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What drives up power prices is the need to build in extra capacity to deal with the peaks of summer.. in other words, we pay year round for the knowledge that we won't face brown outs on the hottest days of the year.
We would expect that as we are reaching the hottest part of the day, we are also getting the biggest input from roof top solar panels (to balance that peak in demand), with the net effect being reduced peaks, a reduced need to build additional capacity that is only used a few days a year, and reduced costs across the year for consumers.
So what is the evidence that backs this theory?
As the Climate Spectator reported at the end of last summer (one of the hottest on record) peak demand was the lowest in 5 years, in NSW it was only the 5th highest on record, and in Victoria it was 12% below the 2009 peak.
What about internationally?
The best example is Germany who have led the world in government support for the development of solar capacity specifically, and renewables more broadly. According to an article released by the Rocky Mountains Institute, in the past 5 years Germany's wholesale electricity prices have fallen nearly 60 percent. This in turn has contributed to Germany being the economic standout in the economically troubled Eurozone.
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Removing a price on carbon will make no difference (it may do the opposite if it drives down Rooftop Solar demand). The $500 windfall is a fantasy.
Opening more coal mines (and increasing the total amount of Diesel fuel subsidies the mining industry collects), expanding Abbot Point, building more coal fired power stations will drive up costs for the government, will increase profitability for dirty energy generators, will damage the reef, and in the end will drive up power prices.
The last remaining hope non-renewable generators are holding on to is that they can perpetuate the fear that more renewables means a greater level of unreliability in power supply.
Again... what's the evidence?
Europe is the best place to look given their relatively high penetration rates for renewables. According to the Rocky Mountains Institute article (mentioned above):
In the Central European grid, where pervasive electricity trading helps operators choreograph the ever-shifting mix of renewable and nonrenewable supplies, German electricity (23 percent renewable in 2012) and Denmark (41 percent) are the most reliable in Europe—about ten times better than in the United States (whose 2012 electricity was 6.6 percent hydro and 5.3 percent other renewables). Even on the edge of the European grid, Spain (48 percent in the first half of 2013) and Portugal (70 percent) kept their lights on just fine.
Is it really any surprise that Tony Abbott is closer to his slogans than he to the reality or the evidence? Or that Greg Hunt is slavishly following orders from his boss (the Misguided One), rather than doing his job as Minister for the Environment?
Sadly not.
For some interesting reading about the advantages of having rooftop solar connected to the grid, and how it benefits us all (not just the owner), click this link.