Cheaper power on the way
SUNNY days are here again!
Well, technically, they never left, but now we are at the dawn of a sun- powered energy and economic boom in North Queensland. That’s the firm opinion of solar battery industry boss John Grimes, who told the Power North Queensland Summit in Townsville yesterday that our region is set for a $ 5 billion renewable energy windfall. If Mr Grimes’ figures are accurate, the impact of this surging industry will be extraordinary.
In all, 31 large- scale solar projects are under way or about to start in this region, generating more than 3200 jobs and ultimately unleashing 5 gigawatts of power. To put this into perspective, Queensland’s entire energy industry generates about 8 gigawatts of energy. So Mr Grimes is describing a 60 per cent- plus expansion of our energy capacity.
Simple supply and demand principles will tell you that should have a dramatic effect on power prices. More supply should equal lower electricity bills.
So far, so very good. But there is a catch. In order to exploit this new supply for all it’s worth, we will need to significantly upgrade our transmission infrastructure — the wires that connect the power sources to the grid.
Furthermore, these power sources will need to find a way to capture and store the energy created. Battery technology is advancing rapidly and experts predict it will create viable storage capacity for these solar farms within a few years.
That timeline begs the question debated yesterday between our two major parties in Queensland: should we invest in another coal- fired power station to guarantee security of supply while we wait for the renewable storage technology to come online.
Premier Annastacia Palaszczuk says no, we will have ample supply to see us through to the delivery of large- scale solar generation, storage and transmission.
The Opposition, via Liberal National Party energy spokesman Michael Hart argues the lack of guarantees surrounding renewables threaten to send us down the same energy- insecure path as South Australia. This will be a key point of difference between the two major parties in the looming state election. It could be the decisive issue. Our guess is that the winner will be the party that makes the case that only it can reverse the spiralling cost of power for consumers and businesses.