High cost of failure
The amount we pay for electricity each quarter works on a system where generators are paid for the electricity they produce and retailers pay for the electricity their customers consume.
Example: To supply electricity at 2.05pm, generators 1 and 2 are dispatched to their full bid capacity, and generator 3 is only partly dispatched. The price is $40 per MWh.
At 2.10pm demand has increased. Generators 1, 2 and 3 are fully dispatched, and Generator 4 is party dispatched. The price is $80 per MWh.
At 2.15pm demand has increased a further. Generators 1, 2, 3 and 4 continue producing power and the price remains at $80 per MWh.
By 2.20pm demand has increased to the point that Generator 5 is needed and the price increases to $100 per MWh.
At 2.25pm Generators, 1-4 are fully dispatched and Generator 5 partly dispatched. The price remains at $100 per MWh.
By 2.30pm demand has fallen. Generator 5 (the most expensive generator) is no longer required, and Generator 4 is only partly dispatched. The price returns to $80 per MWh.
The spot price for the trading period is the average of the six dispatch prices: $(40+80+80+100+100+80) per MWh divided by six, or $80 per MWh
Keeping the above in mind, on February 10, 2017 at 4.22 pm the Tallawarra power station tripped and went offline. To make the situation worse – the four generator back-up from Colongra power station failed to start.
The end result, the six dispatch prices between 4.30 pm and 5.00 pm totalled $12,915 or on average $2153 every five minutes. The costs for the next half hour were even greater – $13,967 or $2,328 every five minutes.
Hence the astronomical rise in the retail cost of electricity during the quarter February-April 2017.
The reality – cheap electricity is relative to provider generation in excess of demand. And in the event of failure, it is essential that backup power generation is available instantaneously.
J. Macleod, Berry
The latest fake news out of Canberra from some of the Liberal members of the federal government is the worry about the Chinese government influence and money going to some Pacific island countries.
Have they forgotten the $10,000 of Chinese money that went to the Gilmore Sudmalis election campaign headed by J. Gash?
What interest do the Chinese have in the Shoalhaven?
How was this money spent or was it given back? What strings were attached to this money if kept? Just what interest does the Chinese Communist government have in Australian business, property etc?
The government should first look into its own backyard and, second, establish what influence Chinese money is going on in our country.
W. Bourke, Sanctuary Point
Not for the first time I feel compelled to draw attention to the rubbish being habitually discarded on Fishermans Paradise Road.
It has become a ritual for my partner and I to carry bags to collect the waste that is thoughtlessly thrown from vehicles entering and leaving the village.
During brief holiday visits in recent weeks we have twice set off for a constitutional to the Princes Highway and back - on Christmas Eve and January 10.
The aggregate collect was 35 beer and soft drink cans and bottles, innumerable coffee cups and packaging from every well known fast food outlet. And then some.
Each time we set out on a walk we earnestly hope we won't require the bags. But we always do.