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De-Electrification Of Australia’S Grid
Views: 1751
Aug 04 2013 10:05 PM | eds in Economy & Politics
One of the certainties in the energy business used to be,
. . . the regular year-in, year-out rise in demand for electricity.
The peak in 2008, the outlook for electricity investment was looking rosy,
. . . but average demand has reduced by about
. . . 2 gigawatts or about 8%.
If it continues for a few more years then, by analogy with economics,
. . . it will be worthy of the appellation the great De-Electrification.
To appreciate the real significance of these numbers,
. . . we need to look back a few years.
. . . Because the planning for new generating plant takes many years,
. . . we are still in an investment cycle that dates back 5 years or more.
The fall in demand is creating a tremendous capacity overhang in generation.
. . . That has significantly depressed wholesale electricity prices
. . . over the last few years.
And that is impacting industry players such as AGL,
. . . who have been recently reported as calling for a
. . . retirement of up to 9 gigawatts of generation capacity.
Source: De-Electricifation
. . . the regular year-in, year-out rise in demand for electricity.
The peak in 2008, the outlook for electricity investment was looking rosy,
. . . but average demand has reduced by about
. . . 2 gigawatts or about 8%.
If it continues for a few more years then, by analogy with economics,
. . . it will be worthy of the appellation the great De-Electrification.
To appreciate the real significance of these numbers,
. . . we need to look back a few years.
. . . Because the planning for new generating plant takes many years,
. . . we are still in an investment cycle that dates back 5 years or more.
The fall in demand is creating a tremendous capacity overhang in generation.
. . . That has significantly depressed wholesale electricity prices
. . . over the last few years.
And that is impacting industry players such as AGL,
. . . who have been recently reported as calling for a
. . . retirement of up to 9 gigawatts of generation capacity.
Source: De-Electricifation