Scott Morrison has announced if the private sector will not build a gas fired power station then the government will via the Snowy Hydro. He is worried that the closing of Liddell power will leave a void such as occurred with the closing of Hazelwood.
One big problem. AEMO said there was not a problem. Indeed AGL said they would replace the power with wind, gas, battery etc.
It does not work addressing the energy trilemma.
Let us go back to basics.
If gas power is the answer then why has not the private sector into it in a big way?
The reason is solar and wind power are vastly cheaper. It is useful on the margins but that is all. Not as expensive as coal fired power stations and not as unreliable as them either.
So in this case the government knows more than the market.
Also Snowy Hydro is a wholesale producer. If this power station went ahead it would be a high cost producer. That means it would only sell electricity if there was no other electricity. In other words it would be a very costly white elephant.
what happens when we have so much renewable power we can export it.
Stupid is as stupid does!
update:
Simon Holmes A Court
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