We have created a perverse market for Wind Turbines

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I believe we are paying the price for creating a perverse market for Wind Turbines in Victoria.

My argument is as follows:

The benefit of wind turbines is that they reduce the power generated by other generators. That is, "free" wind power replaces brown coal, gas and hydro power.

Wind turbine facilities are paid on the power they put into the grid at the switchyard (at the end of the turbine facility). This is the same situation as every other generator in the Victorian power grid.

The amount of power put out by these generators in Victoria is between 19% to 30% of their rated capacity (depending on the quality of the wind). From my understanding they are paid just over 10c per kwh.

The problem is that wind turbines are not the same as every other generator in the grid, they are intermittent and unpredictable. If they were small scale, such as those attached to houses or commercial buildings, this wouldn't be an issue, but they are not, they are large scale generators.

NEMMCO receives their output and then needs to balance the grid to ensure that it is stable and that Maximum Demand at the Node (region) is met. Their calculation of the firm contribution from wind turbines used to reduce the Maximum Demand at the Node is 8%.

We are paying them at 30% when their benefit to the grid is only 8%.

If you take 8% as the best estimate of their environmental benefit, then the Sidonia Hills Wind Turbines will only "power" 7,600 homes, not 33,000.

Happy to argue the point, but I still haven't been given a satisfactory explanation for this.

Click here for my full argument and supporting documentation

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