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‘Obscene’ windfarm subsidies revealed-GWPF

April 16, 2021

By Paul Homewood

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GWPF research has shown that just six offshore windfarms are now sharing £1.6 billion pounds in subsidies between them every year. Three receive annual subsidies of over a quarter of a billion pounds each year. On a single day in April last year, Hornsea 1 received a subsidy payment of nearly £1.5 million pounds.

UK offshore windfarm subsidies 2020

The level of subsidy is sufficient to cover the construction cost of these windfarms in just six or seven years, meaning that future payments will represent almost pure profit for the operators.

The cost of the Contracts for Difference regime is accelerating, and rose by £0.7 billion last year alone, reaching £2.3 billion in 2020. Consumers are already paying out £6 billion under the Renewables Obligation and another £1 billion under the Capacity Market.

Direct subsidies therefore amount to an annual payment from each household of £350, a sum that is rising by at least £25 per year. 

Wind payments CFDs

There are further bills to pay too, because windfarms are causing destabilisation of the electricity grid. The cost of the Balancing Mechanism, which deals with grid imbalances, is rising rapidly, costing each household £65 per year, a figure that is rising at a rate of £20 per year.

And the consumer is having to pay for upgrades to the electricity grid too.

Lord Lawson, GWPF director, said:

We are in the middle of an economic crisis and consumers are hit with astronomical costs for unreliable wind energy. These multi-billion subsidies are not only a massive transfer of wealth from the poor to the rich, but are damaging the UK economy as a whole. This madness has to stop.”

Dr Benny Peiser said:

The level of handouts is an obscenity. Every time a new windfarm comes on stream, the consumer is hit with a double whammy – a relentless increase in annual subsidy payments to windfarm operators and an annual bill for fixing the damage that is done to grid stability. This can’t be kept hidden for much longer. The chickens are coming home to roost very soon, and there will be a big political price to pay”.

https://www.thegwpf.com/high-wind-subsidies/

29 Comments
  1. theolderguvnor permalink
    April 16, 2021 6:43 pm

    And all the while the reason for these interrupters to stop a rise in CO2 is completely unfounded:
    https://wattsupwiththat.com/2021/04/16/eia-u-s-co2-emissions-declined-11-in-2020-no-change-in-rising-atmospheric-carbon-dioxide/

  2. markl permalink
    April 16, 2021 6:45 pm

    Yet the MSM continues to push the “cheapest form of energy generation” for renewables. Do they think people are that stupid that they don’t realize their energy bills are going up in direct proportion to the amount of sun and solar power being installed? And it’s not as if it’s an investment in infrastructure but quite the opposite. Just keeping up with the solar and wind hardware replacements and not counting on additions is an economic losing proposition.

    • Harry Passfield permalink
      April 16, 2021 8:17 pm

      Do they think people are that stupid…?

      Of course they do. And, to be be honest, many are – because some have not been ‘educated’ and others cannot be.

    • Adam Gallon permalink
      April 17, 2021 7:32 am

      People don’t realise it. They’re continually told that wind & solar are cheap & thus their bills going up, are purely due to the energy companies ripping us off.

      • In The Real World permalink
        April 17, 2021 10:22 am

        This site is quite good for showing the price that is being paid to unreliables generation .https://www.lowcarboncontracts.uk/cfds
        Ignoring the fake ” Strike Price ” for generators which are not yet online , it shows that most offshore winds farms are paid something like £160 to £180 per MWh . And the wholesale grid price is usually between £25 to £45 per MWh ..
        So they are being paid about 5 times more than the value of the energy they are producing .
        And then the Nat Grid is spending , [ last figure I saw } £230 Million for synchronous set ups to stabilise just 5 % of the wind generated capacity so that it can be used without making the grid fail .

        The whole wind / solar generation scam is insanity , but most people do not actually realise it .

  3. Joe Public permalink
    April 16, 2021 6:58 pm

    Capturing the energy from free wind and transmitting it to our shores costs us consumers a large fortune.

  4. April 16, 2021 7:28 pm

    It will take extensive power cuts before most consumers realise that they have been ripped off whilst what used to an affordable and reliable electricity supply has been destroyed by the econuts in successive governments. One thing is certain – they won’t hear about this from the legacy media. Will Harrabin mention it? Not a chance.

