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 Clean, green – and stymied by Big Power 

Clean, green – and stymied by Big Power

22 Aug, 2008 05:36 PM
Walcha grazier, Andrew Burgess, NSW, wants to do the clean, green thing and install a big wind generator on his farm, but all he has done so far is to bounce off a thick bureaucratic wall.

The only way he can justify the expense of a 10-kilowatt wind turbine, which would have the capacity to supply electricity to three houses, workshop and woolshed, and two large water pumps on his property, “Ruby Hills”, is to be paid for feeding surplus energy to the power grid.

And here’s the rub: while Mr Burgess pays Country Energy about 15 cents a kilowatt hour for mains power, Country Energy will only pay him three to five cents/kW hour for the energy he would feed back to the grid from the wind turbine.

“At that rate I estimate that it will take about 95 years to recoup my investment,” he said.

His problem is the size of the turbine. If he wanted to install a turbine up to 4.9kW (about three kilowatts will run a standard household), he could feed excess power back to the grid and get paid the wholesale rate.

But above 4.9kW he is classed as a competitor—and the tariff Country Energy is prepared to pay plummets accordingly.

So despite Mr Burgess being prepared to invest $200,000 to make his annual farm usage of 75,000kWh independent of fossil fuels (amid all the talk of climate change and peak oil), the exercise is being made prohibitively expensive by a rule-bound authority.

“It seems this arbitrary five kW limit has nothing to do with commonsense, and everything to do with protecting the fossil fuel-based infrastructure,” he said.

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Date: Newest first | Oldest first
Andrew needs to look at Ebay and search for Wind Turbines. There he will find a 3kw wind turbine for $3600. Even allowing for double the price for installation and 4 turbines, this only comes to $28800 not the $200000 mentioned in your article.
Posted by Tmatsci, 21/08/2008 9:42:21 AM
If federal and state governments are sincere about their commitment to positive incentives to encourage consumers (business, household, community) to reduce their carbon foot print, then appropriately rewarding financial structures should be created and maintained. After the cost of installation has been covered the tariff could be reviewed but it must have a "rewarding" impact until costs are covered.
Posted by Jude, 22/08/2008 11:44:17 AM
Mr. Burgess should not be paid the going market rate for electricity of 15 cents a kilowatt hour. He should be paid above the market rate (perhaps 18 cents). This would encourage him and others like him to install excess wind and solar energy. Such buy-back tariffs are mandated in Germany. As a result they are installing renewables at an astounding rate.
Posted by trichter, 22/08/2008 9:59:31 PM

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