Sober, scary
Nov 17, 2013
Bishop Hill in Energy: grid

Gordon Hughes explains to the readers of the Glasgow Herald why their electricity bills are soaring out of control. His assessment is sober, starkly critical of government policy, and really rather scary:

Stripping away the complexity, the net effect of subsidies for renewables and taxes on CO2 emissions is to offer an average price for electricity generated from the main sources of renewable energy - wind and wood chips - that is at least double the equivalent pool price of electricity which is determined by the cost of running gas-fired generating plants. The incentive is somewhat lower for new plants but the margin is sufficient to sustain long term costs of wind and wood generation that are 60-80% higher than for the most efficient gas plants. The cost differentials are much greater for offshore wind (at least 150%) and solar photovoltaic panels.

 

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