I was unaware, until I recently listened to a forum panel on renewables broadcast by The Science Show, that wind power has really taken off in SA, where I live. Mea culpa. By August last year 27% of the state’s electricity production was from wind, and it’s now well over 30%, thanks to a new facility outside Snowtown, which came on stream in November. That’s half of Australia’s installed capacity, and it compares favourably with wind production in European countries such as Denmark (20%), Spain and Portugal (16%), Ireland (15%) and Germany (7%). It’s one of the great successes of the Mandatory Renewable Energy Target, introduced in a modest form by the conservative federal government in 2001 and expanded under the Labor government in 2009. The RET, like those in other countries, mandates that electricity retailers source a proportion of energy from renewables. South Australia’s renewable energy developers, under the longest-serving Labor government in the country, have been provided with tax incentives and a supportive regulatory framework to build wind farms throughout the state, to take advantage of the powerful Roaring Forties blowing in from the west.
The first wind turbine in SA was a small affair at Coober Pedy, but from 2004 onwards this form of energy generation has taken off here. The Snowtown wind farm mentioned above is the second in the region, and SA’s largest, with 90 turbines giving it an installed capacity of 270MW. We now have some 16 wind farms strategically located around the state, with an installed capacity of almost 1500MW. As far as I’m aware, we’re in fact the world leader in wind power – always remembering that, in population terms, we would be one of the smallest countries in the world, if we were a country.
The direct beneficiaries of these new farms are, of course, regional South Australians. An example is the 46 MW, 23-turbine Canunda wind farm near Millicent in the state’s south-east, which opened in 2005. The farm provides clean electricity generation to the region and has increased the viability of agricultural production. The facility has generated enough interest from the local community for tours to be undertaken.
Of course, one of the principle purposes of utilising renewable energy – apart from the obvious fact that it’s renewable – is the reduction of greenhouse gas emissions. And South Australia’s emissions have indeed declined in spite of increased electricity demand, due to the high penetration of wind power into the market.
This development has of course had its critics, and these are pretty well summed up on Wikipedia – linked to above:
There has been some controversy with respect to the impact of the rising share of wind power and other renewables such as solar on retail electricity prices in South Australia. A 2012 report by The Energy Users Association of Australia claimed that retail electricity prices in South Australia were then the third highest in the developed world behind Germany and Denmark, with prices likely to rise to become the most expensive in the near future. The then South Australian Opposition Leader, Isobel Redmond, linked the state’s high retail prices for electricity to the Government’s policy of promoting development of renewable energy, noting that Germany and Denmark had followed similar policies. On the other hand, it has been noted that the impact of wind power on the merit order effect, where relatively low cost wind power is purchased by retailers before higher cost sources of power, has been credited for a decline in the wholesale electricity price in South Australia. Data compiled by the Australian Energy Market Operator (AEMO) shows South Australian wholesale electricity prices are the 3rd-highest out of Australia’s five mainland states, with the 2013 South Australian Electricity Report noting that increases in prices were “largely driven by transmission and distribution network price increases”.
The issue of cost to the consumer (of energy in general) is without doubt extremely important (and complex), and I’ll try to wade into it, I hope, in another post, but for now I want to look just at the costs for wind, and whether there are any further developments in the offing.
According to this site, which is informative but perhaps not as regularly updated as it could be in such a changing energy environment, SA’s Premier last year renewed his government’s pledge to have 50% of the state’s annual power supplied by renewable energy by 2025, a very realistic target considering that, according to the same site, wind and solar were already at 38% of annual supply, as of December 2013. However he pointed out that this would be difficult if the federal government reduced its RET target, then at 41TWh by 2020. In October federal industry minister Ian Macfarlane and environment minister Greg Hunt proposed a reduction of the RET to 27TWh.
A more recent article on the Renew Economy website argues that, though the government appears to have upped the proposed figure to around 31 or 32TWh, it may be targeting large-scale wind power projects by trying to incorporate rooftop solar, which has been taken up rapidly in recent years, into the large-scale target. The initial target was 45TWh overall, with a projected rooftop solar take-up of 4TWh, leaving 41TWh for large-scale renewable energy projects. We’re currently at 7TWh for rooftop solar, and the Warburton Review expects this to double by 2020. Hints by the government ministers that the take-up of rooftop solar should be reflected in the renewed target are adding to uncertainty in the industry, which is said to be in limbo at present. It may take a change of government to resolve the situation. Meanwhile however, South Australia leads the way with wind, and if the graph on the Renew Economy website is to be believed, we’ve already passed our 50% target for renewables (though the graph appears to fluctuate from moment to moment). The graph shows that we’re currently generating 710MW from wind, 527MW from natural gas and 179MW from brown coal. That makes just on 50% from wind alone. Compare this with Victoria, a much more populous state, which generates almost as much from wind – 592MW. However, that’s only about a tenth of what it currently generates from brown coal, its principle energy source (5670MW).
A new wind farm has been approved for Stony Gap, near Burra, but there may be delays in the project due to industry uncertainty about the RET and the federal government’s plans. Energy Australia, the project’s developers say ominously: We are now re-assessing the project based on current market conditions as well as government policy and legislation.
And the cost? This is hard to gauge. As with solar, the cost of wind power has come down markedly in recent times. Basically the cost is for initial capital rather than running costs, but some argue that, because wind farms require back-up, presumably from fossil fuels, for those windless days, this should be incorporated into the cost.