Electricity bills are set to rise by 9.2% in the Queensland region, a report reveals that the state is paying the price for delays in renewable energy projects

Electricity prices in the regions queensland expected to jump 9.2% next year on soaring coal and gas prices, as a new report details how customers are ultimately paying the price for delays in the development of renewable energy projects in large scale.

The queensland The government, which owns most of the state’s power generators, has a target of 50% renewables, but says coal-fired plants won’t shut down sooner than planned and “will continue to play an important role.” in our electrical system.

The government announced a rebate of $175 for households to compensate for the increase in electricity prices. 2021 budget documents show state generators will soon be unable to pay dividends to taxpayers.

According to an analysis by the Queensland Conservation Council, electricity prices in regional areas would have fallen by 25% if two large wind farms currently under development – the Wambo and MacIntyre projects – had been built faster.

The report, titled Coal Power is Costing Queensland, says price rises showed that investment in such projects was needed years ago.

“Because Queensland has not invested in renewables at the same rate as other states over the past five years, we have gone from the lowest prices in 2017 to the highest electricity prices in 2022” said QCC energy strategist Clare Silcock. , said.

“South East Queenslanders may be looking for a cheaper deal, but what we really need is government planning and investing in more renewables to be built sooner.”

The report said Queensland is the most coal-dependent of any state in the national energy market and coal-fired power was becoming increasingly unreliable.

Callide Power Station in central Queensland broke down eight times in 2020before an explosion and fire in one of its generators caused widespread outages across the state.

“Other states are already seeing renewables drive prices down, while Queensland faces higher-than-ever prices and increasingly unreliable coal-fired power stations,” Silcock said.

Stephanie Gray, deputy director of Solar Citizens, said price increases were most pronounced in coal-dependent states like Queensland.

“Queensland wholesale prices are also booming because outages at coal and gas units mean we have had unexpected shortages during times of high demand,” Gray said.

“To the credit of the state government, they have announced a $175 rebate on Queenslanders’ next electricity bill, but this is a short-term solution to a long-term problem.”

The Queensland Competition Authority has published its cost determination for regional customers on Tuesday, who said the price increases — which would see a typical annual household cost increase by $119 to $1,409 — were due to increased production costs.

He said there was a “tighter supply-demand balance in Queensland” and periods of high demand had been combined with reduced generation availability. This has included record heat waves and unplanned power outages at coal and gas plants, including Callide.

The authority said production costs also rose because gas and coal prices were at record highs.

“Despite recent significant growth in renewable energy generation, gas and coal-fired power stations continue to be the last generator sent and set spot prices around 70% of the time in Queensland,” the ruling said. QCA.

“This spot pricing dynamic, coupled with higher gas and coal prices, has contributed to high spot prices and ASX contract prices, and therefore higher wholesale energy costs.”

Queensland is expected to release a major energy plan in the coming months, which is expected to outline the state’s path to generating 50% of its electricity from renewable energy sources by 2030, reducing carbon emissions by 30 % by 2030 and achieve net zero emissions. by 2050.

#Electricity #bills #set #rise #Queensland #region #report #reveals #state #paying #price #delays #renewable #energy #projects

Leave a Comment

Your email address will not be published. Required fields are marked *