Green Energy Policies raise the Cost of Heating this Winter in the UK

Posted by PITHOCRATES - October 19th, 2013

Week in Review

You can either fight ‘manmade’ global warming or you can have low energy prices.  But you can’t have both (see British Gas to raise prices by 9.2% posted 10/17/2013 on BBC News Business).

British Gas is to increase prices for domestic customers, with a dual-fuel bill going up by 9.2% from 23 November.

The increase, which will affect nearly eight million households in the UK, includes an 8.4% rise in gas prices and a 10.4% increase in electricity prices.

The company said it “understands the frustration” of prices rising faster than incomes. The average annual household bill will go up by £123 [$198.89]…

The company said that the cost of buying energy on the global markets, delivering gas and electricity to customers’ homes, and the government’s “green” levies, were all factors in the decision to put up prices.

With a focus on renewables we bring fewer fossil fuels to market.  Coal, oil and natural gas.  And with the war against clean nuclear power we’re shutting down our reactors.  So instead we focus on the more costly wind and solar power.  Because it takes a lot more costly infrastructure to capture the ‘free’ energy from the sun and the wind.  So much that the taxpayer has to subsidize them.  To bring us that ‘free’ energy.  When the sun is shining and the wind is blowing, that is.  Which brings us to that costly distribution system.

People can put solar arrays on their home to use that ‘free’ solar power during sunny days.  But what about cloudy days?  And night?  Wind farms can generate ‘free’ wind power when the winds are blowing right.  But what about when they are not blowing right?  Either too fast?  Too slow?  Or not at all?  What then?  Fossil fuels.  That’s what.

Baseload power (typically coal that takes hours to bring on line) is a funny thing.  To be cost effective power plants run at full capacity 24/7.  When demand rises they can bring on some ‘peaker’ units (typically gas that are quick to bring on line) to add additional capacity.  So power companies have to maintain baseload power even if the people aren’t buying any to be available when solar and wind aren’t.  And if all the homes disconnected from the grid and ran on solar power during the day the power companies would still have to keep them physically connected to the grid.  So these homes can use their power at night.

This is why energy prices are rising.  Revenue at power companies are falling due to that ‘free’ wind and solar power while their expenses are not.  And because they are selling to fewer customers they have to charge them more to cover their expenses.

Affordable energy for the people lies with fossil fuels.  Not renewables.  Governments have to choose.  All the people.  Or their liberal base.  Less costly power from fossil fuels.  Or more costly power from renewables.  It’s that easy.  For you can fight ‘manmade’ global warming or you can have low energy prices.  You just can’t have both.

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The Cost and Unreliability of Renewable Energy may give Nuclear Power a Reprieve in Germany

Posted by PITHOCRATES - June 24th, 2012

Week in Review

Thanks to global warming the Germans have an expensive future ahead of them (see Don’t mention the atom posted 6/23/2012 on The Economist).

WHEN Germany decided a year ago, after the Fukushima disaster, to phase out nuclear energy by 2022, economists were worried. Would the country be able to replace its 17 nuclear plants, which supplied 23% of its electricity in 2010, with renewable forms of energy? Would electricity prices go through the roof? Would the move endanger Germany’s industry?

It will be years before the answers are known for sure. But the Energiewende, as Germans call the energy U-turn, has already produced one certainty: the country’s four giant power companies, which were already compelled last year to shut eight of their nuclear plants for good, are among the big losers. And their fate may revive heretical thoughts of a reprieve for atomic power…

In the meantime, thousands of subsidised wind farms and solar arrays are hobbling the earning-power of conventional power stations. The midday peak, when the giants used to command premium electricity prices, is undercut by solar power. Winter winds whip away the margins that big, inflexible plants used to enjoy.

To add insult to injury, consumers and power-hungry industries still expect the power utilities to take up the slack when sun and wind are idle. Last February, with all the active nuclear plants working at full capacity, Germany’s energy producers were only just able to keep the lights on…

Various estimates say the U-turn will push up consumer prices by between 20% and 60% by 2020. What is more, to encourage investment in new conventional power stations, extra subsidies may be needed to reward standby capacity or stored power reserves.