  5. April 16, 2021 7:52 pm

    Here’s an idea for the Chancellor of the Exchequer. It has been used before (specifically introduced by the Labour Government in 1997). It is called a ‘windfall tax’. It was used to tax excessive profits by energy companies. It is even named properly and could be used as a tax on windfarm owners every year. It would raise £billions every year which could be used to slash electricity prices. Does anybody know a lobbyist who has a direct line to Riki Sunak?

    • Mack permalink
      April 16, 2021 10:39 pm

      There is a dodgy geezer called Dave, who’s just been made redundant so I’ve heard, who might be able to help you, but I’ve also heard that his father in law trousers a few bob every year from bird and bat chompers, so he might feel a bit conflicted. Having said that, I suspect that the level of his confliction will depend upon the quantity of silver that crosses his palms. I did know a bloke called Boris once, who used to think that global warming was a complete scam and might have been useful to you, until he worked out that his future personal prosperity relied upon him denying everything that he once knew to be true. There seems to be a lot of political whores out there at the moment making hay as fast as they can before the AMO and PDO turns negative and the whole global warming scam blows up in their faces. It’s only a matter of time.

      • Chaswarnertoo permalink
        April 17, 2021 7:52 am

        Yep.

    • April 17, 2021 10:30 am

      You would think that Lord Lawson would have the contacts. But perhaps he’s not welcome at the high table any more as he speaks common sense?

    • It doesn't add up... permalink
      April 17, 2021 1:14 pm

      I believe the contracts guarantee there will be no windfall taxes.

  6. MrGrimNasty permalink
    April 16, 2021 8:26 pm

    And take a look at wind performance over the last 7 days! Pathetic.

    • StephenP permalink
      April 17, 2021 7:45 am

      Keep a look at http://www.gridwatch.templar.co.uk to see what the amount of electricity has been generated over the past 10 days. How much has been paid for a non-delivery of electricity?
      Then have a look ar http://www.metcheck.com to see the forecast wind speeds forecast for the next 16 days. Not much improvement, so it looks as if we will have the best part of a month with negligible production from wind.
      What is the value of the electricity produced from wind over this period? (At gas fired generation costs.)
      How much have we paid the companies during this period?
      What prospects for the future? I can’t see batteries providing an answer.

  7. Devoncamel permalink
    April 16, 2021 10:16 pm

    When the great and good convene in Glasgow later this year for their mutual appreciation and virtue signalling shin dig somebody should deliver an invoice on behalf of taxpayers and households for all the subsidies.

  8. Devoncamel permalink
    April 16, 2021 10:24 pm

    Drax deserves a special mention for its impressive carbon neutral forest stripping operation. It cleaned up to the tune of £832M in subsidies in 2020.

    • Chaswarnertoo permalink
      April 17, 2021 7:54 am

      Can’t blame them for making money out of stupid politicians. That’s the purpose of a business. Blame the morons who set it up that way.

  9. Nicholas Lewis permalink
    April 16, 2021 10:50 pm

    Looked up Dudgeon, as a more established generator, accounts and in 2019, the previous year to above, they got £202m CfD and £57m for power sold. They also note in the accounts they paid a dividend of £65m and that’s after all the fiddle costs of depreciation and decommissioning costs being used to financially engineer down their tax liabilities. These companies are already a cash cow whether there generating or not.

  10. Cheshire Red permalink
    April 17, 2021 9:02 am

    The public are reasonably aware their energy is costing more, but they don’t see it as a primary reason to shift their vote because all parties with any chance of being elected are in ‘low carbon’ policy agreement.

    So this side of a series of nationwide blackouts I don’t see anyone in government ‘paying a political price’ at all.

  11. Mad Mike permalink
    April 17, 2021 10:05 am

    Just had my price change notification from my electricity supplier. Guess what? Its an increase. i must write to them and urge them to build more wind and solar to get the prices down as we have been told that renewables are getting cheaper and cheaper.

  12. April 17, 2021 10:06 am

    The destruction of formerly remote areas of Scotland continues apace with nowhere now safe from our government’s dictatorship, over-ruling communities and councils everywhere to consent more and more windfarms.

