SunCable project. This is a project that, as I understand it, seeks to establish renewable generation capability in the Northern Territory and also significant transmission capability, which will allow that generation to be used within the Australian grid but potentially also to be exported to our Singaporean neighbours. This is potentially an extremely important project. It is also one that is first of kind in the Australian context— 

Senator ROBERTS: I have a point of order, under standing order 72(3)(c): ‘Answers shall be directly relevant to each question.’ I asked about the total value of guarantees and the total value of subsidies. What are they? If you don’t know, please just say so. 

The President: I will draw the minister to that part of your question, Senator Roberts. 

Senator McAllister: The senator asks me to comment, I think, on policies that exist in the Australian context to support the rollout of reliable renewables, and of course— 

The President: Minister McAllister, please resume your seat. Senator Roberts, on a point of order? 

Senator ROBERTS: I asked about the total value of guarantees and the total value of subsidies. That’s it. 

The President: Senator Roberts, the minister barely said seven words, so let’s just hear the answer. I have reminded the minister of the question, and I will continue to listen carefully. 

Senator McAllister: The Australian government takes our advice about the future of the energy system from experts, and all of the advice that has been provided to us is that the most cost-effective form of new generation to replace the older, ageing assets that are shortly to retire is reliable renewables. 

Senator CASH: He just wanted to know what the figure is. 

The President: Order! Senator Cash, this is not your question. 

Senator McAllister: We take our advice from experts because we believe that Australians deserve the most cost-effective form of energy that is available to us. We can’t actually go back to doing things the way that they were done under the previous government. 

The President: Minister McAllister, please resume your seat. Senator Roberts, on a point of order? 

Senator ROBERTS: I remind the minister that I asked about the total value of guarantees and the total value of subsidies. 

The President: I have reminded the minister of the question, and I will remind her again, Senator Roberts. 

Senator HENDERSON: It’s okay to say you can take it on notice. 

The President: Order! Thank you, Senator Henderson. 

Senator McAllister: My advice is that this project has been— (Time expired) 

The President: Senator Roberts, first supplementary? 

Senator ROBERTS: The project proposes to generate electricity in the Northern Territory and send it to Singapore using a 4,300-kilometre-long cable, mostly undersea. This is five times longer than Norway’s 760-kilometre Viking Link, the current longest cable. Viking Link loses 3.5 per cent of its generation through transmission loss. What percentage of the project’s Australian generated electricity will be lost in transmission to Singapore? 

Senator McAllister: The senator asks about, essentially, the economics of the project that has been approved, and what I can advise the senator is that this is a matter for the project proponent. The government’s role is not to assess the economics of this project. The minister has made a decision in relation to its environmental approvals. This is part of a broader transformation of the Australian economy. We are blessed with abundant sunshine, wind and land, with skilful engineers and skilful personnel, with a mature commercial and legal environment and with a natural electricity system that many other countries seek to talk to us about because of its strengths. These are strengths for Australian communities. They are strengths for Australian regions and they are potentially a source of significant economic opportunity for Australians living in regional communities. (Time expired) 

The President: Senator Roberts, second supplementary? 

Senator ROBERTS: The minister can’t or won’t tell me about guarantees and subsidies nor a core project assumption, so, Minister, my second supplementary question is: how much is SunCable lodging as a rehabilitation bond for the 12,400 hectares of land that will be covered in solar panels? 

Senator McAllister: The senator asks about the terms on which the approval for the SunCable project has been provided. I can tell the senator that Minister Plibersek applies the terms of the Environment Protection and Biodiversity Conservation Act to all of the matters that come before her. This is a project proposal that intends to establish a significant source of new generation in the Northern Territory, as you indicated in your first supplementary question. 

The President: Senator Roberts, on a point of order? 

Senator ROBERTS: Minister, is there a rehabilitation bond in place to cover the desecration of the environment? 

The President: Senator Roberts, it’s your responsibility to seek a point of order, not to re-ask your question. If you have a point of order, I invite you to make it. If you don’t, I’ll ask the minister to continue. 

Senator ROBERTS: President, the point of order is one of relevance. 

The President: I believe the minister is being relevant. She has outlined to you the approval processes. So I will ask her to continue. 

Senator CASH interjecting— 

The President: Order! Order! Senator Cash, which bit of ‘order’ doesn’t apply to you? Minister McAllister, please continue. 

Senator McAllister: The minister’s responsibility, of course, is to apply the law when a project is put before her. Since coming to government we have sought to do so in relation to all of the projects before us, but we are pleased to see new renewable projects coming online. Since coming to government, we have given the green light to more than 55 of those under the

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Wind and Solar Investors Cut and Run

Major investors are deserting wind and solar installations, walking away and writing off billions of dollars, as their share prices plummet. The ‘Green Dream’ is morphing into a nightmare of failure and financial loss.

What’s more, electric vehicles are losing value at twice the rate of petrol and diesel, while insurance policies rise at twice the rate. Hertz is hurting over the money it’s losing on its EV fleet and Australia’s Drive magazine writes that more EV sales will actually increase demand for coal, because solar and wind generation is not up to the job of charging these batteries.

