Nuclear Power is Green but Governments prefer Wind Power because its More Costly

Posted by PITHOCRATES - November 30th, 2013

Week in Review

To save the world from global warming we have to go to a low-carbon energy economy.  Say goodbye to coal.  And hello to solar.  And wind (see Energy firm RWE npower axes £4bn UK windfarm amid political uncertainty by Terry Macalister posted 11/25/2013 on The Telegraph).

Britain’s green ambitions have been dealt a blow as a big six energy company has pulled the plug on one of the world’s largest offshore windfarms, with the political storm enveloping the industry threatening the multibillion-pound investments needed to meet emissions targets and head off a looming capacity crunch.

Weeks after warning that the government was treating environmental subsidies as a “political football”, the German-owned RWE npower is pulling out of the £4bn Atlantic Array project in the Bristol Channel because the economics do not stack up.

The move comes as figures show that energy firms reaped a 77% increase in profits per customer last year, due to bill increases that the big six say are partly due to government green levies…

The Renewable Energy Association (REA), which lobbies for more low-carbon power, said government infighting over subsidies was causing deep uncertainty in the industry…

“We need assurances from George Osborne in the autumn statement about where we stand,” said a spokesman for the REA. “Nick Clegg says one thing about the green levies, Michael Fallon [the energy minister] another…”

RWE indicated that the government might have to raise green subsidies – and thus increase bills or the burden on the taxpayer – after admitting that technical difficulties had pushed the price up so far that it could not be justified under the current subsidy regime.

But RWE has already pulled out of a £350m nuclear-power project, is selling its DEA North Sea oil business and last week disposed of part of its UK gas and electricity supply arm. Developers have been warning for some time that they would need more subsidies from the government if ministers were to realise low-carbon energy targets.

RWE was in partnership to build that nuclear project.  Which cost in total £696m.  Or 17% of the cost of the £4bn Atlantic Array project in the Bristol Channel.  Which they say will power one million homes.  Of course, that would be only when the wind is blowing.  But not blowing too fast.  For there is a small window for safe wind speeds these turbines can generate power at.  Giving them a low capacity factor (the amount of power they could produce over a period of time at full nameplate capacity and the actual power they produced over that period).  About 30% in Britain.  Whereas nuclear power is about 90%.  Which is why we use it for baseload power.  Because it’s always there.  Even when the wind is blowing too slow.  Or too fast.  So that Atlantic Array wasn’t going to provide reliable power for a million homes.  In fact, on a calm day it will provide no power to any home.  Which begs the question why spend £4bn for unreliable power when you can spend £696m for reliable power?

Worse, wind power requires government subsidies.  So much that companies won’t build wind farms unless they get government subsidies.  Something you don’t need to build a nuclear power plant.  And to rub salt in an open wound those subsidies are paid for with levies on the family utility bill.  Or higher taxes.  Forcing these families to get by on less.  While these green energy firms are seeing rising profits.  Because of the money the government takes from the households and gives to the green energy firms in the form of subsidies.  Which begs another question.  Why charge the British people so much more for clean energy when they can get it for far less from nuclear power?  At 17% of the cost for the Atlantic Array project?

When it comes down to it renewable energy is crony capitalism at its worst.  Huge transfers of money from the private sector to the public sector.  Where they turn around and give to their friends in green energy companies in the form of lucrative contracts and fat subsidies.  After taking some off the top for their expenses, of course.  If it wasn’t they’d be building less costly and more reliable nuclear power plants to be green.  Instead of building these green elephants all over the place.

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