This paper provides a useful explanation of how wind farms in the U.K. are compensated for not operating. Wind projects operating in areas of limited transmission capacity are straining the system and require that they be turned off during periods of low demand but high wind output. £981 was the highest payment for £50 worth of loss. Last fall (2013) the rules were changed to supposedly prevent “excess profit” being made, but even then the average payment for one day was £84/MWh, with the highest being £149/MWh.
Documents filed under Taxes & Subsidies from UK
Editor's Note: The following are selected excerpts from the Renewable Energy Foundation press release describing this research. The full press release is available via the link below. Using the new research it is now possible to assess how renewable generators up and down the country are performing. This data, published in five online files; Biomass, Hydro, Landfill Gas, Sewage Gas and Windpower, shows that firm generators are producing high load factors with carefully designed resource use and load following. However in the wind sector, far and away the most active of all the technologies at present, results vary enormously due to location. The capacities offshore are encouraging, whilst those onshore are generally only superior in locations very distant from the populations requiring the electrical energy. Although most sites were built on expected capacity factors of around 30%, results include; 19% (approx) capacity factor for the wind turbines at Dagenham, Essex. 9% (approx) capacity factor at the Barnard Castle plant, County Durham. The best performing wind sites are in the north of Scotland, and on Shetland the wind turbines are producing capacity factors of over 50%. Using this analysis of the Ofgem data, researchers have also calibrated a model predicting how a large installed capacity of wind power built across the UK would actually perform. The project used Meteorological Office data to model output for every hour of every January from 1994-2006. The startling results show that, even when distributed UK wide, the output is still highly volatile. The average January power variation over the last 12 years is 94% of installed capacity. It is an uncontrolled variation decided by the weather. The average minimum output is only 3.7% or 0.9GW in a 25GW system. Power swings of 70% in 30 hours are the norm in January. The governments’ expectation is that three quarters of the 2010 renewables target, and the lion’s share of the ‘20% by 2020’ target will be made up of windpower. However, the new research offers predictions which are in keeping with Danish and German empirical experience and demonstrate the need for a broader spread of investment in the renewable sector. The report was commissioned from Oswald Consultancy Limited and funded by donation from the green entrepreneur Vincent Tchenguiz. Campbell Dunford, CEO of REF, said: “This important modelling exercise shows that even with best efforts a large wind carpet in the UK would have a low capacity credit, and be a real handful to manage. This isn’t the best way to encourage China and India to move towards the low-carbon economy. As a matter of urgency, for the planet’s sake, we need to bring forward a much broader range of low carbon generating technologies, including the full sweep of renewables. Wind has a place, but it must not be allowed to squeeze out other technologies that have more to offer.”
In the UK, the parallel objective is to generate 10% of the UK’s electricity from renewable sources by 2010. Renewable electricity has become synonymous with CO2 reduction. However, the relationship between renewables and CO2 reduction in the power generation sector does not appear to have been examined in detail, and the likelihood, scale, and cost of emissions abatement from renewables is very poorly understood. The purpose of this report is to analyse a wide range of technical literature that questions whether the renewables policy can achieve its goals of emissions reduction and power generation. To some, renewable energy has the simple and unanalysed virtue of being “green”. However, the reality of this quality is dependent on practical issues relating to electricity supply. ......In conclusion, it seems reasonable to ask why wind-power is the beneficiary of such extensive support if it not only fails to achieve the CO2 reductions required, but also causes cost increases in back-up, maintenance and transmission, while at the same time discouraging investment in clean, firm generation.