{"id":341631,"date":"2024-09-05T13:30:16","date_gmt":"2024-09-05T11:30:16","guid":{"rendered":"https:\/\/climatescience.press\/?p=341631"},"modified":"2024-09-05T13:30:19","modified_gmt":"2024-09-05T11:30:19","slug":"this-is-not-leading-the-world-its-economic-suicide","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=341631","title":{"rendered":"This is not \u2018leading the world\u2019. It\u2019s economic suicide"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

It matters, as you\u2019ll soon be required to have electric heating and an electric car<\/em><\/strong><\/p>\n\n\n\n

This morning the Government announced the results of the latest round of bids for renewable generation capacity<\/a>.  What does a \u2018round of bids\u2019 mean?<\/p>\n\n\n\n

The way the system currently works is unlike normal capital investment. In almost every other large capital project, investors take the risk of the price and demand for their project.\u00a0 This is true when, say, a manufacturer builds a new plant, and (obviously) when a developer builds a new estate of homes \u2013 the builder has to sell the homes to householders to get their return! The Telegraph<\/a> has the story.<\/em><\/strong><\/p>\n\n\n\n

Investors commit their money because they believe that they will get a good return on their investment, but they can\u2019t be sure.  So investors have to accept the risk that investing involves, and in return they sometimes, but not always, get higher returns than are available in secure investments like Government bonds.<\/p>\n\n\n\n

For wind and solar powerplants in UK jurisdictions, a different regime applies.  Investors are offered a guarantee from the Government<\/em> of both the price, and the amount, of electricity that they will be able to sell.<\/p>\n\n\n\n

How do these guarantees work?<\/p>\n\n\n\n

Firstly, the amount. The amounts of electricity that wind and solar farms produce are obviously highly dependent on the wind blowing and the sun shining. This, by the way, is a major headache for the grid managers<\/a>, because this is unpredictable and electricity is always needed and cannot be stored at grid scale. So what the Government has done is insist that Grid managers must take all the electricity that renewable sources produce, whether or not there are cheaper alternatives and regardless of whether that much electricity is actually needed at the grid at the time it is generated. (If the grid literally cannot accept the renewable energy generated, the renewable powerplants turn down or shut off \u2013 but still have to be paid as if they were running as hard as possible.)<\/p>\n\n\n\n

In effect, the Government has said \u201cwe will take all the electricity that you can deliver\u201d.  The loser from this is gas power stations, who are pushed aside by renewable suppliers until calm, dark or cloudy conditions return. Then they are required to replace all the missing electricity. This has the effect of making gas generation much more expensive than it should be, as there has to be a tremendous amount of gas capacity sitting unused for much of the time. Suddenly turning gas plants on and off all the time also increases maintenance costs.<\/p>\n\n\n\n

Secondly, the Government guarantees the price of electricity that renewables produce. They don\u2019t do this for gas generators, who have to live with the \u2018market price\u2019 of electricity, which is highly variable.  In this latest round (called \u2018AR6\u2019), the Government secured new renewables investment at prices which for offshore wind are around 30 per cent higher than the average market prices in 2024.  For floating offshore wind plant, not built on the sea bed<\/a>, the price the Government has guaranteed is a staggering 200 per cent higher than the market price.  Prices significantly higher than market prices were also awarded to solar and onshore wind projects.<\/p>\n\n\n\n

All these extra margins get added to electricity bills. And there\u2019s more.<\/p>\n\n\n\n

Read the full story here<\/a>.<\/em><\/strong><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

This morning the\u00a0Government announced the results of the latest round of bids for renewable generation capacity.\u00a0 What does a \u2018round of bids\u2019 mean?<\/p>\n

