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Net Zero Watch has condemned the Government’s green energy policies as “a national disaster.”

September 1, 2022

By Paul Homewood

 

nz

Press Release

London, 1 September: Net Zero Watch has condemned the Government’s green energy policies as “a national disaster.”

 


This follows the announcement that a major offshore windfarm will not activate an agreement to sell power at a much lower cost to the grid.
The Times has reported that the Hornsea 2 windfarm, which had a contract to sell power at £73 per megawatt hour, will instead sell in the open market, where prices have averaged £200 per megawatt hour this year, and reached £508 last week.
Britain’s struggling energy consumers are likely to end up paying a billion pounds extra for Hornsea’s electricity over the next 12 months.
The new Prime Minister should urgently look into the legal options for cancelling or revoking these poorly written contracts, the spirit of which are being grotesquely abused to the huge disadvantage to British consumers.
By 2026, there could be more than 16GW of offshore windfarms exploiting the perverse loophole (Moray East, Hornsea 2, Triton Knoll, InchCape, Seagreen Phase 1, Neart na Gaoithe, Dogger Bank A, Dogger Bank B, Dogger Bank C, Sofia, Hornsea 3, Norfolk Boreas, Moray West and East Anglia Three.)
Assuming they deliver 50% of capacity each year, and the differential between market price and CfD price remains at £130/MWh, the cost to consumers will be £9billion per year, at a cost of £337 per household.
Onshore windfarms, solar, and remote island windfarms will raise that figure still higher.
Reacting to the news, Net Zero Watch Director Benny Peiser said:
“In the midst of the worst energy crisis since World War II, wind companies are milking the system by using a perverse loophole.
And just a few weeks ago, Kwasi Kwarteng signed the contract for Hornsea 3, which contains the same loophole, as does the contract for every other offshore windfarm on the horizon.
The Government is putting every household on the hook for hundreds of pounds more, every year. Energy policy is lurching from one rip-off to another. It’s a national disaster.”

27 Comments
  1. AndyP permalink
    September 1, 2022 4:54 pm

    Did this “loophole” write itself into the contract? There must be a name(s) of an official who added this. Why are we governed by such incompetent people? Name, shame and sack!

    • Harry Passfield permalink
      September 1, 2022 5:05 pm

      You can bet Deben. Davey and a few other ex-ministers are going to benefit. Please God the press gives it a hammering.

    • Nick Dekker permalink
      September 1, 2022 8:49 pm

      Does anyone know what the loophole says?

      • September 1, 2022 9:29 pm

        The Guardian doesn’t know, if this recent article is any guide.

        Price of offshore wind power falls to cheapest ever level in UK
        https://www.theguardian.com/environment/2022/jul/08/price-offshore-wind-power-falls-cheapest-ever-level-uk

      • It doesn't add up... permalink
        September 2, 2022 4:16 pm

        The loophole is that CFD payments (in either direction) are only commenced after a formal notice of request, which can only be made once the wind farm is operational. By simply not submitting the notice the CFD terms do not apply. Wind farms that have given notice are bound to stick with the CFD terms for their 15 year contract.

        When the terms were drafted CFD strike prices were way above market, so of course the thinking was evidently that the wind farm would have every incentive to give the notice. The flexibility was granted on the basis that during construction there might be low levels of exports, so it was “fair” for wind farms to have 15 years of full capacity subsidy rather than find construction delays were eating into it.

        Note that Hornsea 2 actually has 3 separate portions each with their own CFD. Portions have been fully operational for months. Triton Knoll also has 3 portions. They commenced the CFDs on two of them before prices went bananas. The third garners market prices instead.

  2. Martin Brumby permalink
    September 1, 2022 4:55 pm

    “And just a few weeks ago, Kwasi Kwarteng signed the contract for Hornsea 3, which contains the same loophole, as does the contract for every other offshore windfarm on the horizon.
    The Government is putting every household on the hook for hundreds of pounds more, every year. Energy policy is lurching from one rip-off to another. It’s a national disaster.”

    You’re darned tooting!

    Don’t forget them signing up to Sizewell C. Because Hinkley C has been such a fabulous success.

    Don’t suggest that this is just bumbling incompetence. Maybe a bit of that, much more a Government conspiracy, encouraged by Bill Gates, George Soros, Hewlett, Packard, Rockefeller and the rest.

    • Chris Phillips permalink
      September 1, 2022 5:02 pm

      I dont think it was incompetance either. The Government’s green zeal under Johnson and his unelected de facto PM wife means that Ministers have been expected to get windfarms built at any cost. Contracts with this “loophole” have of course been highly effective in getting windfarm companies and their financial backers to sign up.

  3. Harry Passfield permalink
    September 1, 2022 4:56 pm

    As I saw somewhere over the weekend: “It ain’t Nett Zero, it’s Nett Poverty!”
    Kinda says it really.

