Hughes bites back
Oct 22, 2012
Bishop Hill in Energy: wind

The battle of wits and words between Robert Gross, the Imperial College PR guy turned policy wonk, and Gordon Hughes, the Edinburgh University economist continues apace, with Hughes issuing a pointed response to Gross's criticisms:

The story of wind power in Europe is one of consistent over-optimism about performance and costs reinforced by an apparent unwillingness to define clear policy options and then construct analyses based on concrete evidence. Modelling is not a substitute for evidence. In practice, the Imperial College/DECC claims about the costs of current policies rest upon the old story of “this time everything is going to be different”. Really? How could we test this?

I would propose a simple market test that bears directly on the subject of the original ECC hearing. If the proponents of the Imperial College/DECC view of this issue believe that my calculations of the costs of existing policies are wrong, why do they not endorse a major and continuing reduction in the level of subsidies? For example, the costs claimed would be consistent with a reduction to 0.5 ROCs per MWh immediately and to zero by 2020 for onshore wind and something equivalent for offshore wind.

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