Essay by Eric Worrall
Victorian Premier Dan Andrews has resurrected the state electrical energy fee, to develop renewable alternatives and facilitate a phaseout of coal by 2035.
‘Shocked’: Andrews nationalises electrical energy
Angela Macdonald-Smith, Patrick Durkin and Colin Packham
Oct 20, 2022 – 11.12amVictorian Premier Daniel Andrews’ plan to “carry again” the government-owned State Electrical energy Fee to reverse the decades-long privatisation of Australia’s power market will chill personal funding and harm odd traders and employees, the CEOs of Woodside Power, Alinta Power and Australian Power Council warn.
The state Labor authorities stated it might spend $1 billion to develop its personal renewable power property, because it introduced powerful new emissions targets which might be more likely to finish coal energy technology within the state by 2035 – sooner than anticipated. The state would make investments immediately to regulate renewable power initiatives, together with wind and photo voltaic, with a spotlight anticipated to be on its formidable offshore wind targets.
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The premier stated that the revived State Electrical energy Fee (SEC) would “think about all choices” together with turning into a state-run power retailer and would have a controlling stake in new power initiatives “with the steadiness of funding invested by means of like-minded firms corresponding to business tremendous funds who’re targeted on an equitable future for Victorians”.
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The brand new targets have been welcomed by environmentalists and unions however Jeff Dimery, CEO of Alinta Power which owns the Loy Yang B coal energy station in Victoria’s La Trobe Valley, which was scheduled to shut in 2047, stated the transfer would power the early retirement of its coal energy station and value jobs, leaving his workers “shocked”.
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Learn extra (paywalled): https://www.afr.com/firms/power/victoria-to-bring-back-state-ownership-of-energy-20221020-p5brci
Dan Andrews is the premier who infamously ordered police to open hearth on unarmed protestors in 2021 throughout a Covid lockdown protest.
The renewable power goal is absurd – Victoria is windy however doesn’t see numerous solar. The wind isn’t that dependable – Victoria usually enjoys durations of days and even weeks with little or no wind, always of the 12 months.
So the query is, why did Dan Andrews really feel he needed to intervene with direct state funding? Is that this only a political stunt, to appease unions? Or is he having hassle attracting the extent of personal funding he desires?
On the floor renewable funding seems to be good – round $860 million spent final monetary 12 months in Victoria. However that’s nowhere close to sufficient to realize Victoria’s formidable renewable targets.
Dan Andrews is dealing with election on twenty sixth November, so this might simply be a stunt, a ploy to agency up help from union employees who miss the previous days, when state authorities power enterprises run by managers appointed by union supported politicians granted straightforward pay rises to public sector employees.
Or it might imply one thing else. On this interval of rising rates of interest, and a possible imminent recession, individuals get much more cautious of placing cash into new enterprise ventures. And renewable power tariffs should not resistant to authorities tinkering when governments run wanting cash, as Spanish traders found in 2010. Victorians have already had a style of arbitrary authorities tariff tinkering, with a major lower to rooftop photo voltaic feedin tariffs again in July.
I suppose time will inform.
Correction (EW): h/t Excessive Treason – The election is twenty sixth November, not 2nd November.
