Victoria’s plan to inject $1 billion into new renewable energy projects will do little to ease wholesale power prices in the short-term, industry experts say, though it will aid the development of new renewable energy projects.
Electricity prices have surged this year and are expected to rise strongly again next year amid a global energy crunch that has pushed up the price of coal – the primary source of electricity in Australia.Under Australia’s market rules, the cost of electricity is determined by the highest price of electricity dispatched – a system that was supposed to incentivise new generation.
While $1 billion is unlikely to be sufficient to depress wholesale power prices, developers say it will aid efforts to see new projects materialise.“Having all levels of government on the same page is critical to drive the quick decisions and real action needed to get offshore wind up and running,” said Star of the South CEO Charles Rattray.Many are still to reach financial close, but developers said an injection of state funds could accelerate their development.
Utilities should never ever be privatised History has shown again and again that having private sector ownerships means higher prices and lower service. Eg aged care, electricity, public transport, health care and internet/phone.
Energysecurity first F$$$ the money
State owned utilities just mean higher taxes.
In our state sponsored capitalist economy its always a far better investment for the tax payer to keep assets publicly owned rather than gift them to failed private industry at inflated costs.
It will cost more especially if supper funds are involved. They love monopoly infrastructure. The last thing super funds would want is competition
Financial Review - the biggest servant of our billionaire energy oligarches
Victoria the energy shortage state