Environmental, Social and Governance (ESG) corporate blackmail is hitting resistance. Even Vanguard pulled out of the Net Zero Asset Managers Initiative, citing risk and poor returns.

ESG initiatives rely on government handouts and because of that, our economy is being destroyed for a virtue-signalling initiative that is falling apart before our eyes.

We cannot ignore the signs – it’s time we followed in the investors’ footsteps, cut our losses and start putting Australians first.

Transcript

Madam Acting Deputy President, as a servant to the many different people in our one Queensland community, my second topic tonight is solar and wind energy’s financial failure. The tide is now against out-of-touch elitists whose income insulates them from the hardship their virtue-signalling, feelings based beliefs cause Australians. The recent referendum showed that the good sense of everyday Australians will shine through. Recent polling shows working Australians deserting the Albanese government over the cost of living, housing and immigration—crises due to virtue-signalling, feelings based urban elitist policies. 

Look at disasters in recent months engulfing the green dream. Orsted, the huge offshore wind charlatan, booked a US$5.5 billion writedown on the value of its offshore wind installations, and the stock price this year is down 50 per cent. Last week, Norway’s Equinor booked a $300 million writedown on its offshore wind portfolio. Its share price, though, was saved due to its investment in oil and gas. Siemens Energy is down 60 per cent after losses in offshore wind caused a return on investment of minus 17 per cent—negative. Vestas is down a third after announcing losses in its wind division and is now offering a return to investors of minus 11 per cent. This is from the Australian Financial Review: 

The Andrew Forrest-led Fortescue terminated approval applications for the Uaroo Renewable Energy Hub last month. 

The Daily Express reports that electric vehicles lose value for owners at twice the rate of internal combustion engines. Insurance policies are rising at twice the rate because of EVs’ rising maintenance costs. In America, Hertz announced it is losing money on its EV fleet, and it’s now scaling down purchases. The American Automobile Association tested EVs and found that, with a family of four and their gear on board, the highway cycle range of a family EV was reduced by 25 per cent, whereas petrol cars actually get greater range. American EV dealers now have a hundred days of stock sitting in showrooms. Business Insider reports that EVs have hit a market share plateau. There are only so many rich public servants ready to waste money on virtue-signalling vehicles suited to short city trips. The share price of the United Kingdom’s EV company Arrivals has fallen 96 per cent. Drive magazine says more Australian EV sales will actually increase demand for coal, since solar and wind generation is insufficient to charge these things. 

Recent large demonstrations against offshore wind should have caused Minister Bowen to take stock, yet he’s now full steam ahead and damn the torpedoes. Ignorance never ends well. Sydney’s inner-city elites will not have to look at these monstrosities, because the Labor Party are installing huge wind turbines off the workers’ suburbs in Newcastle and Wollongong. 

And the ESG corporate blackmail is hitting resistance. In the last week, United Kingdom investors withdrew $1 billion from ESG funds, making it five months in a row of negative inflows. Last year a paper showed that ESG funds do not offer superior returns to those of regular investment funds, which is why Vanguard pulled out of the Net Zero Asset Managers Initiative last December due to poor returns and risk. Last July, the Australian newspaper said: 

“Green” investing has hit a crisis. Mounting questions over standards and effectiveness have been building for years. This year, investors voted with their feet and rushed for the exits. 

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Whatever way you cut it ESG is a thematic – in creating exclusions it means investors will have more volatile returns than a fund that simply invests for the best return. 

Large corporates, superannuation firms and investment funds have a fiduciary duty to investors to operate for the best and safest returns. ESG is not safe and not profitable. ESG initiatives rely on government handouts. 

Our economy is being destroyed. The urban elites’ wealth and income can only last so long before feeling the pain they’re now inflicting on everyday Australians. The green dream ends when the government stops propping it up with taypayers’ money, the green dream nightmare ends when the government stops propping it up with taxpayers’ money. 

Make the decision today to start putting everyday Australians first. We have one flag; we are one community; we are one nation. 

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Government admits power grid is critical after influx of renewable energy

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My motion successfully carried today in the Senate.The government has admitted they know that our energy grid is at a critical status because of the influx of renewable energy into the system. Despite this, they continue to chase stupid green-left policies for solar and wind that will destroy the country without reliable, coal fired power.

Motion: The Senate-

  1. notes that:
    1. the Energy Security Board stated in January 2021 that the system security of the power grid is at a critical status after the influx of renewable energy into the system,
    2. in February:
      1. the River Thames froze for the first time in over 50 years,
      2. hundreds of United States cities recorded their coldest temperatures in decades,
      3. wind turbines in Texas froze solid, and
      4. solar panels in Germany were blanketed in snow,
    3. naturally variable weather events place serious strain on power grids,
    4. relying on weather-dependent power generation to save us from weather events is a recipe for power failure, and
    5. reliable baseload power is essential to provide safety and security for Australians; and
  2. calls on the Government to urgently commence the construction of reliable, baseload power generation.

https://parlwork.aph.gov.au/motions/825f4de4-5172-eb11-b861-005056b55c61

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