  4. GeoffB permalink
    September 1, 2022 5:00 pm

    “Would you tell me, please, which way I ought to go from here?”
    “That depends a good deal on where you want to get to,” said the Cat.
    “I don’t much care where—” said Alice.
    “Then it doesn’t matter which way you go,” said the Cat.
    “—so long as I get somewhere,” Alice added as an explanation.
    “Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”

  5. MrGrimNasty permalink
    September 1, 2022 5:13 pm

    Met Office claiming joint hottest summer for England eh?
    2018 (15.8°C), 2006 (15.8°C), 2003 (15.7°C), 2022 (15.7°C), 1976 (15.7°C)
    https://www.metoffice.gov.uk/about-us/press-office/news/weather-and-climate/2022/joint-hottest-summer-on-record-for-england
    Not for the mean CET it isn’t even near, 1976 still wins by a fair margin despite the fiddling.

    • MrGrimNasty permalink
      September 1, 2022 5:14 pm

      Sorry, those numbers are the whole UK.

    • Ian Johnson permalink
      September 1, 2022 10:20 pm

      A tenth of a degree in 46 years doesn’t seem anything to be concerned about.

  6. September 1, 2022 5:26 pm

    Not much of a legacy is it!?

  7. James Broadhurst permalink
    September 1, 2022 5:28 pm

    The Times needs to manage their journalists or stop using teenage scribblers. In 2017 Ms Gosden reported that Hornsea 2 was a breakthrough at a CFD of £57; this year Mr Howard reported that a 50% share in the 1.3GW farm was worth 30% more than thought at £3bn – do the sums on that one at 45% efficiency; the science editor Ben Spencer reported last month that the Seagreen farm with 1.1GW capacity at CFD £41 and cost of £3bn was a revolution.

    And 5 years later Ms Gosden reported that these contract prices, now £74 not £57, would not be implemented. But Orsted would not gain from selling the power at £400 per MWhr due to their “hedging arrangements”. Unknown others would thus benefit. So, it wasn’t sufficient for Orsted to hedge the price at £74, they needed further hedging. The Times has to stop employing people easily fooled.

    • roger permalink
      September 1, 2022 11:10 pm

      Please ensure that you recycle all available waste paper as a shortage of brown paper for envelopes is forecast due to heavy demand.

  8. Mad Mike permalink
    September 1, 2022 5:42 pm

    Boris said today that Tony Blair is to blame by not starting building enough nuclear power stations which would’ve been online by now. Since the Tories have been in Government for the last 12 years and their record of building new station has been almost non-existent, I don’t know how he’s got the absolute bare faced cheek to say that.

    Looks like they will all be running around looking for someone to blame for this catastrophe.

    • Nick Dekker permalink
      September 1, 2022 9:03 pm

      In 2008 the Labour Party changed its position on nuclear and Alaister Darling, (the then energy minister) announced that they planned to build 10 ( I think ) nuclear plants by 2018. However, they lost power in 2010 so it was up to the Tories to carry this forward. What did we get? One power station by 2028, if we are very lucky, with a second by 2037 if Boris’ last gasp for a legacy plan gets off the ground. How right you are Mad Mike. Never trust a Tory Government with an energy policy. They do not believe in State policies.

      • It doesn't add up... permalink
        September 2, 2022 4:28 pm

        The pro nuclear policy didn’t last long. It was Chris Huhne who poured buckets of cold water on it as soon as he was appointed, assisted by Clegg. Davey continued. I chalk it to the Lib Dems.

  9. avro607 permalink
    September 1, 2022 5:43 pm

    Boris said on TV yesterday that wind is cheap electricity.Another lie.
    Lets hope that the next PM puts on a biggg wind fall tax on the operators.

  10. avro607 permalink
    September 1, 2022 6:02 pm

    How can the wind operators not honour an agreement?

    • September 1, 2022 7:59 pm

      It’s not a signed contract.

      • Nick Dekker permalink
        September 1, 2022 10:27 pm

        In that case it cannot be a contract.

      • I don't believe it! permalink
        September 2, 2022 11:01 am

        A contract does not need to be written or signed, but it certainly helps!

    • It doesn't add up... permalink
      September 2, 2022 4:30 pm

      They are. The agreement contains the flexibility not to start CFD payments until they ask to do so. This year, next year, sometime…

  11. Ben Vorlich permalink
    September 1, 2022 10:28 pm

    This is part of the problem, 85% of MPs have a University degree. The six most common degrees are

    Politics 20% ~110 MPs
    History 13% ~ 72 MPs
    Law 12% ~66 MPs
    Economica 10% ~55MPs
    Philosophy 6% ~33MPs
    English 4% ~22MPs

    Of the remainder all STEM subjects are represented by 93MPs. 14% of all MPs. Only one cabinet member has a science degree, one might have attending Heriot-Watt Unversity which is predominantly STEM. But STEM covers a multitude of topics.
    There’s nobody in parliament who can ask difficult questions of green energy snake oil salespeople

  12. Ron Barton permalink
    September 2, 2022 10:15 am

    Tucker Carlson – Things are falling apart very quickly

    Faith in our politicians and MSM have long gone.

Trackbacks

  1. The BBC’s at it again! This time it’s windmill fibs – UK Reloaded

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