South Australia power prices : Redmond gets it wrong

Claims by South Australian Opposition Leader Isobel Redmond that wind and solar power were major contributors to electricity price rises in South Australia are incorrect says the Clean Energy Council.

Last week we reported on a study stating pricing for residential electricity supply in Australia is among the highest in the world, with South Australia at the top of the list of Australian states. South Australian electricity prices were noted to be the third highest globally after Denmark and Germany

South Australian Liberal leader Isobel Redmond seized on the report; apportioning blame on the state’s uptake of solar energy and wind power for the price hike.

“We know that Denmark has more wind power than any other electricity market and Germany has the highest level of solar photovoltaics, the South Australian Labor Government has pushed both of these technologies here,” said Ms. Redmond.

Clean Energy Council Policy Director Russell Marsh said the claim was “simply untrue”.

“To be honest, we’re scratching our heads about the claims made by the Opposition Leader. More than 90 per cent of the price hikes over the next three years will come from increases in costs for the traditional energy system,” stated Marsh.

“South Australia has a relatively small number of electricity users spread over a large geographical area. The cost of maintaining such a large network means that state power prices are higher than other parts of the country.”

Mr. Marsh said a recent report by the Australian Electricity Market Commissionshowed large-scale renewable energy made up just a few percent of the increases to electricity bills.

In January, Isobel Redmond vowed to ban wind farms within 2 kilometres of any residence in South Australia, in addition to another key element of the Liberal’s policy - a ban on wind farms within 5 kilometres of townships.

26 per cent of South Australia’s electricity was sourced from wind power last year, more electricity than was generated by coal-fired power stations.

With household electricity prices having risen by more than 40 per cent since 2007 and projected to rise by another 30 percent in the next couple of years; more South Australians are expected to install home solar power systems - particularly in the lead-up to a looming 33 per cent reduction in solar rebates.

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