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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2017-06-20 Daily Xml
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Wind Power

Mr PENGILLY (Finniss) (14:55): My question is to the Minister for Energy. Does the minister accept ESCOSA's independent advice that, and I quote, 'Wind-powered generation has...driven out less expensive forms of generation and contributed to more volatile spot prices'?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:55): If the argument that I think that the member for Finniss just made is that if renewable energy is so cheap that it's driving out other forms of energy, yes, it is. The reason it is so cheap is that renewable energy is very efficient. Its power source is cheap—wind and sun.

Mr Marshall: The problem is it doesn't have any base load.

The Hon. A. KOUTSANTONIS: 'We don't have any base load power.' I think the people of AGL, Origin and ENGIE would disagree with the Leader of the Opposition. Perhaps he should visit one of our gas-fired power stations and talk to them about how they are not base load. Perhaps if he knew that he wouldn't say such embarrassing things. But, yes, renewable energy is very cheap and it does push out other forms of energy. It's happening all across the National Electricity Market. It's called the transmission for a carbon-constrained future.

Mr Marshall: There's carbon in Victoria.

The Hon. A. KOUTSANTONIS: Victoria has just lost 25 per cent of its base load generation. When their price reset comes in December, who will the opposition blame for that price reset? Will they blame the commonwealth renewable energy target and the subsidies that it pays to renewable energy, or will they blame the Victorian government?

Mr PENGILLY: Point of order: I ask that the minister addresses the substance of the question. I can give it to him again, if he needs it. The question was: does the minister accept ESCOSA's independent advice that, and I quote, 'Wind-powered generation has...driven out less expensive forms of generation and contributed to more volatile spot prices'?

The SPEAKER: My recollection is that the Treasurer said yes to begin with and then added some bonus points.

The Hon. A. KOUTSANTONIS: Thank you very much for your independent adjudication, sir. It's always good to have an independent adjudicator in the house. Thank you, sir. The reality of what the opposition is saying is that they don't like renewable energy. They don't like wind farms. They have done all they can to try to stop them. They don't like solar energy. They don't like transition.

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