Everyone knows the sad story about the farmer who decided to save some money by reducing the ration of oats for his horse. He started with a reduction of 10% and it didn’t seem to matter so he cut another 10% and then another. He was saving money hand over fist but then the animal unfortunately died.
Over the last decade or three the nations of the western world started to reduce the amount of fossil fuel “oats” in their power “rations.” In Australia the process started in 2012 with the closure of Munmorah in NSW (600MW), Swanbank, Q, 500 and Collinsville Q 180. Major closures since then were Wallerawang (1000) in NSW, Northern (546) and Playford (240) in SA and finally in 2017, the biggest of all, Hazelwood in Victoria(1760.)
That took 7600 MW out of the total of 30,500, a 25% reduction. This year the phased closure of Liddell in NSW started with one of the four 500MW turbines going out of service, with the process to be complete in April 2023. In recent months a combination of planned (maintenance) outages and unplanned outages combined with issues in the supply of gas caused major price increases and alarm about the stability of the system.
The horse died when the ration of oats slipped below a sustainable level. How many more oats (coal power capacity) need to be taken out of the system to kill it? Practically everyone who has an opinion insists that the closure of coal stations has to be accelerated, or at least the expansion of wind and solar power, storage capacity and major interconnections has to be ramped up with all possible dispatch. That cannot work, as described below.
Now in Europe we can see what happens when you go too far, apparently it happens very quickly when you get to the tipping point.
Trigger warning, this material is likely to be distressing if you manage to conjure up a feeling for the desperation and desolation in a Britain where 60% of their manufacturing could be about to collapse, while household bills for many people are likely to exceed their disposable income.
Meantime, the same forces are de-industrializing Europe right before our eyes. Industry after industry is throttling back, shutting down, or considering doing so if the energy chaos continues. Britain is staring at the potential shutdown of 60 percent of its manufacturers. Germany and most of Europe are on the same track.
Never say it couldn’t happen here!
See also Jo Nova’s account of the situation in Europe.
There are companies that started business in the 1800s and survived two world wars but may not last the coming winter. It’s all changing so fast, they lament. With energy costs rising three to sixfold, the highest energy industries are folding. The first casualties were fertilizer, aluminium and zinc, and now in the second wave, the glass makers and tilers are coming undone, and with them, whole towns that support them will unravel too:
‘Crippling’ Energy Bills Force Europe’s Factories to Go Dark
How many power-intensive Australian firms will survive the impending increase in power prices?
Postscript. Why we can’t build RE capacity to get out of the hole.
As the saying goes, when you are in a hole, first of all stop digging. We are in a serious hole with the power supply but the standard response is to keep digging by accelerating the building of wind and solar, storage, interconnectors, hydrogen.
That will not work due to the combined effect of the following factors.
- Wind droughts. These are well-known in some circles but not among the people in AEMO and other advisory bodies who planned the destruction of the conventional power supply.
- Need for continuous supply – no gaps. Hence the term “choke point” that I used to convey the sense of “rapid death” when the wind power supply is too low to keep the lights on.
- No storage
- No capacity to exchange power with neighbours.
The reason why more windmills and solar panels will not help at the “choke point” is that when you have no RE on a windless night, no amount of additional capacity will help. The horses will get out of the paddock through gaps in the fence, regardless of how high you build it. Building the high parts even higher will not keep the horses in. We can increase the penetration of RE in the system by building more capacity but the gaps persist (so why bother?)
As for storage and the calls for “Storage Targets”, we don’t have any effective storage at grid scale at present and there is no prospect of any in sight, despite the number of “big battery” projects in the pipeline. Add them up in terms of MWhrs (instead of MW) and see how much you get compared with the demand on a windless night.
Wind watch update
This morning just before sunrise the wind was generating 7% of power across SE Australia at a capacity factor of 12% (almost down to the 10% for a severe wind drought.) South Australia (the wind leading state) was importing two thirds of its demand and the local generation was 80% gas! A bit of a gap there!
This evening at dinnertime WA was down to 1% of power from the wind. In the East the wind was doing much better, delivering 3% of the demand at a capacity factor of 7 (severe drought.) Victoria is the big wind state with more capacity than SA, though not per capita, and their windmills contributed 1% of demand at capacity 1.4%. Their capacity factor was below 5% for the previous 24 hours!
