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Harrow said..
FN, it's not the ability or inability to be able to ramp up and down quickly that is killing the coal, it is the fact that they need to run at high output for most of the day to get enough return on the capital investment. Once enough renewables are built, coal will get pushed off the bid stack most days, and they'll only run at night when there is no wind. That's just not enough sales to make a profit, and it's why people are building gas turbines. The fuel is expensive, but much less capital, so it's worth it just to supply the peaking power when the price spikes.
Exactly right and the implication of this is that the marginal cost of energy will be determined by the all in sustaining cost of those marginal units. Ie as the generation mix changes over time the type of fuel used at the margin changes.
As we have moved from a coal baseload with all in costs of around 22 to 35 dollars depending on type to more and more combined cycle gas at 40 to 50 the cost of power had risen to the cost of gas. Then the cost of gas rises too. No surprise there.
Guess what the unsubsidized cost of renewables is between 80 and 120 dollars. We use subsidies ie taxpayer and energy user money to get that to 45 dollars ie competitive to c.c gas and bingo we have an explosion of renewables in our energy mix.
This is how the market has been tweaked to get the renewables to explode and the increase in the marginal cost of power is the true hidden cost of renewables plus of course the subsidies.
Over time the mix will tilt further to renewables as that is what the market has been tweaked to do and the marginal cost will rise further as subsidies are removed
Studies I've seen have this settling at around triple what it is now but alot can change before then.
That said this is just the economics of our market with all it's tweaks and quick fixes from different jurisdictions both state and federal. In China for example where it actually matters to the environment the "market" sends a completely different signal and thats why they get coal fired generation as their most economic new build and they continue to do it by the gigawatt.
Be careful generalizing our unique market outcomes elsewhere and saying things like coal is uneconomic and renewables are cost competitive. Thats just here.
The way we get billed will also change meaning the free ride to small solar installs will end so don't think you can hide there for long.
Like I said before rolling this forward the economic thing for many to do will be solar and battery fully disconnected from the grid. That's tremendously expensive and innefficient both for the individual household and for the rest of the grid as those left on it will see even larger price increases due to less users over fixed costs.
Business in particular will suffer here making us uncompetitive internationally and with additional increases to our cost if living on pretty much anything made locally.
This is the stuff not discussed and that's what gets my beef. We are not getting the big picture on what this all means for us down the track. Oh and of course like I said all for no measurable impact on the environment. That's the frustrating bit. A wrecked economy and huge increases in cost of living just for a bit of virtue signalling.

