“Big energy users
like factories and farms
will be able to earn money
by saving energy during
heat waves and at other
times when electricity
prices are high,”
the Australia
Institute’s
energy lead
Dan Cass said.
They call it
“wholesale
demand
response”.
Australia already has
very expensive electricity,
so companies already
have a reason to use
electricity efficiently.
The government is adding
a new layer of complexity
to reduce demand spikes
they may not be able
to handle.
It's supposed to start
in October 2021 when
the Australian warm
weather begins.
“Wholesale demand response”
means the wholesale market
can pay users for cutting
electricity consumption,
rather than paying electricity
generators to increase supply,
when the system is under strain.
“Peak load” electricity
generators typically receive
very high prices for supplying
additional electricity during
heavy demand periods,
for a few hours a day.
Using less electricity
means Australian
citizens will be
producing less.
How can they
get richer
by doing less ?
A greener economy
means companies
produce less, move
overseas, generate
less profit, employ f
ewer Australians, and
pay less taxes.
Under the change,
large electricity users
(such as big farms,
factories and commercial
enterprises) will be
able to bid reductions
in their demand
from the wholesale
market, and get paid
for taking their demand
out of the system.
Over time, demand
response is expected
to be extended to
households and
smaller businesses.
They will sign up
with companies
that “sell” power
reductions
from thousands
of customers
into the market
at times of the day
when wholesale
prices are high.
There are still
Australian renewable
energy subsidies.
And renewables
electricity generators
don't pay their fair share
of transmission costs,
and fossil fuel back up
of their intermittent power.