A week or so ago, I chaired a legislative committee for a order that would enable the Secretary of State for Energy to have the power to see anonymised bids for wind electricity generation, before he sets the budget for the next auction of contracts, which is due to take place later this year.
It means that the Government will know ahead of time, exactly how much electricity will be procured when he sets the price he is prepared to pay.
It means that the Government will know ahead of time, exactly how much electricity will be procured when he sets the price he is prepared to pay.
The previous allocation round cost the taxpayer a record-breaking £1.5 billion. Everyone in industry thinks the next auction round will be even more expensive. Ministers intend to try and get the price down by guaranteeing it for a longer -up to 20 years.
Either way, it all means more expensive bills for the public—the very opposite of what was promised before the election.
Either way, it all means more expensive bills for the public—the very opposite of what was promised before the election.
The Government’s constant refrain is a soundbite about the ‘rollercoaster of gas prices’ and the need to escape them by replacing our reliance on gas, with more wind.
The reason why ministers are having to pump so much more money into wind contracts is because of its rush to decarbonise the grid within five years. This requires a massive expansion in wind power over the next two auctions, and the result will be higher prices forced on to households and businesses.
The reason why ministers are having to pump so much more money into wind contracts is because of its rush to decarbonise the grid within five years. This requires a massive expansion in wind power over the next two auctions, and the result will be higher prices forced on to households and businesses.
The Office of Budget Responsibility predicts that subsidies, and the hidden costs of renewables, will rise by 60% over the course of this Parliament. Wind is both more expensive and less reliable, yet the Government want more of it, instead of the more reliable energy sources, such as gas.
It is the intensity of the Government’s race to acquire more wind generation, that is driving up its price.
It is the intensity of the Government’s race to acquire more wind generation, that is driving up its price.
Last January, a combination of dark skies and low wind brought Britain to the brink of blackouts. That was avoided only thanks to our remaining gas fleets, which the Government say they want to run down. The Prime Minister has promised categorically that decarbonising the grid by 2030 will not cause any power shortages, blackouts or energy rationing. We’ll have to wait and see.
Nevertheless, In Britain, customers have paid over half a billion pounds already this year for unused power generated by wind, because the electricity grid just hasn’t got the capacity to carry it.
Why the rush?
As I’ve said in this column previously, the most important bit of net zero is the ‘net’: we are bound to be reliant on hydrocarbons for several decades, so we need carbon capture to sequester more carbon than we emit by our continued reliance on hydrocarbons.
In the longer run, I support the objective of transferring to renewable energy, but our current folly is trying to achieve it a break-neck speed which is inflicting households with higher energy bills and rendering our energy-reliant businesses uncompetitive in international markets: it is costing jobs.
Nevertheless, In Britain, customers have paid over half a billion pounds already this year for unused power generated by wind, because the electricity grid just hasn’t got the capacity to carry it.
Why the rush?
As I’ve said in this column previously, the most important bit of net zero is the ‘net’: we are bound to be reliant on hydrocarbons for several decades, so we need carbon capture to sequester more carbon than we emit by our continued reliance on hydrocarbons.
In the longer run, I support the objective of transferring to renewable energy, but our current folly is trying to achieve it a break-neck speed which is inflicting households with higher energy bills and rendering our energy-reliant businesses uncompetitive in international markets: it is costing jobs.