    As an objector to one in Sutherland (once beautiful) said recently:
    “…Ruining invaluable peat bog, killing birds, damaging tourism, hurting property prices, raising electricity bills, using thousands of tonnes of concrete…. It’s absurd. What makes it even more so is that turbines are a non-solution to a non-problem (anthropological global warming – it hasn’t warmed for nearly two decades whilst CO2 emissions have rocketed). They don’t replace or meaningfully displace our use of coal and they need constant inefficient back up. They encourage fuel poverty – over 40% in Scotland – because they are reliant on vast subsidies. They are inherently unreliable. They are only symbols of gesture politics and those supporting them are either ignorant of the realities of electrical generation or they are making money out of them. Reject this ridiculous scheme and save the land from shyster politicos in Edinburgh and London.”

    Couldn’t agree more. Developers in Sutherland have been paid nearly £67m. to switch their turbines off as they’re not needed, but for them – what’s not to like? So they carry on.

  13. 2hmp permalink
    April 17, 2021 10:45 am

    I am pretty certain Lord Etchingham (Charles Moore) is well aware of this and he has cabinet contacts. The trouble is they claim that the scientists say that climate change is a crisis – well at least 97% of them do !!! What hope is there with MPS refusing to question the facts.

  14. Coeur de Lion permalink
    April 17, 2021 11:12 am

    Ah dash it, got it wrong! Looking at the isobars on Monday predicted that the drought of wind electricity would cease midday Saturday. But it’s still here- gridwatch.Templar at four point four per cent! We are the ‘Saudi Arabia of Wind’ don’t forget .

  15. Thomas Carr permalink
    April 17, 2021 5:57 pm

    This data produced by Paul from the GWPF is getting close to critical mass. I suggest that if the complete material is available an article be written for the press and HM Treasury to include:

    (1) The stated output capacity of all the windfarms operating in the UK.
    (2) The achieved output of those farms since commissioning as a percentage of stated
    capacity.
    (3) The cumulative value of the subsidies.
    (4) The value per MW of the subsidy by dividing the subsidy by the achieved output.
    (5) The subsidy per household.

    The intention would be to underline the cost to the community and the nonsense of stating the output capacities as being in any way dependable.
    It should make the ‘sleight of hand’ clear for those who do not habitually read The New Scientist, The Scientific American, The Economist etc. and for whom graphical analysis is difficult.

    Perhaps Dr. Benny Peiser at the GWPF could say whether the statistics are available and whether the suggested article would be worth the effort.

    With apologies to all those for whom the above is old hat or merely teaching them to suck eggs.

  16. Nicholas Lewis permalink
    April 17, 2021 7:27 pm

    Article in Conservative Woman by Andrew Munford from GPWF which shows the extent of financial engineering going at Walney Extension where the entity selling the wind makes a loss but other owning companies receive the subsidy.

    https://www.conservativewoman.co.uk/down-on-the-windfarm-something-stinks/

    Its bad enough we are being forced to pay over the odds but its outrageous people are benefitting from this.

  17. J Flood permalink
    April 17, 2021 9:45 pm

    Until consumers realise what is going on there is no price to pay. The MSM seems in no hurry to tell them.
    A campaign to move the payment onto general taxation would be interesting. It would remove the regressive element and would underline the cost.

    JF

  18. Coeur de Lion permalink
    April 18, 2021 2:01 pm

    Oh oh, it’s midday Sunday even and Saudi Arabia of wind is producing 5%. That’s nearly a week.

  19. Jack Broughton permalink
    April 19, 2021 1:19 pm

    The only sensible reason for the UK to self-destruct because of CO2 emissions should be if there were a real and imminent threat from the gas. If there were such a threat really, the USA, Russia and EU would be forcing all coal and oil usage to be curtailed out of purely self-interest: i.e. China and India would not be allowed the free economic growth that they need.

    ERGO there is no crisis apart from in the minds of the gullible.

  20. Nial permalink
    April 20, 2021 11:59 am

    Checking http://www.gridwatch.templar.co.uk/ on 20 April 2021 we’ve had a week with almost _0_ wind.

    >:-|

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