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Cost of a net-zero world ‘much higher’ than estimated

January 25, 2022

By Paul Homewood

 

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The extra amount the world must spend each year to create a “net-zero” emissions economy is equivalent to half all profits now generated by companies globally, consultancy group McKinsey estimates in a report on the energy transition.

It said its calculation was much higher than most other estimates by economists but emphasised such investments could be lucrative and the long-term costs of not doing enough to tackle climate change would be greater.

“We find that the transition would be universal, significant and front-loaded, with uneven effects on sectors, geographies and communities, even as it creates growth opportunities,” it said.

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Cost Of CfD Subsidies – 2021

January 25, 2022
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By Paul Homewood

We looked at how the CfD system was operating during December yesterday. But we really need to take a step back and look at last year as a whole to get the full picture.

 

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https://www.ofgem.gov.uk/energy-data-and-research/data-portal/wholesale-market-indicators 

During the year, there was as we know a steady rise in prices, with a big jump in the autumn.

CfD Generation 21.7 TWh

Av Strike Price

£143.78/MWh
Av Market Price £97.75
CfD Subsidy £996.6 million

https://www.lowcarboncontracts.uk/data-portal/dataset/actual-cfd-generation-and-avoided-ghg-emissions

The CfD system generated a refund to bills of £83.1m in December,as I explained yesterday, but overall we are still £996.6m worse off.

Meanwhile generators signed up to Renewables Obligation, the system which preceded CfDs, were paid subsidies of £68.56/MWh in the year to Sep 2021. This is, of course, on top sky high revenue for sales of electricity they are now raking in.

New England Will Freeze If Sleepy Joe Gets His Green New Deal

January 24, 2022

By Paul Homewood

 

 Boston temperature

Joe Biden promised to “achieve net zero carbon emissions in the power sector by 2035.”

I’m sure the inhabitants of New England will be over the moon. It’s been a pretty average week temperature wise there and electricity demand is around normal, peaking below the summer air conditioning highs:

Daily peak-hour electricity load in New England

Yet even then wind and solar are only managing to supply 3% of generation. Most of that is solar power at midday.

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Is Wind Power Reducing Our Bills?

January 24, 2022
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By Paul Homewood

h/t KB

There have been headlines that wind power has actually been reducing electricity prices lately, so it is worth taking a look at how the system works, specifically Contracts for Difference (CfDs).

In essence, CfDs are guaranteed, fixed prices, most notably for offshore wind and biomass. (The other energy sources covered are tiny in comparison). They are called Strike Prices.

As with any fixed price system, buyers lose when market prices are low, and win when they are high.

We can take a close look at December 2021, to see the system in operation.

CfD Generation 2.2 TWh
Av Strike Price £143.32/MWh
Av Market Price £184.10/MWh
CfD Subsidy/(Refund) £83.1 million

https://www.lowcarboncontracts.uk/data-portal/dataset/actual-cfd-generation-and-avoided-ghg-emissions

In other words, market prices have been about £40/MWh higher than the strike price, so the generators refund money to the government, which ultimately comes off our electricity bills.

It goes without saying that until the last few months, market prices have been well below that strike prices, and subsidies paid by energy consumers has been typically in the hundreds of millions every month.

It is a stretch, however, to claim that our electricity prices have been “reduced” because of wind and other renewable power. It would be more accurate to say that they have not gone up as much as they would have done otherwise.

Looked at another way, we have been paying a much higher price than we used to, £143.32/MWh, and will continue to carry on paying this ultra high price, index linked of course.

How long market prices stay at current levels is anybody’s guess, of course. But whether they do or not, energy consumers will suffer.

It should also be pointed out that this £83.1m is chicken feed against the renewable subsidies paid out via ROCs, which will cost £550m a month this year.

So our monthly electricity bills are inflated by £550m a month, against which the renewable lobby brags that it gives us £83m back!

Cost of onshore wind has been rising for 20 years

January 24, 2022

By Paul Homewood

 

 

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The analysis, based on audited financial accounts and official generation data, throws into question claims from the wind industry that wind is becoming ever more competitive.

The findings are also another major blow to the government’s Net Zero policy, which will fail without cheap and abundant renewable electricity.

GWPF deputy director, Andrew Montford, said:

“Onshore wind is 60% dearer than the figure in the Government’s plans for Net Zero, making it a nonsense of claims that it is the cheapest form of electricity generation. We are locking high costs into the economy”

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The Eco-Experts!

January 23, 2022

By Paul Homewood

h/t Dennis Ambrose

They call themselves experts!!

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As you may have already spotted, the article includes a couple of howlers:

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EDP Spin Extreme Weather Lies

January 22, 2022

By Paul Homewood

 

h/t Dave Ward

Ozzie farmer has the answer to Norfolk’s “extreme weather”!!

 

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An Australian farmer who has found green ways to grow crops in extreme heat and droughts has given advice to his Norfolk counterparts.

Grant Sims spoke at a virtual online meeting hosted by the Royal Norfolk Agricultural Association and its Yield (Young, Innovative, Enterprising, Learning and Developing) rural business network.

With extreme weather becoming more common in East Anglia, he explained how he has optimised the health and resilience of his soils to cope with the rigours of an Australian summer.

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Removing green levies from energy bills welcomed

January 22, 2022

By Paul Homewood

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London, 22 January — Net Zero Watch has welcomed the government’s apparent decision to remove green levies from energy bills, providing direct relief to hard-hit households and also to industrial and commercial consumers

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Global agency sows fear with misinformation

January 22, 2022
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By Paul Homewood

 

From CO2 Coalition:

 

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A recent report by the World Meteorological Organization claims that there has been a dramatic increase in the number of natural disasters over the last 50 years. According to the WMO Atlas of Mortality and Economic Losses from Weather, Climate and Water Extremes (1970 – 2019), there were more than 11,000 reported disasters attributed to these hazards globally, with just over 2 million deaths and U.S. $ 3.64 trillion in losses.

The report claims that the number of disasters “has increased by a factor of five” since 1970 and that human additions of carbon dioxide are to blame. Referring to this data, WMO Secretary-General Petteri Taalas stated:

“The number of weather, climate and water extremes are increasing and will become more frequent and severe in many parts of the world as a result of climate change. That means more heatwaves, drought and forest fires such as those we have observed recently in Europe and North America.” He further warned: “The warming of the oceans has affected the frequency and area of existence of the most intense tropical storms.”

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Energy crisis bursts green shares bubble

January 22, 2022

By Paul Homewood

 

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The energy crisis has burst a multibillion-pound bubble in green stocks as gas prices surge and the world confronts the true cost of net zero.

Shares in renewable energy companies have tumbled to their lowest level in 16 months, almost completely unwinding gains made during a stampede into companies aiding the shift away from fossil fuels.

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