There are four main structural problems with Wind Turbines in the Victorian Market.

1. We are paying for output (30%) not for their benefit to the grid (8%)
2. There are no demonstrable direct environmental benefits for large scale facilities in the Victorian grid
3. They are receiving RECs for every megawatt of output, whether useful or not
4. They are not "full market participants" and therefore do not pay for the costs that they cause.

These issues, and many others have been recognised in 2005 by the following government agencies:

• VenCorp (Victorian Grid Management Corporation) in their recent report on directions to 2030 it ends with the fact that a separate study (like the ESIPC report below) is required to manage the transmission and market challenges for wind turbines. They also submitted this to the MCE which states that the Contribution from wind is only 7%.
• ESIPC (South Australian Electricity Supply Industry Planning Council) In their Planning Council Wind Report to ESCOSA it lists the many challenges facing SA in the face of high levels of wind power penetration, the power market perversions and the firm contribution from wind only being 7-8%.
• NEMMCO (National Electricity Market Management Company, soon to be AEMO) raised the spectre of the 8% contribution to reduction of demand at the node in their 2005 Load Balancing White Paper
• MCE (MINISTERIAL COUNCIL ON ENERGY!) in their discussion paper many of these issues were known in 2005 but still have not been resolved.
  

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