Renewables are politically appealing, they promise climate progress and will, eventually, lower costs.
Won’t they?
Well, we only have to look at Europe to discern the truth, or not, of that statement.
Over nearly 2 decades Europe has built a formidable renewable energy generation base. To the extent that roughly 50% of its electricity is now generated by renewable sources and coal has largely been pushed aside and nuclear is following!
However, along the way, the push for renewable energy has contributed to higher electricity prices in many countries across the continent. Germany now has the highest household electricity prices among advanced economies, and the United Kingdom has the highest industrial power tariffs.
Average electricity prices for heavy industry in the European Union are nearly twice as high as in the United States and are 50% higher than in China.
What Europe is having to manage is greater volatility in energy pricing as the share of renewable generation has increased!
Surely, this then begs the question; “Why is New Zealand vigorously pursuing the expansion of wind and solar farms?”
“The most expensive electricity on Earth is in countries with “cheapest” sources of electricity” was a statement made by Australian commentator Jo Nova in 2024.
Nova a former TV host turned prominent climate change sceptic is best known for The Skeptics Handbook. Her self-published work challenges the scientific consensus, arguing against the impact of greenhouse gases and claiming that additional CO2 has a negligible effect on global temperatures.
Her rejection of mainstream climate “science”, especially around the link between CO2 and rising temperatures is a stance that has made her a polarizing figure in the global climate debate.
Google Jo Nova and you will find a plethora of posts on Nova, all applying words such as “falsely claiming” “falsehoods” “promotes the myth” etc.
A group called Skeptical Science whose “mission” is to “Explain climate change science & rebut global warming misinformation” have even download a pdf file titled – A Scientific Guide to the “Skeptics Handbook.” This “guide” is at pains to inform you that “There multiple lines of evidence, all pointing to the same answer, humans are causing global warming!”
Wow, how is that for a prejudicial statement!
So, why is it that, world wide, there are reports on how renewable energy remains more expensive for consumers?
What readers need to be aware of is these reports are often overloaded and overshadowed by misinformation. Misinformation that ratifies the reasons lie not in the cost of producing clean energy, but in how electricity markets are structured, the physical realities of energy grid systems designed for transmitting electricity generated by thermal power stations.
So many reports fail to cite the fact that renewables are unable to produce power when it is most needed.
The huge problem with renewables is the intermittency of generation!
Solar panels become redundant immediately the sun sets, turbines exactly the same when the wind isn’t blowing! These significant deficiencies are well known but so often glossed over, and in some cases, completely ignored!
Couple that with the requirement for massive investment in battery storage to manage the intermittency of generation. Battery storage that is large, expensive and unreliable to manage intermittency very quickly begins to ramp up costs!
However, along the way, the push for renewable energy has contributed to higher electricity prices in many countries across the continent. Germany now has the highest household electricity prices among advanced economies, and the United Kingdom has the highest industrial power tariffs.
Average electricity prices for heavy industry in the European Union are nearly twice as high as in the United States and are 50% higher than in China.
What Europe is having to manage is greater volatility in energy pricing as the share of renewable generation has increased!
Surely, this then begs the question; “Why is New Zealand vigorously pursuing the expansion of wind and solar farms?”
“The most expensive electricity on Earth is in countries with “cheapest” sources of electricity” was a statement made by Australian commentator Jo Nova in 2024.
Nova a former TV host turned prominent climate change sceptic is best known for The Skeptics Handbook. Her self-published work challenges the scientific consensus, arguing against the impact of greenhouse gases and claiming that additional CO2 has a negligible effect on global temperatures.
Her rejection of mainstream climate “science”, especially around the link between CO2 and rising temperatures is a stance that has made her a polarizing figure in the global climate debate.
Google Jo Nova and you will find a plethora of posts on Nova, all applying words such as “falsely claiming” “falsehoods” “promotes the myth” etc.
A group called Skeptical Science whose “mission” is to “Explain climate change science & rebut global warming misinformation” have even download a pdf file titled – A Scientific Guide to the “Skeptics Handbook.” This “guide” is at pains to inform you that “There multiple lines of evidence, all pointing to the same answer, humans are causing global warming!”
Wow, how is that for a prejudicial statement!
So, why is it that, world wide, there are reports on how renewable energy remains more expensive for consumers?
What readers need to be aware of is these reports are often overloaded and overshadowed by misinformation. Misinformation that ratifies the reasons lie not in the cost of producing clean energy, but in how electricity markets are structured, the physical realities of energy grid systems designed for transmitting electricity generated by thermal power stations.
