ENERGY STORAGE THE REAL ISSUE
The Australian Energy Market Operator (AEMO) has suggested more renewables will drive down the price of power.
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In daylight hours this is probably true, but energy storage is the real issue and this will not be easily overcome.
Battery storage is prohibitively costly to install at the scale required to meet overnight demand despite the many proposals.
Pumped storage is already a reality with installations at Tumut, Shoalhaven and Wivenhoe.
These have been operating for some time. Previously they recharged the top reservoir overnight, using off-peak rates from coal fired power stations.
Only two others are in the course of construction; Snowy 2 and Kidston in Queensland.
The eastern Australian landscape lacks mountain areas with the result only 20 possible new sites for pumped storage have been identified and given the current environmental hurdles it is probable few will come to fruition.
Batteries, pumped hydro, connection with Tasmania hydro, intrastate and interstate grid connectors all come at a substantial cost changing renewables from low cost to substantial.
At this point gas turbines stand out as the most practical outcome to avoid overnight or cloudy day power shortfall. Even gas requires pipelines and storage facilities.
Gas is an anathema to the Greens and other activists, but I don't think they realise it is essential for making urea.
'Green hydrogen' can make ammonia, but carbon dioxide (from gas) is required for urea production.
Without urea world starvation would substantially increase. Look what happened to Sri Lanka when the government stopped importing urea!
Ted Burns, Eleebana, NSW
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PUT DOMESTIC GAS SUPPLY FIRST
Domestic gas prices have risen because of the international spot price achievable by our liquid natural gas producers - profiteering.
Many have contracts with established prices set years ago.
Our last LNP government refused to legislate a requirement to allocate a percentage of production to domestic use, as has occurred in WA.
We are told that the amount of LNG being sold on the spot market exceeds our domestic need.
The ALP government, by legislation, ought to secure an adequate amount reserved for domestic use based on the average cost of production.
The government has two options: one is to apply a super profits tax (or a temporary royalty) and use it to reduce the domestic price; the other is to allocate sufficient non-contract gas to meet domestic needs.
There may need to be some compensation for high cost producers or those disproportionally affected.
This would make the domestic reservation of LNG available at a reasonable domestic price and permit contract quantities to be supplied.
Gas is an Australian core asset with a priority for domestic use.
Geoff Henkel, Farrer, ACT
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