Antinuclear

Solar power success is putting the brakes on gas-fired electricity in South Australia

Solar Helps Delay South Australian Peaking Power Plant http://www.energymatters.com.au/index.php?main_page=news_article&article_id=3489by Energy Matters, 27 Nov 12 Construction of a gas-fired power station at Tepko near Mannum in South Australia has been put on the backburner again; thanks in part to the state’s solar households.

According to an article on AdelaideNow, a start on the $750 million 1 gigawatt Cherokee gas-fired peaking power station has been deferred until the second-half of 2014 due to previous cooler summers and the uptake of solar panel systems.

A report from the Australian Energy Market Operator (AEMO) released in November showed South Australia’s annual energy consumption decreased by approximately five per cent in 2011-12 compared with 2010-11 – about 10 per cent lower than forecast.

Forecasts for main-supplied energy use in the near future also remain muted in terms of any growth in demand.

The Tepko project is to be built in stages, with the first 250MW originally to have been completed by the end of next year. That stage now won’t be completed until 2016, assuming it goes ahead under the new timetable.

The Cherokee facility would only operate during times of peak demand; when electricity is more expensive – sometimes costing thousands of dollars per megawatt hour.  However, the peak power gravy train has been derailed a little in recent years due to renewable energy’s impact on the Merit Order Effect; which has reduced the cost of wholesale electricity and made peaking power plants less profitable.

While on the topic of gas, the notion of it being cheap is rapidly evaporating, along with its green street cred. Energy companies in New South Wales want to increase their prices by as much as 10.4 per cent next year and gas prices could triple over the next decade due a jump in exports from Australia’s east coast according to an ABC article.

Recently, the coal seam gas (CSG) sector also suffered another setback after revelations of high levels of methane gas and carbon dioxide around the Tara gas fields in Queensland.

November 28, 2012 - Posted by Christina Macpherson | solar, South Australia