AGL says 9GW of baseload fossil fuels no longer needed

[GliderGuider]

AGL says 9GW of baseload fossil fuels no longer needed

AGL Energy, one of the big three power utilities in Australia, says that 9,000MW of fossil-fuel baseload capacity needs to be taken out of the national electricity market (NEM) to bring it back into balance.

The claim was made by managing director Michael Fraser, on Wednesday, at the announcement that AGL Energy had secured extra financing for its 155MW solar PV project in western NSW – the first solar project of its scale to be built in Australia.

“There is too much baseload relative to where demand has got to, and rooftop solar has impacted on demand … and that has impacted on the economics of coal-fired generators.

That assessment of 9,000MW equates to nearly one-third of the country’s baseload generation – a sure sign that renewables, and in particularly rooftop solar, are changing the dynamics of the market. And it also suggests that some state governments built more generators than was necessary, as they have done more recently with poles and wires.

Good news for a change - the fossil fuel industry can start packing up its shit.

[NYC_SKP]

1. And their worst fears come true.

Fossil Fuels are, largely, unnecessary with increasing deployment of renewables and a little bit of energy management and storage.

[kestrel91316]

2. And conservation. Big oil/coal/gas is TERRIFIED of conservation.

[mbperrin]

3. Very good.

I won't miss those polluting sobs at all.

[NickB79]

4. Unfortunately that extra coal won't stay unburned

It's still too valuable not to export.

[GliderGuider]

5. Shhh! Let people have their moment of hope.

Before reality steps in and shreds it yet again...

[quadrature]

6. please post the price of electricity

electricity demand changes during the day.
generation is added, or removed from the grid, as needed.

typical, for the 'swing' generators to post a price
at which they would join (or drop from)
the grid.(or the grid posts a price for their next hour,
or some other variation)

perhaps some kind soul could write here,
the typical prices for what is proposed to
be eleiminated, v. the replacement price.

[kristopher]

7. Profitability is determined by total value of sales vs expenses

Each of these generators may have been selling into different markets eg long term, day ahead or spot.

Solar deprives them of the revenue from selling their electricity during the most valuable period - midday.

Loss of that revenue means that as a profit center they cross the line from profit to loss.

They close.

[wtmusic]

8. If the fossil fuel industry can "start packing up its shit"

it won't have anything to do with solar, which has yet to provide 1/10 of one percent of Australian electricity.