Don’t blame renewables for electricity price increases

In a report titled 2013 Economic and Political Overview, written for CEDA (Committee for Economic Development Australia), AGL economists Paul Simshauser and Tim Nelson have named distribution as the main cause of increasing electricity costs. They found that the main drivers of increased energy prices were increases in network costs due to higher capital costs and an increasing peak demand.

Also responsible are increases in coal and gas costs and electricity generation costs using these fuels. Renewable energy costs have increased from 2008 (including costs incurred by FiTs, the small-scale renewable energy scheme and the large-scale renewable energy target), but still remain minor when compared to other distribution and generation costs.

www.ceda.com.au/media/290387/epofinal 2013.pdf

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