From Brian Robins:
“The inconvenient truth is that the increasingly high prices for increasingly unreliable electricity are a direct consequence of the increasingly high utilisation of renewable energy required by government regulation,” Gary Banks, a former head of the Productivity Commission, said in a speech to Infrastructure Partnership Australia on Thursday night.
…”Energy markets are admittedly complicated things. However the logic is unassailable that if a cheap and reliable product is penalised, while expensive and less reliable substitutes are subsidised, the latter will inevitably displace the former. No amount of sophistry, wishful thinking or political denial can change that basic economic reality.”
“Changing the mix of energy use away from low-cost but emissions-heavy fossil fuels has of course been the whole point,” he said. “The resulting costs and difficulties have been greatly compounded, however, by governments choosing a policy path that is essentially anti-market, one violating basic principles of demand and supply.”