Australia’s Energy Minister, Josh Frydenberg reckons adding more wind and solar will cut power prices, like South Australia never happened.
In his efforts to sell his National Energy Guarantee, Frydenberg and his coterie of ‘expert’ advisors have not only ignored reality, they’ve attempted to substitute it with their very own.
Over the last decade, there have been dozens of reports said to predict the path of power prices in the future.
Based on heroic assumptions (although they’re rarely disclosed) every one of them has predicted that power generation costs would plummet, with the addition of heavily subsidised and chaotically intermittent wind and solar.
With annual retail power price increases of between 13 and 28% – year-on-year – over the last three years, you’d think that these economic forecasters would give it up and join a travelling circus to hide their shame.
Of course, everyone’s an expert with the benefit of hindsight, but with that track record it would be a brave soul who backed the wisdom of these modern-day soothsayers.
Well, Josh Frydenberg is nothing, if not courageous.
He keeps talking about falling power prices as if it’s a real, here and now thing. Josh, the simple graphic above is not that difficult to follow.
Adding intermittent wind and solar is a guarantee of spiralling power prices.