So many reports fail to cite the fact that renewables are unable to produce power when it is most needed.
The huge problem with renewables is the intermittency of generation!
Solar panels become redundant immediately the sun sets, turbines exactly the same when the wind isn’t blowing! These significant deficiencies are well known but so often glossed over, and in some cases, completely ignored!
Couple that with the requirement for massive investment in battery storage to manage the intermittency of generation. Battery storage that is large, expensive and unreliable to manage intermittency very quickly begins to ramp up costs!
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Are these well known shortcomings in renewable energy being disregarded and marginalised?
Because today in New Zealand we are informed that Stewart Island, following Shane Jones energetic promotion in his role as Regional Development Minister, are the recipients of a $15.35 million Regional Infrastructure Fund Suspensory Loan (A loan that that may not need to be repaid if certain conditions are met) to move Stewart Island toward a greater reliance on renewable energy.
The proposed infrastructure project aims to significantly reduce Stewart Island’s dependence on expensive diesel fuel through the implementation of renewable energy solutions. This major development involves the installation of a solar farm and battery storage facility, with an operational commencement date set for early 2027.
Once commissioned, this project will enhance energy security while substantially lowering long-term electricity costs for local residents and businesses!
Mmm, will it?
I submit it is unusual that there are no figures being quoted on what percentage of the islands total energy needs will be met, only that it is to reduce the island’s reliance on diesel-generated electricity by up to 75%.
Jones emphasized that the investment would facilitate economic growth on the island, benefiting tourism and commercial fishing. The Stewart Island project is part of a grander, $28.1 million, investment in three regional solar projects promoted by Minister Jones to increase investment in regional infrastructure that will boost economic prosperity and cut reliance on, now, very expensive diesel.
So, let’s compare Stewart Islands new venture with Coober Pedy in Australia where they also had an amazing energy project, also built with the lofty goal of reducing dependence on diesel and its associated costs.
Coober Pedy is a town in the South Australian desert, built around opal mining, with a population of about 1,600 people (Stewart Island recorded 486 in the 2023 census). Coober Pedy first tried to build a big solar system in 2009 for $7 million but it didn’t get off the ground. Then in 2014 they tried again, but this ended up costing about $40 million in capital costs, and the total project ballooned out into what is predicted to be a 20 year, AU$192million dollar fiasco!
Of course, the comment was made – “…they could have given every man, woman and child $120,000 to buy their own generators…”
The project was forecast to save the Government AU$5.4 million in diesel generation costs over a 20-year-period.
But hold on; It turns out the government spent $100 million in subsidies just to save AU$5.4 million in fuel costs over two decades! The project was meant to be a win for all parties, but the maths just didn’t add up.
Was there any upside? Well, I suppose Coober Pedy now knows a renewables grid doesn’t meet its energy needs and just wasn’t worth the effort.
The downside? They wasted hundreds of millions of dollars finding that out!
Do you think any lessons will be learnt by the government?
But there is one more twist in the tail!
If renewables were going to be successful anywhere, you would expect it would be in a place like Coober Pedy. A small desert community, wide open spaces, lots of sun, and new renewables only have to compete with expensive diesel generators, not cheap coal.
Fans of renewables were partying recently because Coober Pedy had managed to run for “nearly five days” on renewables. Nearly five!?
You might think this was a new set up, but this is a system that was built in 2017. Basically, the people of Coober Pedy have been waiting for nine long years to get this lucky with the weather!
And the previous record they set with this equipment was in 2019!
This just demonstrates the true cost of renewable energy extends far beyond the initial installation of solar panels or turbines. Wind power, in particular, is prohibitively expensive because its intermittent nature requires a secondary energy source to remain online at all times.
The overseas experience is that to maintain grid reliability, new wind farms are frequently paired with natural gas “peak demand” plants to provide the crucial grid stability and fill gaps created by intermittent generation. These back up generators function as an expensive, redundant layer that consumers must fund on top of the traditional infrastructure required to keep the lights on during low-generation periods!
Maybe all of the above explains why China enjoys the world’s lowest power prices, thanks to cheap, abundant and reliable coal-fired power. Adding to their advantage, China is building dozens of new coal-fired and nuclear powered plants.
It’s almost as if they know something, something we have chosen to ignore, about the economic benefits of having affordable and reliable power, around-the-clock!
Pee Kay writes he is from a generation where common sense, standards, integrity and honesty are fundamental attributes. This article was first published HERE
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