Govt carbon targets / policy will LOWER energy bills
Discussion
The theory (at least) is that we spend over next 10 to 15 years to develop a lot of low carbon technology (nucs, CCS, renewables) that all have high capex and low variable costs. Should we develop sufficient capacity we'll reduce the exposure to fossil fuel prices and wholesale power prices will begin to fall..... Unfortunately the outcome is predicated on developing sufficient low carbon capacity to disconnect power from fuel prices. I think there is a very real risk that we end up for a period of time in which a) we are paying large subsidies to low carbon generation (much larger than today) and b) we fail to develop sufficient low carbon generation such that power is still set by high gas and carbon prices. Hence - we end up with the worst of both worlds....
pgtips said:
I think there is a very real risk that we end up for a period of time in which
a) we are paying large subsidies to low carbon generation (much larger than today) and
b) we fail to develop sufficient low carbon generation such that power is still set by high gas and carbon prices. Hence - we end up with the worst of both worlds....
Worse still, with so called renewables mostly comprising of wind when the inevitable country wide calm period happens all those standby open cycle gas turbine plants which haven't sold a dot of 'leccy (due to aforementioned windymills) in months, will have to recover their fixed costs over a short time.a) we are paying large subsidies to low carbon generation (much larger than today) and
b) we fail to develop sufficient low carbon generation such that power is still set by high gas and carbon prices. Hence - we end up with the worst of both worlds....
In otherwords they'll have to charge a mint for having sat done nothing for ages and that means when the wind does not blow, the power will be f**king expensive.
(this assumes we're daft enough to let 40% of the grid become wind)
Andy K
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