The way the system currently works is unlike normal capital investment. In almost every other large capital project, investors take the risk of the price and demand for their project.\u00a0 This is true when, say, a manufacturer builds a new plant, and (obviously) when a developer builds a new estate of homes \u2013 the builder has to sell the homes to householders to get their return!<\/p>\n","protected":false},"author":121246920,"featured_media":341635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691824443,691819630,691818181,691819121],"class_list":{"0":"post-341631","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-electricity-bills","9":"tag-energy-crisis","10":"tag-renewable-energy","11":"tag-wind-and-solar-power","13":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0rr4bm6jbyo8z008jvajx6oexn.jpg?fit=1386%2C780&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1qSb","jetpack-related-posts":[{"id":277959,"url":"https:\/\/climatescience.press\/?p=277959","url_meta":{"origin":341631,"position":0},"title":"Net Zero Offshore\u00a0Wind","author":"uwe.roland.gross","date":"09\/09\/2023","format":false,"excerpt":"The Government has today announced the results of the fifth auction of Contracts for Difference (CfD) subsidies for renewable electricity generation. Its has been a failure, and may represent a landmark moment for renewables policy.","rel":"","context":"In \"Contracts for Difference (CfD)\"","block_context":{"text":"Contracts for Difference (CfD)","link":"https:\/\/climatescience.press\/?tag=contracts-for-difference-cfd"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00a3aa69de31bae906426ee521673552a7.jpeg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":292321,"url":"https:\/\/climatescience.press\/?p=292321","url_meta":{"origin":341631,"position":1},"title":"Britain\u2019s Net Zero Disaster and the Wind Power Scam","author":"uwe.roland.gross","date":"22\/12\/2023","format":false,"excerpt":"\u201cThis is not about complicated issues of cryptocurrency,\u201d assistant U.S. attorney Nicolas Roos\u00a0declared\u00a0in the Sam Bankman-Fried trial, after accusing the defendant of building FTX on a \u201cpyramid of deceit.\u201d Much the same can be said about the foundations of Britain\u2019s net zero experiment. Energy is complicated, and electricity is essential\u2026","rel":"","context":"In \"Britain\u2019s decarbonization\"","block_context":{"text":"Britain\u2019s decarbonization","link":"https:\/\/climatescience.press\/?tag=britains-decarbonization"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/f41a3e8996fcb3b36ebd05b9e83e3b64.jpg?fit=1200%2C632&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/f41a3e8996fcb3b36ebd05b9e83e3b64.jpg?fit=1200%2C632&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/f41a3e8996fcb3b36ebd05b9e83e3b64.jpg?fit=1200%2C632&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/f41a3e8996fcb3b36ebd05b9e83e3b64.jpg?fit=1200%2C632&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/f41a3e8996fcb3b36ebd05b9e83e3b64.jpg?fit=1200%2C632&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":253758,"url":"https:\/\/climatescience.press\/?p=253758","url_meta":{"origin":341631,"position":2},"title":"Govt Quietly Drops Promises Of Cheap Renewable Energy","author":"uwe.roland.gross","date":"20\/04\/2023","format":false,"excerpt":"Government seeking views on introducing Contracts for Difference reforms rewarding applicants for including factors not only based on price in projects.","rel":"","context":"In \"Contracts for Difference\"","block_context":{"text":"Contracts for Difference","link":"https:\/\/climatescience.press\/?tag=contracts-for-difference"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/01568988606501.webp?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/01568988606501.webp?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/01568988606501.webp?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/01568988606501.webp?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/04\/01568988606501.webp?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":287316,"url":"https:\/\/climatescience.press\/?p=287316","url_meta":{"origin":341631,"position":3},"title":"Scorched Earth: Subsidised Wind & Solar Wreaking Economic Havoc\u00a0Everywhere","author":"uwe.roland.gross","date":"09\/11\/2023","format":false,"excerpt":"The renewable energy industry is in full collapse mode this week. 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In the lead up to the Federal election\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/0snap-at-salma-2.webp?fit=808%2C515&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/0snap-at-salma-2.webp?fit=808%2C515&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/0snap-at-salma-2.webp?fit=808%2C515&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/0snap-at-salma-2.webp?fit=808%2C515&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/341631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=341631"}],"version-history":[{"count":5,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/341631\/revisions"}],"predecessor-version":[{"id":341637,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/341631\/revisions\/341637"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/341635"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=341631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=341631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=341631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}