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kristopher

(29,798 posts)
Wed Feb 12, 2014, 04:39 PM Feb 2014

New solar threat to networks – death spiral for gas

New solar threat to networks – death spiral for gas

By Giles Parkinson on 10 February 2014

Australia’s energy utilities have added a new element to their push for solar incentive schemes to be removed, arguing that gas networks now face the same threat as the nation’s network of poles and wires – a “death spiral” scenario where rising costs push consumers to consider other technologies.

The Energy Network Association – which represents the distribution and transmission networks in the electricity and gas markets – has called on the federal government to remove the small-scale renewable energy scheme, which provides certificates for rooftop solar PV, and solar hot water systems, as well as heat pumps.

“To reduce pressure on electricity prices, we should stop subsidising technologies that don’t need it,” ENA CEO John Bradley said in a media statement accompanying its submission to the Energy White Paper. “Solar PV technology is now well established and is forecast to undergo significant growth without further subsidies.”

Bradley also said gas hot water systems – which provide significant emission reductions compared to the 4 million electric water heaters still in the market – are competing against subsidised heat pumps and solar hot water systems in distorted appliance markets.

The push to remove subsidies for solar comes as ...


http://reneweconomy.com.au/2014/latest-threat-networks-death-spiral-gas-83467
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pscot

(21,023 posts)
2. Our product costs tooo much
Wed Feb 12, 2014, 05:07 PM
Feb 2014

so we're begging government to stifle our competition. Yeah! That'll work.

 

NYC_SKP

(68,644 posts)
3. "Death Spiral for Gas"? A little too optimistic, Kris, because they are so powerful.
Wed Feb 12, 2014, 06:49 PM
Feb 2014

Maybe after a generation. Not to be a buzzkill, but they won't go down without a fight.

70% of our congresspeople are influenced by the natgas industry or their ancillary services, conservatively.

kristopher

(29,798 posts)
4. Maybe. The article is chronicling the way the natgas industry is starting to 'fight'.
Wed Feb 12, 2014, 06:59 PM
Feb 2014

They have a few weaknesses that might be difficult to overcome, however.
The reserves are almost certainly overstated.
They want to sell to the world market - that raises their price. Higher prices makes them less competitive to declining renewable costs.
The price of renewables is no longer being set by our policies. Since the global market is driving manufacturing and that is driving down costs, local US policies enacted by fossil/nuclear friendly interests can only act as a delaying action. The new constituencies created by the benefits of renewable technologies will continue to expand - meaning an ever expanding political voice.

I believe we are very close to a real tipping point where the obstructionism is going to crumble. And for the record, in spite of the claims by nuclear proponents on this forum about my outlook, those that know me in real life know that I'm actually a pragmatist that tends strongly to err on the pessimistic side.

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