"It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong." Richard P. Feynman

Wednesday, July 13, 2011

Renewable Subsidies Too Costly said Productivity Commission! Who Cares Says Julia!

The the Government's  own Productivity Commission says that renewable subsidies are a waste of money.


LABOR is wasting money and holding back deeper cuts to carbon emissions by subsidising renewable energy schemes such as wind turbines and roof-top solar panels.
The Productivity Commission has urged that subsidies for renewable energy be scrapped with the introduction of a carbon price, saying they are extremely expensive and make any form of carbon market less efficient.

Julia Gillard's economically irresponsible response to this report  is to throw an extra 10 billion dollars to the renewables industry with a 100 billion planned by 2050. No new coal fired stations are to be built - we will leave that to the Chinese who are building coal-fired capacity at a rate of one Hazelwood station every three weeks to burn our (untaxed) coal we send them.Our industry will run on sea-breezes,sunbeams and pixie dust at ten times the cost when it is available 
The long-range restructuring is ambitious and Treasury modelling identifies the transition from 2011 to 2050. Within the energy mix conventional coal falls from 70 per cent to 10 per cent over 40 years. Carbon capture and storage for coal is assumed to provide about 15 per cent of the 2050 mix. While the role of gas is enhanced the real shift is from coal to renewables, which are estimated to provide 40 per cent of the 2050 mix.
Practical carbon capture and storage is of course a myth and we may as well invest huge amounts of taxpayer funds in unicorn farms.
Senior ministers publicly affirm they do not expect any new conventional coal power stations will be built in Australia and they plan before 2020 to pay for the closure of significant brown coal power generation.
On the renewable side, the new Clean Energy Finance Corporation will fund renewables to $10 billion over five years, offering cheap loans and commercial loans, loan guarantees and equity with a cost to the budget for cheap money of nearly $1bn across the forward estimates.
Yes, it is a green bank. The aim is to use the government's balance sheet to persuade private investors and super funds into renewables.
Any Super Funds investment funds manager who puts members hard-earned money into any of these subsidy-sucking cockamamie green schemes should be shot!

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