Cost and Price of Electricity
Source: AGL economists Paul Simshauser and Tim Nelson for CEDA |
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Renewable Power - levelized cost of energy (LCOE)The International Renewable Energy Agency, IRENA, analysts found that depending on location, and assuming a uniform 10% cost of capital, the weighted average LCOE for: small hydro power project - $0.032 - $0.07 per kilowatt-hour (kWh)
large hydro power installations - $0.03 - $0.06/kWh
new biomass power generation capacity among non-OECD countries- $0.05-$0.06/kWh; geothermal - $0.05 - $0.09/kWh; onshore wind - $0.08-$0.12/kWh; utility-scale solar PV - $0.15-$0.31/kWh; CSP - $0.22-$0.25/kWh.
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Feb 2012 pricesA new analysis from research firm Bloomberg New Energy Finance has concluded that electricity from unsubsidised renewable energy is already cheaper than electricity from new-build coal and gas-fired power stations in Australia. The modeling from the BNEF team in Sydney found that new wind farms could supply electricity at a cost of $80/MWh –compared with $143/MWh for new build coal, and $116/MWh for new build gas-fired generation.
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Average annual price trend in residential electricity – 2005-2011Source: Submissions to the Senate Inquiry into Electricity Prices,
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http://reneweconomy.com.au/2012/solar-insights-why-pv-is-cheaper-at-the-socket-71910/pv-costs The yellow section of the bars is the fixed price charged by the power companies. As PV becomes a threat they will raise this to make PV uneconomic and get us to pay for their overinvestment in transmission lines. By then battery storage will hopefully become economic so we can go off grid.
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2011-12 Electricity prices NSW 2012
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Our power price is made up of:
The cost of obtaining new customers, finding them, advertising and offering discounts, is $192.43 each in NSW. This cost is passed on to all consumers – and given that the “churn” rate in the industry is 20 per cent – that is one-in-five customers changing retailers every year – it seems that electricity customers are paying more for the cost of signing up their neighbours than they are for green energy schemes. Ref
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Queensland average electricity demand, and available supplyThis chart shows how the price of electricity in Queensland has changed as the coal fired capacity has increased. $30/MWh is 3c/kWh. The predictions of future demand have been completely wrong and too many coal fired power stations have been built. Demand has reduced due to high retail price, increasing energy efficiency, and the installation of rooftop PV. |
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CEDA reccommendationsAustralian Electricity Market Recommendation 1• The regulatory framework for electricity metering should be amended to introduce competition for metering services. Such an outcome would promote CEDA = Committee for Economic Development of Australia Who is CEDA
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