Energy Minister Josh Frydenberg claims that renewable energy is a disruptive force in the energy market in the same way as the iPhone was to landlines and cameras. There is, however, a major difference: iPhones, like Uber, Kindle and eBay have disrupted previous commercial systems by force of technology. Renewables everywhere in the world have required government subsidies.
Electricity prices in Australia, having been perhaps the world’s lowest at the turn of the present century, are now among the highest.
This is a national catastrophe which has been forged solely by political interference. Subsidies to intermittent renewables, mainly wind and solar, have been the chief cause. Those subsidies are currently around $85 per MWh. And even if they fall to $50 per MWh, as forecast by Minister Frydenberg, this compares with the average total price of electricity, prevailing until 2015, of around $40 per MWh. That price has now doubled … Read the rest