One of the hidden horrors of Net Zero is the need to pay out very large sums of money for things that were previously free. A recent Government data release reveals an eye-watering case in point. (THREAD)
Back in the olden days, coal fired power stations naturally stabilised the grid. Huge rotating turbines essentially acted as a store of energy – ‘inertia’ in the jargon.
If a power station tripped off the grid, this ‘store’ prevented instantaneous collapse of the whole grid, allowing corrective measures to be put in place.
But now, in our wisdom, we have now closed down all our coal-fired power stations. As a result, the grid is very short of inertia. We now frequently have to pay gas-fired power stations to switch on to provide some. Failure to do so would risk the whole grid collapsing.
Paying gas-fired power stations to switch on is expensive, so grid managers have set up a programme to reduce the costs. This mostly involves paying gas-fired power stations to tick over in the background.
It also involves building flywheels as standalone sources of inertia. They don’t generate any power – we just pay them to sit there, spinning away, so that there is some inertia around in case there is a problem.
Recall that inertia use to be entirely free.
So how much are we forking out? In a recent answer to a question in Parliament, it was revealed that we have spent up to £350 million per year in the Balancing Mechanism – all those units we have paid to switch on to provide inertia. questions-statements.parliament.uk/written-questi…
That figure seems to be dropping – it’s only £83 million in 2023/24. This seems to be the result of the new programme, which is costing around £160 million per year.
So it looks as though we are paying at least £200 million per year for a service that fossil-fuel power stations used to provide for free.
This is just another reason why your electricity bill keeps going up.
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Last week, I noted important new evidence that official estimates of the cost of offshore wind are wildly incorrect, and that Net Zero will therefore be much more expensive than thought. This week, there is more. (THREAD)
Over the weekend, the Neart na Gaoithe (NNG) windfarm produced its first power. It is instructive to look at its financial accounts, the most recent of which are for December 2022.
Claims that Net Zero can be done cheaply all have, at their centre, the same wild prediction. I have just had new evidence that it is completely incorrect. (THREAD)
All these claims cite the prediction of the Department of Energy Security and Net Zero (DESNZ) that offshore windfarms commissioned in 2025 will be extraordinarily cheap, delivering power at £44/MWh, half current market prices. gov.uk/government/pub…
They say windfarms will be much cheaper to build - £1.5m per megawatt, just half the level that has been the norm in recent years.
If you think things are crazy now, wait until you hear how bonkers they are likely to become. (THREAD)
From time to time, the renewables fleet is now generating more electricity than the country needs. When this happens, market prices collapse, and sometimes even go negative.
This is not bad news for windfarms operating on the Contracts for Difference subsidy scheme. They get a payment equal to the difference between the market price and the fixed “strike price” they have agreed with the Government.
Last week, I looked at some of the implications of Ed Miliband’s mad plan to expand the renewables fleet. I’ve now taken the analysis further to see what it might mean for household bills and the rest of Mr Miliband’s plans. This is rather startling. (THREAD).
(The link to the original post is here, for those that missed it).
My fuller estimate of the effect of the plan is that it will raise system costs by £650-700 per household per year, depending on future demand. These figures take in the costs of the generation equipment, operating it, fuel savings on the gas fleet, and increased balancing costs.
It's fun to look at what electricity supply and demand will look like once Labour's bonkers energy plan - double onshore wind, triple solar, quadruple offshore - is in place. (Thread)
I've crudely estimated the Labour Party fleet as 90GW of wind, 42GW solar, plus 6GW nuclear, and assumed a modest rise in demand to 330TWh.
With typical wind conditions (say 2015), the results are horrific.
In this thread, I will try to explain why electricity is going to get much *much* more expensive.
As I’ve said before, there is evidence of some cost reductions for offshore wind – Hornsea 2 and Triton Knoll are the first developments that might have costs below £100/MWh.
(The trend is obscured by the disastrous performances of Moray East and Seagreen, both of which have had severe problems with the cables that bring power to shore.)
But other issues are going to drive costs up in future.