Subsidized wind farms and solar arrays are eating into the profits of the big power producers by providing power at peak times that the big power producers used to charge a premium for.  Yet in February with all active nuclear plants working at full capacity they were barely able to keep the lights on.  So wind farms and solar arrays are producing so much power that it reduces the amount of power the conventional plants can sell.  Yet these same plants working at full capacity can barely keep the lights on in February.  Interesting.

When 23% of their power production goes off line it will take an enormous expenditure to replace that power with clean renewable energy.  So much so that electric rates will increase between 20% and 60%.  Interesting.

Because of the unpredictable nature of the wind and the sun they will have to build standby power capacity and power storage facilities.  Presumably to produce and store a surplus of electricity when the wind blows and the sun shines so they can use it when the wind doesn’t blow and the sun doesn’t shine.  Interesting.

Poor Germany.  To save the planet they will have to reduce their citizens to serfs.  Their government will tax them so much for all of this renewable energy that they will leave little for the German taxpayer to bail out the Eurozone.  Let alone leaving anything for themselves.  The Germans are an industrious people used to sacrifice (they paid a heavy price to join East Germany with West Germany after the fall of the Berlin Wall).  But there must be a limit to their self-sacrifice.  Just how much more will their government ask of them?

Even if they suck it up and pay most of their income in taxes they will have little left to engage in economic activity.  Which may result in a recession.  And growing budget deficits.  For as economic activity falls so does tax revenue.  Because there’s just less economic activity to tax. 

Energiewende.  This current path cannot end well for Germany.  Or Europe.

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The Australians raise Electric Bills to pay for Solar Panels and to Punish Carbon Sinners

Posted by PITHOCRATES - June 16th, 2012

Week in Review

The ‘dangerous rise’ in global temperatures roughly corresponds to our actions to lower global temperatures.  In particular our attack on coal.  First we put scrubbers on our coal-fired power plants.  Then we turned to shutting them down in favor of renewable energy.  Which may have been a mistake.  For those coal-fired power plant emissions actually cooled the planet.  Thanks to the soot, ash and sulfur they threw into the atmosphere.  Like a bunch of tiny volcanoes.  Which have been blamed for some cooling spells that have led to famines.  Because all of that soot, ash and sulfur in the atmosphere kept the sun from heating the planet.  And shortened growing seasons.  But this knowledge hasn’t changed anything.  Because the attack on coal is good for government coffers (see Renewables blowout as wind, solar hit harder than tax by Sid Maher and Michael Owen posted 6/16/2012 on The Australian).

SUBSIDIES for rooftop solar panels will cost consumers about $2.3 billion over the next year as the combination of a federal government solar subsidy program and state government feed-in tariffs add about $140 a year to household power bills.

The figures emerged as the South Australian government’s electricity regulator yesterday announced an 18 per cent rise in electricity prices for the state’s households, with the cost of the state’s solar feed-in tariff scheme outstripping that of the carbon tax. State and federal governments are facing calls for reform of the schemes as they are driving electricity prices higher, in addition to the increases associated with the carbon tax.

That’s billion with a ‘b’.  That’s a lot of money to spend.  And governments just love spending money.  So what if it raises our electricity prices?  As far as they are concerned burning coal is as bad as smoking a cigarette.  And this is just a sin tax for everyone.  For the sin of being human.  And taking control of our environment to create the modern world.  Which the environmentalists disapprove of.  We belong in caves.  Hunting and gathering like our ancestors.  Well, gathering, at least.  For the environmentalists would rather we coexist with our fellow animals.  Share our pristine environment.  And not eat them.  Of course, that wouldn’t stop them from trying to eat us.  But that would be okay.  For they could take control of their environment.  As long as they don’t burn coal.  Or are overly flatulent.  Because too much methane released into the atmosphere could raise global temperatures, too.

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