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Tax Breaks & Subsidies and UK
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Gradually, the message is beginning to sink in. With wind farms already growing in unpopularity, people are now waking up to the gigantic scale of the rip-off being perpetrated. As more and more people begin to understand this, it should only be a matter of time before the whole programme crashes and burns.
But, there is one minor problem ... wind energy is an EU-supported obsession. To stop the scam, we have to confront the EU. Is there a politician brave enough to do this?
Also filed under [
Energy Policy]
The reaction of environmentalists to these developments shows how apparently strong principles can be set aside in favour of certain right-on technologies. Try to sink one 15,000 tonne oil platform in the North Sea (as Shell attempted with the Brent Spar platform in 1995) and Greenpeace will vilify you, but announce a plan to plant 7,000 concrete and steel pylons - each weighing 2,000 tonnes - on the seabed and you will be an eco-hero.
The great wind scam's profitability is equalled only by its futility
February 9, 2008 in The Telegraph
February 9, 2008 in The Telegraph
It is six years since I first referred here to "the great wind scam" - the bonanza enjoyed by the developers of wind turbines, thanks to the hidden subsidy we all give them through our electricity bills. Under the Government's Renewables Obligation, they receive twice as much for such electricity as they produce as the owners of conventional power stations: a 100 per cent top-up which makes our wind energy the most heavily subsidised commodity in history.
Few might guess, from the two-dimensional reporting of these plans in the media, just what a gamble with Europe's future we are undertaking - spending trillions of pounds for a highly dubious return, at a devastating cost to all our economies.
The targets Britain will be legally committed to reach within 12 years fall under three main headings. Firstly, that 15 per cent of our energy should come from renewable sources such as wind (currently 1 per cent). Secondly, that 10 per cent of our transport fuel should be biofuels. Thirdly, that we accept a more draconian version of the "emissions trading scheme" that is already adding up to 12 per cent to our electricity bills. The most prominent proposal is that which will require Britain to build up to 20,000 more wind turbines, including the 7,000 offshore giants announced by the Government before Christmas. To build two turbines a day, nearly as high as the Eiffel Tower, is inconceivable. What is also never explained is their astronomic cost.
Also filed under [
Energy Policy]
If you thought the 2008 presidential race was shattering all records for windy rhetoric, it's nothing compared to the political eco-rhetoric being spun to US taxpayers -- to get them to cough up billions of dollars to fuel a renewable wind power industry boom sensible investors won't touch with a turbine's rotor blade. ...Wind power sounds a great European success story -- one to be echoed in the US, it seems, as 2008 is set to see wind power developments shatter records for the fourth consecutive year. However, a closer look at the European "success" story reveals that all is not quite as it seems. Wind seems to be blowing in the mind of the politically correct and those on the recent environmentalist bandwagon but the cost is going to be huge, no companies will plunge into it without massive government subsidies and, if actually built, power reliability will take a nosedive. ...The bottom line is that the renewables debate, and investment in it, is as much about ideology and political belief as it is about economics and environmental issues. When the real cost of turbine power as a major player toward our future power needs is assessed, the answer just ain't "blowing in the wind".
When there is considerable debate over future financial prospects of an industry, it's hard to argue over the present value of an asset.
But some Scottish & Southern Energy investors are bound to raise eyebrows over the €1.46 billion it's just paid for wind-farm operator Airtricity.
After all, it costs roughly £1 million/MW to set up a modern windmill. Airtricity has 600 MW of assets built up and permission to build another 963 MW of assets. Which means that if Scottish & Southern had set up the mills on its own, it would have cost roughly £1.6 billion. In buying Airtricity, it's now likely to end up paying nearly £3 billion. Scottish & Southern has warned investors the deal won't enhance earnings until 2011.
Scottish & Southern's problem is the scarcity value of wind-power assets as the EU's energy policy makers have set a renewable-energy target of 20 per cent of total supply by 2020. The UK has a self-imposed target of 10 per cent by 2010.
Also filed under [
General]
JEFFREY Corrigan of Broadview Energy company (letters, October 5) should tell us how many megawatts of electricity the proposed turbines at Westnewton will produce.
It is high time these energy company representatives stopped all their "spinning" about how many houses will be supplied by these industrial monsters.
Also filed under [
Impact on Landscape|
Impact on People]
Millions of pounds of subsidy is pouring into the coffers of multinational energy companies while grave doubts remain about how much renewable energy is actually being produced and how best it can be fed into the national grid. No account is being taken of the damage being done to the finest wild landscapes of western Europe, the consequences for the Scottish tourist industry or the visual impact of enormous wind turbines on local communities and outdoor recreation interests.
Also filed under [
General]
Driven by concerns about climate change and security of electricity supply, public and political commitment to renewable energy has never been stronger.
Generous financial support and market interventions have encouraged extremely rapid deployment in many European states and it is now a commonplace of the financial press that environmental business has become mainstream.
And so it should. But some are now asking whether this rapid growth, and politically-driven target setting at local and national level, is creating a secure position for environmental technologies, one grounded in the realistic perspectives of engineering and science, or, on the other hand, a mere flash in the pan caused by speculative, subsidy-hunting developments.
