Infigen Energy – one of Australia's largest renewable companies which has wind farms with a capacity of 278 megawatts near Mount Gambier – says wind can provide the frequency and stability required for the NEM, but there is currently not the financial incentive.
Infigen Energy's director of strategy and corporate affairs Richard Farrell says wind has become the whipping boy in the latest debate over the integration of renewable energy.
He said internal modelling done by the company showed if wind production was removed from South Australia's energy mix and coal-fired power was bid at zero, wholesale prices would be 25 per cent higher.
"If you take wind out of the system in South Australia it doesn't change it. The current problems are totally related to the price of gas. If you don't take the appropriate insurance you get burnt," he says.
Farrell says big industrial users knew the risks of not hedging their prices as wind and solar pushed down wholesale prices. Farrell says a push by South Australian Senator Nick Xenophon to penalise less reliable sources like wind in the RET were misinformed.
"The big challenge is not having a coherent energy and climate change policy in Australia. We have a very hodge-podge approach to transitioning the energy sector," he says.
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Ash here.
This answers the question about why IFN has not actioned it's suite of development plans - it awaits a new federal government renewables policy from Josh Frydenberg.
The L/NP government is under intense pressure from the owners of fossil fuel generators to allow them a few more years of production from their otherwise stranded assets by inhibiting wind and solar installations.
Viable industrial-scale batteries or other storage means breaks this stalemate in a moment. We shall watch this aspect with considerable interest.
GLTA
Ash
IFN Price at posting:
$1.15 Sentiment: Buy Disclosure: Held