Approaching 10pm nothing has changed, the wind across the SE is delivering 4% because the total demand has gone down, still the capacity factor in SA is 1.2 and in Victoria 2.8! This is a shot of the NemWatch widget, it is a live display so it will change.
This is the AEMO data dashboard, this is also live, this display shows the flows between the states, see the Fuel Mix tab at the top to find what the different sources are providing.
The wind supply over 24 hours. This is the rolling 24-hour display at Aneroid Energy. Tick and untick the boxes to see individual states. This is the 24-hour display for all sources on the same page.
Rafe,
another great post. Thank you for making this straight forward for the novice.
I guess the average punter in the UK or Germany or even in Oz doesn’t care if manufacturing industry closes down. Many would think its a good thing cos its saving the planet. A few more unemployed doesn’t matter, the economy is booming and the Government will look after the few who struggle. Its all good. Trouble only starts when they cut off domestic power, and they cant get the internet and Netflix and the kitchen starts smelling. But that will never happen.
I am starting to get a bit jaundiced about predictions of doom. There were predictions of blackouts when Hazelwood was being closed. Power is getting more expensive sure, but that’s all Putin’s fault.
I am starting to believe in magic. Men can be lesbians and have babies. The government can put us all under house arrest and we are grateful to them for caring so much. The US M1 supply can increase by 500% in two years, and the US dollar is historically strong. On balance a little nuclear war would be a good thing. They can close down expensive coal power and replace it with cheap windmills. Everything is going to be fine. There is no evidence to the contrary.
rafe:
We’ve been warning of this approaching crisis for the last decade. Now it’s too bloody late to do anything about it, watch the people who caused it change their tune and call it ‘market failure’.
It isn’t ‘market failure’ – the poor bloody market is a donkey trying to pull a cart while half a dozen drivers pull on the reins in different directions. It has been kicked and punched, had dollars shoved down its throat and a hose stuck up its arse in an effort to produce something. The traffic lights in front of this poor bloody donkey have been exchanged for a kaleidoscope of flashing red/white/green blue disco balls.
All because bastards who are in charge have no damn idea of what they’re doing, but because they’re the smartest people in whatever room they occupy at any given time, it won’t be their fault when the donkey goes tits up. It will be ours for not doing what we’re told.
And that’s what gives me the shits – they will never, ever, ever accept responsibility for the chaos.
Is a lot of this deliberate mismanagement the basis for nationalising numerous industries and businesses? France just did that with nuclear power stations apparently.
Appreciate your work Rate – breaking down the insanity for us plebs to understand.
It’s a pity it would be beyond the understanding of the political morons/cretins we have in our govts.
I know the M stands for Morons but what do the A, E & O stand for? The real question is how are the elites going to keep the lights on for themselves, what power source, because they aren’t going to go without. When the lights do go out their places will stand out like the proverbial dogs…
Thank you Rafe. Agreed this has been called out by the more rational of us over many years. But here we are with banks and large investors doubling down on this insanity road.
We have known for decades cheap energy leads to jobs. But listening to Albos jobs summit it was all about new regulations.
We have more information available in this current period than ever before…and we are dumber than eva.
Followed by calls for nationalisation.
Nicely laid out…. But you realise this is just part the globalist plan to destroy the West?
I’d like to think that the coming Northern winter that sees a significant number of people shivering incessantly (and a good many dying) as they can’t afford to heat their homes, might finally shake them out of their torpor and result in widespread unrest and the odd bashing of a politician or three.
But realistically, it is too late for that. The braindead lamestream meeja will never honestly report on the causes and the actual agenda in play is that we, the plebs, will never have access to cheap reliable electrickery again.
In a country such as this one, awash with energy sources as it is, there is no excuse whatsoever for this insanity.
In the meantime, people can continue to listen to that disgusting rat faced cretin bowen screeching about the need to treble down on the stupidity that’s now brought us to the point where the electrickery grid is on the verge of collapse. Just shut down a few more “inefficient expensive heavily subsidised” coal fired power stations and renewable Nirvana, here we come.
But…how will we charge our EVs?!