A wealth of data about the renewable energy experiment worldwide, and particularly in Europe, is now slowly emerging, allowing decision makers to evaluate the success of their policies. These results, as you would expect of real-world data, are mixed, and as we all get to grips with the implications, a change in the way the renewable energy sector operates is likely.
Also filed under [
General|
Energy Policy]
It is 20 months now since British Airways proudly announced a new scheme to deal with climate change: for the first time, passengers could offset their share of the carbon produced by any flight by paying for the same amount of carbon to be taken out of the atmosphere elsewhere. "I welcome warmly this move from BA," said the then environment minister, Elliot Morley.
And how much carbon has BA offset from the estimated 27m tonnes which its planes have fired into the air since that high-profile moment in September 2005? The answer is less than 3,000 tonnes, less than 0.01% of its emissions - substantially less than the carbon dispersed by a single day of its flights between London and New York. The scheme has been, as BA's company secretary, Alan Buchanan, put it to a House of Commons select committee earlier this year, "disappointing".
Also filed under [
General]
Declaring that climate change is a real and serious threat won't raise too many eyebrows these days. But where the debate really starts to warm up is in asking how much energy consumers should pay towards eradicating the threat of climate change.
Soundings by Ofgem suggest that most people expect a reduction in emissions to come at a price. What's not clear is whether the amount people anticipate paying will match what they may be asked to pay.
Also filed under [
General|
Energy Policy]
Energy has a price - as consumers we are painfully aware of it when the gas bill surges or the cost of a litre of petrol catches us by surprise.
When it bites our wallets we tend to blame oil companies, Middle Eastern sheikhs or Russian oligarchs, depending on prejudice or the last news headline.
Less understood is the political price of energy, but it was the hidden message in the reams of paper published yesterday by Alastair Darling, the Secretary of State for Trade and Industry.
For years the Government ignored the warnings about crumbling nuclear plants and the need to scrap dirty coal power stations.
Finally someone has grasped the uranium fuel rod.
Also filed under [
General|
Energy Policy]
So I'm afraid wind turbines on the Assynt Foundation land will do three things: destroy the iconic scenery, destroy the environment and divide the community.
The one thing they might do in addition is make (subsidy) money, which is what all wind farm developers really want.
Don't come up with the lame excuse of global warming. Say it straight. It's the money.
Also filed under [
General]
Now, here's where profit pushes its ugly snout into the trough ahead of the needs of the environment: to encourage renewable energy generation, the Government (using our money) pays the generator a guaranteed subsidy, currently around £35 per megawatt hour (MWh).
With the scramble among suppliers to buy these ROCs to fulfil their obligation, the most recent price at auction - yes, there's even an eBay-style auction site selling packets of renewable power - was a whopping £46. Now, given that the wholesale price of all electricity is currently about £45, that plus the subsidy doubles the value of wind electricity to more than £90 per MWh.
Given that sort of return, those generator boys are - if you'll pardon the expression - cooking with gas.
After all, at that price the sort of 120m high mast mooted for dozens of Northumberland sites currently seeking planning permission is calculated to be worth £400,000 a year per turbine to the generating company.
Perhaps something more practical than the prospect of quick and plentiful profits should be proffered before we kiss goodbye to the most beautiful landscape in England?
Also filed under [
General|
Energy Policy]
Toynbee considers the Renewable Energy Foundation "an anti-wind outfit". We are not. We have consistently argued for offshore wind, among other technologies, to be made more attractive, and for a secure role for the renewables sector. Renewables have much to offer in tackling our energy crisis, but undiscerning enthusiasm, and an unwillingness to recognise the problems arising from a defective subsidy system, won't help anyone.
Also filed under [
General|
Energy Policy]
Two letters referred to a visit by councillors to see Al Gore's film An Inconvenient Truth (Gazette, December 7 and 14).
Is it not also an inconvenient truth that the Renewable Obligation Certificates (ROCs) have never been fully explained to the public, who pay for them?
Also filed under [
General]
The real message of the REF reports, however, is, first, that wind is so unreliable that we would have to build up to a dozen new conventional power stations just to provide backup for all the intended turbines when the wind is not blowing; and, second, that the more we depend on the unpredictable wind, the more this will destabilise the grid, threatening its breakdown.
This was confirmed by another recent report, from UCTE, Europe’s principal grid authority, on the power failure that blacked out much of western Europe on November 4. A significant factor in that collapse of the grid was the growing difficulty of accommodating Germany’s dependence on 18,000 turbines for 6 per cent of its power.
Also filed under [
General|
Energy Policy]
This demanding work is carried out by the MoD at no charge to the developer. Since the beginning of this rush for wind the MoD have received about 4500 applications and this year it is running at between 70 and 100 per month. They all have to be assessed, and many of these will be re-assessed so the work is enormous.
Also filed under [
General]
May I draw attention to two relevant issues in the wind energy debate.
August 30, 2006 in Teesdale Mercury
August 30, 2006 in Teesdale Mercury
May I draw attention to two relevant issues in the wind energy debate:
1) Radar and 2) Renewable Obligation Certificates.
...neither ScottishPower nor energy minister Allan Wilson bothered to mention that it will cost electricity users more than £700,000 a week (£38m per year) in subsidies (equivalent to £190 per "household" per year).
Also filed under [
General]