As stated in previous updates, modern Australia is totally reliant on a reliable, low cost, uninterrupted supply of electricity 24hrs a day/ 7 days a week (24/7), to be able to function at full capacity and be efficient, prosperous, safe and secure.
Currently the Australian Energy Market Operator (AEMO) divides the 24 hours of a day into 288, 5 minute blocks. It then asks owners of electricity generators driven by Batteries, Biomass, Black Coal, Brown Coal, Gas, Hydro, Liquid Fuel, Solar and Wind. To bid a price to supply an amount of electricity for a particular block of 5 minutes. E.g.1.00pm to 1.05pm. The AEMO then has software to sort the bids from the lowest to the highest, selecting the lowest bids as winning to forfil the requirements for that particular 5 mins. The AEMO does this 6 times each 30 mins, at the end of which the winning bids are averaged and becomes the spot price paid to the winning generators and is charged to electricity retailers for that 30 mins. And remember it does it 288 times a day.
Why is the bidding restricted to only 5 minutes you might ask? The only reason I can see is that the AEMO legislation forces it to take 5 minute bids, because some of the generators ARE SO UNRELIABLE that they can’t be certain that they are able to provide any more than 5 minutes, AS THEY MIGHT NOT HAVE ANY FUEL FOR ANY MORE MINUTES. E.g. Batteries might be flat or recharging, Biomass might be changing fuel stock, Hydro might consider the price is too low to bid, Liquid Fuel might consider the price is too low to bid, Solar cannot bid because they have no fuel because it is too cloudy, raining or the Sun has set, Wind turbines because they have no Fuel, because is either too calm or too windy for the Turbines to operate.
To me this is an absurd situation. The AEMO is only seeking to get the lowest price for only a five minute period, because Batteries, Biomass, Hydro, Solar and Wind MAY ONLY BE CERTAIN THAT THEY CAN PROVIDE ELECTRICITY FOR ONLY FIVE MINUTES.
But consumers especially business and manufacturing in a modern society require low cost, reliable electricity for every minute of a 24hr period, 7 days a week. The AEMO 5 min bidding structure ends up with say 8 hours of a day with a price of $15/MWh = $120, 8 hrs @ $114/MWh = $912 and 8hrs @ $184/MWh = $1472. For the 24 hours it comes to a total of $2,504. Averaged over 24hrs = $104/MWh. In the June quarter of 2022, because of the high prices for coal and gas AEMO spot prices averaged $264MWh. https://aemo.com.au/newsroom/media-release/quarterly-energy-dynamics-report-for-q2-2022
Both High Efficiency Low Emissions (HELE) Coal Fired Power Stations, Gas Fired Power Stations and Small Modular Nuclear Reactors (SMNR) operate at their most efficient, with the lowest cost when they are able to operate with a steady output 24/7. And their owners are able to invest in confidence if they know they are able to contract to supply the output to the AEMO 24/7. The result is satisfied generators, a satisfied AEMO and satisfied and secure electricity consumers.
The current AEMO 5 minute bidding system, allowing opportunistic, subsidised, fuel starved generators to bid, is only creating a highly uncertain supply and priced result. It is also depriving the prospective investors in coal, gas and future nuclear generators of the certainty they require to invest in much needed base load electricity generators able to provide base load electricity 24/7 that consumers so desperately need. And is leading to the current coal fired power stations being closed and no coal or nuclear powered generators being built.
To overcome this situation, I have added into our petition. “That in order that Generator Owners are able to invest with confidence. We believe that only Generators that are able to supply electricity for four continuous hours at a time should be able to bid to supply electricity to the AEMO. Generators unable to supply electricity for four continuous hours at a time, are too inefficient to be worth consideration”.
KEEP INFORMED BY DAILY MONITORING THE AEMO DATA DASHBOARD. And alert your friends to watch the AEMO dashboard, the more know what's happening the better.
Particularly at 7pm and 7am (Or a time that suits you?) watch (and record) the mix of coal, gas hydro, batteries, solar and wind generation and the prices per MWh for each State on the AEMO dashboard.
IT IS VITALLY IMPORTANT THAT NO CLOSED COAL FIRED POWER STATION BE DEMOLISHED AS THEY CERTAINLY WILL BE NEEDED IN THE FUTURE.
We are up to 1,585 signatures, let’s increase it by many more, everyone’s future depends on it. Continue to spread the word, to all family, friends, anyone you meet, particularly discuss it with shop and business owners. Ask the question, “How do you plan to cope when the blackouts come? Caused by this senseless Net Zero by 2038 Plan.
I would value it if you are able to donate $20 or $50 to promote the petition https://www.change.org/p/blackouts-will-be-devastating-they-must-be-avoided-at-all-costs and to also promote it on Facebook, Twitter, Whatsapp or Email.