In writing this letter, I wish to enlighten the readers of the Goulburn Post about subsidies paid to the wind farm industry. I had originally responded to a letter to the editor [titled] ‘Kill the subsidies’ in The Land (October 26, 2017) by Max Talbot of Cooma, addressing the point on the alleged subsidies for coal-fired stations made by Mr Talbot.
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All coal mined in Australia (whether exported or used locally) incurs a royalty payment to the government of the state in which it is mined. There are no such charges on wind or solar farms for using local resources. So, coal-fired plants are not only unsubsidised (unlike wind and solar), they are taxed (unlike wind and solar).
Solar and wind should lose their subsidies and have a tax imposed on them by their state governments equivalent to the tax imposed on coal (or gas) fired power generation. Then there would be a “level playing field” in the electrical generation industry. For reference to royalties paid by coal miners in Australia please visit NSW coal royalty rates:
resourcesandenergy.nsw.gov.au/miners-and- explorers/enforcement/royalties/royalty-rates
Coal mining companies are the highest royalty paying miners in Australia; viz:
- 8.2pc of value of open cut coal
- 7.2pc of value of underground coal
- 6.2pc of value of deep underground coal
Confidence in the National Energy Guarantee therefore can only be realised when subsidies paid to both wind farm and solar farm operators are completely removed. Then the above two operators must convince the Australian public that they can supply a competitively priced, electrical base load delivered to the consumer.
John McGrath, Secretary, Yass Landscape Guardians