Wind matters

[scotview]

The attached chart from grid watch shows a very nice example of the main issue with current UK energy strategy. Yesterday with storm Malik wind generation was very large. Today with quieter weather, wind generation is significantly less and gas turbine generation is at 41%.
Is this an issue or will it be alright on the night ?

[BullDog]

The attached chart from grid watch shows a very nice example of the main issue with current UK energy strategy. Yesterday with storm Malik wind generation was very large. Today with quieter weather, wind generation is significantly less and gas turbine generation is at 41%.
Is this an issue or will it be alright on the night ?

Unless there's a large step change in the investment going into grid scale energy storage, significant gas fired generation is going to be with us for a very long time indeed. Often, recently during the fairly calm weather we have been having, wind generation has been in low single digit % on the UK grid. At night, solar generation is.............. well, it's zero obviously. 365 days a year.

[GrahamPlatt]

Vattenfall withdraws from Norfolk Boreas field - not profitable due to HMG’s penny-pinching

https://www.theguardian.com/environment ... s-industry

“Offshore wind developers have experienced soaring construction costs as inflation has raged. At the same time, the government has been trying to hold down electricity prices through the contract for difference (CfD) scheme designed to provide investors with certainty over new projects.

For the latest bidding round, which concludes in September, the government set a maximum price of £44 per megawatt hour based on 2012 prices – similar to the previous round that took place before many of the inflationary pressures hit.”

Meanwhile, and in sharp contrast, SSE are powering ahead on the Dogger Bank https://www.theguardian.com/business/20 ... ogger-bank

[BullDog]

Vattenfall withdraws from Norfolk Boreas field - not profitable due to HMG’s penny-pinching

https://www.theguardian.com/environment ... s-industry

“Offshore wind developers have experienced soaring construction costs as inflation has raged. At the same time, the government has been trying to hold down electricity prices through the contract for difference (CfD) scheme designed to provide investors with certainty over new projects.

For the latest bidding round, which concludes in September, the government set a maximum price of £44 per megawatt hour based on 2012 prices – similar to the previous round that took place before many of the inflationary pressures hit.”

Meanwhile, and in sharp contrast, SSE are powering ahead on the Dogger Bank https://www.theguardian.com/business/20 ... ogger-bank

Well done SSE.

What's not so welcome is the word "subsidy". I had thought that off shore wind had matured to the point where it was both the lowest cost as well as subsidy free power generation? Very disappointing hearing taxpayers are still subsidising this industry.

[Itsallaguess]

What's not so welcome is the word "subsidy".

I had thought that off shore wind had matured to the point where it was both the lowest cost as well as subsidy free power generation?

Very disappointing hearing taxpayers are still subsidising this industry.

There's an article in the Times this morning, highlighting that BP are hoping to build two large off-shore wind farms without the need for any UK Government subsidy at all -

BP is considering building two huge offshore wind farms in British waters without government subsidy contracts in what would be a first for the sector.

Bernard Looney, the energy group’s chief executive, said it could start building the Morgan and Mona projects in the Irish Sea as soon as “late next year” and may not seek contracts from the government to guarantee their revenues.

The wind farms together would boast up to 214 turbines about 20 miles off the coasts of north Wales and northwest England and could power 3.4 million homes.

Looney’s comments buck a gloomy mood in the offshore wind industry as it battles soaring costs, with other developers lobbying for increased subsidies and scrapping some projects.

https://archive.ph/KZcab

Two caveats in the detail of the above article are that BP plan on using some of the generated electricity themselves, which implies a level of internal-saving that might go some way to mitigate the loss of any subsidies, and there's also some doubt relating to what's seen as 'ambitious' timescales on these two projects, but even taking those aspects into account, I think that seeing large-scale projects being discussed and planned in these 'subsidy-free' terms is clearly going to be helpful where the public has persistently been sold a promise of cheaper energy for many years now, but has yet to see any 'value' of this local-generation in their pockets...

Cheers,

Itsallaguess

[Urbandreamer]

Two caveats in the detail of the above article are that BP plan on using some of the generated electricity themselves, which implies a level of internal-saving that might go some way to mitigate the loss of any subsidies, and there's also some doubt relating to what's seen as 'ambitious' timescales on these two projects, but even taking those aspects into account, I think that seeing large-scale projects being discussed and planned in these 'subsidy-free' terms is clearly going to be helpful where the public has persistently been sold a promise of cheaper energy for many years now, but has yet to see any 'value' of this local-generation in their pockets...

Cheers,

Itsallaguess

I predict more companies building generation for themselves rather than to supply the grid. After all you don't get windfall taxed on electricity that you don't sell.

I'm less convinced that the "electricity too cheap to meter" promise can be achieved. Indeed while I have invested in UK renewable energy in the past, I'm unwilling to do so now that we have the windfall tax. Lack of investment and additional generation, that's going to bring the price down isn't it?

Subsidies, they are supposed to be incentives aren't they? Taxes, remind me again why fags, booze and sugary drinks are taxed the way that they are. It's supposed to be a disincentive isn't it?

[daveh]

Vattenfall withdraws from Norfolk Boreas field - not profitable due to HMG’s penny-pinching

https://www.theguardian.com/environment ... s-industry

“Offshore wind developers have experienced soaring construction costs as inflation has raged. At the same time, the government has been trying to hold down electricity prices through the contract for difference (CfD) scheme designed to provide investors with certainty over new projects.

For the latest bidding round, which concludes in September, the government set a maximum price of £44 per megawatt hour based on 2012 prices – similar to the previous round that took place before many of the inflationary pressures hit.”

Meanwhile, and in sharp contrast, SSE are powering ahead on the Dogger Bank https://www.theguardian.com/business/20 ... ogger-bank

Well done SSE.

What's not so welcome is the word "subsidy". I had thought that off shore wind had matured to the point where it was both the lowest cost as well as subsidy free power generation? Very disappointing hearing taxpayers are still subsidising this industry.

But is it being subsidised? That will depend on the price of electricity compared to the CfD price. If the price of electricity is above the CfD price the government get the difference.

[GrahamPlatt]

Even community projects failing by the wayside - tax regime responsible

https://www.edie.net/scottish-onshore-w ... osts-soar/