Australian Prime Minister On Renewable Subsidies

by John McClaughry

Former Australian Prime Minster Tony Abbott gave a speech last month that got worldwide attention. He took a hard nosed look at the effect of the rush to wind and solar power on Australia’s power grid. Here are some excerpts.

“In September last year, the wind blew so hard that the wind turbines had to shut down – and the inter-connector with Victoria and its reliable coal-fired power failed too. For 24 hours, there was a state wide blackout. For nearly two million people, the lights were off, cash registers didn’t work, traffic lights went down, lifts stopped, and patients were sent home from hospitals.”

“Because the weather is unpredictable, you never really know when renewable power is going to work. Its marginal cost is low but so is its reliability.”

This echoes what Christine Hallquist of Vermont Electric Coop has been saying. Too much intermittent renewable power causes increasing problems of grid management.

Abbott continues: “A market that’s driven by subsidies rather than by economics always fails. Subsidy begets subsidy until the system collapses into absurdity. In Australia’s case, having subsidized renewables, allegedly to save the planet; we’re now faced with subsidizing coal, just to keep the lights on.”

And finally, said Abbott, “Primitive people once killed goats to appease the volcano gods. We’re more sophisticated now but are still sacrificing our industries and our living standards to the climate gods to little more effect.”

- John McClaughry is the vice president of the Ethan Allen Institute

{ 1 comment… read it below or add one }

William Hays October 30, 2017 at 2:30 am

Good news! I’m not anti-solar power, if the government keeps its dirty fingers out of it. Having solar panels on the rooves of your house/barn, or store/business is okay with me. Placing them in viable pasture/farm land is not. Government subsidies, for anything solar (manufacturing/installation) should be prohibited. Mandating that utilities take excess non-commercial solar generation, at exorbitant prices, is robbery of the other rate-payers.
Sorry. Here, in Montana, my hydro-based residential electric rate is $0.08645/kWh. I like that! Sure beats Stowe Electric rates!

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