Yet another study has come out, this one for Australia, concluding that all-renewable electricity is feasible while maintaining current standards for reliability. The difference here is the authors, the Australian Energy Market Operator (AEMO). These are conservative professional engineers not green activists. They prepared the report (technically still in draft) because their political masters told them to do it, not out of enthusiasm. As John Quiggin points out :
The AEMO is the body that manages the electricity market on a minute-to-minute basis, so it has the expertise to assess this claim, unlike the many amateurs who have tried their hands. And, since it might have to do the job, it has no reason to understate the difficulties of a renewables-based system.
The extra costs are significant but not absurd. Quiggin again:
Second, the estimated cost of $111 to $133 per megawatt-hour represents an increase of $60-80/MwH on current wholesale prices, or 6-8c/Kwh on retail prices. That’s much less than the increase we’ve seen thanks to the mishandling of electricity market reform.
AEMO modelled two scenarios: slow demand growth and rapid technological progress, and higher demand and slower progress. Continue Reading…