.@AngusTaylorMP so confused in his messaging on Liddell closure this morning on #rndrive
When confronted on the fact he wants 1000 MW of gas to replace a shortfall of 150 MW, he pivoted to 'it's all about price'
1/x
@AngusTaylorMP Angus: you need a plant that will run 24/7 365 days a year
Fran: but it won't run all that time
Angus: but it *can* run 24/7 365 days a year
So actually, it's reliability he's talking about
2/x
@AngusTaylorMP But to get that oversupply of reliability, you get higher prices...
ie every time a gas plant runs, the wholesale price goes up to match the cost of running the dearest generator - the gas plant.
The more you run the gas, the higher your electricity price
3/x
@AngusTaylorMP The reality of course (because the reality seldom breaks into these ministerial monologues) is that there is 700 MW of new wind being built in NSW right now. No doubt pleny of solar as well.
They will supply most of Liddell's lost capacity, most of the time.
4/x
@AngusTaylorMP that is actually good news for prices because their marginal cost is low, much lower in fact than Liddell.
If the feds could just stop butting into the market, AGL could roll out its NSW battery plans.
There will be no need for 100 MW, let alone 1000 MW, of new gas
5/x
@AngusTaylorMP And then consider the sucker who's going to build this mythical gas plant...
They're going to want to run it as much as they can while they're still allowed to (ie before carbon pricing gets them).
Ergo higher prices.
6/x
@AngusTaylorMP But the giveaway line was when Angus returned to Tomago aluminium smelter.
"If Tomago goes off for 3 hours it will never open up again"
So that's actually the point right?
He's happy to drive up prices to get in some kind of fossil fuel last hurrah.
7/x
@AngusTaylorMP But smothered with a paper-thin veneer of concern for prices.
Oh, how I long for coherent energy policy.
Announce a timetable to close coal. Work with local communities to help them transition. Get cracking.
Fin.
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