Wind farm myth busted

The myth that renewable energy sources - in particular wind farms - are pushing up Victorian power prices has been busted.

Powershop, a Victorian electricity retailer, commissioned Sinclair Knight Merz to model the impact of the Renewable Energy Target (RET) scheme on retail energy prices. The research showed that renewable generation encouraged by the scheme actually put downward pressure on power prices, even after including the costs of the scheme - contrary to claims made by anti-wind farm groups.

Powershop CEO Ben Burge said the modelling shows Victorians will pay around $35 less per year from 2011 to 2025 than if the RET did not exist. According to Burge, the electricity injected into the system by new wind farms is reducing energy prices derived by owners of thermal (ie, coal-fired) power plants, keeping energy costs lower for consumers.

“The modelling clearly demonstrates that those who say wind farms are pushing prices up have got it wrong and that the RET is putting downward pressure on power prices,” Burge said. “Now, this isn’t to say power prices aren’t rising and that consumers aren’t feeling the effects. But to blame the increase on wind farms or the policies that support them actually runs the risk of further increasing prices for consumers.”

Burge said policymakers need to take an approach informed by evidence and facts, with a view to protecting consumers and the long-term national interest.