Anorak | Idiot governments and renewable power: the subsidy strike prices shambles

Idiot governments and renewable power: the subsidy strike prices shambles

by | 21st, September 2013

OK, so, let’s say that all this concern about climate change is correct. It’s happening, we’re responsible and we’ve got to do something about it. OK, fine, so, what should we be doing?

Well, obviously, we should be trying to find methods of producing electricity that doesn’t involve carbon emissions. This isn’t particularly sophisticated logic after all.

There are also various types of low carbon electricity, some more expensive than others. We’d clearly like to have more of the cheaper stuff and less of the more expensive. So, how would we do this? All of them require a subsidy but how do we get more of the cheaper and less of the more expensive?

Have just the one subsidy. That subsidy level, whatever it is, being high enough to get as much renewable electricity as we desire to have. But by having the one fixed rate obviously everyone will rush to produce whatever is the cheapest of them. So what does the government do?

The real outrage is the pretence of delivering at ‘lowest possible cost’, and incontrovertible proof is readily to hand in the shape of the CfD ‘strike prices’ (= guaranteed electricity prices) announced over the summer for the various technologies on offer. Some examples:

Landfill gas: 65 (£/MWh)
Energy from waste: 90
Hydro: 95
Onshore wind: 100
Large scale solar: 120
Offshore wind: 155
Tidal and wave: 305 (sic)

Yep: the more expensive your electricity is the more subsidy you get.

These people are mad.

Posted: 21st, September 2013 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink