baron von lotsov
09-06-2007, 04:55 AM
You know you are. But do you know how you are? Have you heard of the Renewables Obligation (RO). No I didn't think so. Well in that case consider this:
Quote
Renewables Obligation
The Renewables Obligation as its name suggests places an obligation on electricity suppliers to purchase qualifying renewably generated electricity but it also forces a consumer-sourced 'subsidy' to be paid to the renewable generator. The mechanism of payment results in an increase in electricity price to all consumers, whether or not they subscribe to a 'green tariff'. Few consumers are aware of this fact and neither government nor developers apprise them of it.
The RO is operated through the mechanism of Renewables Obligation Certificates (ROCs - see Figure 1) and these certificates are a marketable commodity, generating additional income for the renewable generator.
The ROC has a buy-out price which was agreed at £30/megawatt hour (MWh) in 2002 and, index-linked, has now reached £32.33/MWh. This provides a 'floor' below which the subsidy on wind and other renewables can never fall.
Climate Change Levy exemption (CCLe)
In addition to the consumer-sourced RO another small advantage is given to the renewable generator. Non-renewable fuels pay a tax of £4.30/MWh, but renewables are exempt and so, effectively, are given an extra £4.30/MWh for their electricity.
The net subsidy - about £45/MWh
From 2002 when the RO system replaced the former NFFO (Non-fossil Fuel Obligation) the price of ROC's steadily increased. Two years ago it reached about £47/MWh (buy-out price of £30 plus £17 market increment) but very recently (2006) the increment has dropped back to c. £10 giving the RO a total value of about £40/MWh.
Adding to this, the CCLe of £4.30/MWh, we have a total subsidy close to £45/MWh
Wind electricity price is inflated to £90/MWh
As of January 2006 the wholesale price of electricity has risen to about £45/MWh (compared with c. £20/MWh a couple of years ago).
The implication is that the net subsidy, currently about £45/MWh, roughly doubles the value of wind electricity to c. £90/MWh (and prior to 2005-6 price changes, it almost trebled it).
This is probably the largest per unit subsidy ever paid for any commodity and the wind power industry has gained similar advantage in most other countries through either similar direct subsidy or, as in the US, through tax-breaks to wind power companies.
At present, coal-fired generation receives a per MWh subsidy which is less than a 25th of the wind subsidy. Gas-fired generation has never been subsidised and nuclear ceased to be subsidised in 1995-6 and has incidentally repaid with interest the bail-out loan made to it some years ago.
A big wind turbine earns £400,000 p.a. of which half is ‘subsidy’, paid by all consumers
Many wind turbines are of 2.0 MW or greater capacity and about
120 m in height. Because of limitation by wind speed, a 2.0 MW machine produces a quarter or a little more of its rated capacity, i.e. 0.5 MW on average.
Over one year it generates 0.5 x 24 x 365 = 4,380 MWh, and at the renewables price of £90/MWh, the gross earning is £394, 200 p.a.
About half of this income is from the consumer-sourced subsidy, without which the machine would be close to bankruptcy.
Big earnings, big ‘footprint’ but not much electricity or CO2-saving
One might assume that as the wind generators are so substantially rewarded, they produce a lot of electricity but this is not so. At the moment DTI figures show that wind provides less than 0.5% of UK electricity.
If the 2.0 MW wind turbines, wind-limited as above, were to replace the output of a large, 2000 MW conventional power station it would require at least 3000 turbines spread over 750 km2 of countryside. Some Footprint‚!
Incidentally the Replaced‚ power station could not be closed as its electricity is still required to fill the gaps when the wind turbines are not fully generating.
The main reason given by government for installing wind power is that it will save carbon dioxide (CO2) emission and consequently reduce the rate of Global warming‚
Government‚s own prediction for CO2 saving by renewable electricity (mainly wind) in 2010 is just 9.2 million tonne CO2, which is less than four ten-thousandths (0.0004) of global man-made CO2 emission. Some chance, our Windmills‚ have, of altering the weather!
http://www.countryguardian.net/ROC%20Etherington%202006%201.htm
Quote
Renewables Obligation
The Renewables Obligation as its name suggests places an obligation on electricity suppliers to purchase qualifying renewably generated electricity but it also forces a consumer-sourced 'subsidy' to be paid to the renewable generator. The mechanism of payment results in an increase in electricity price to all consumers, whether or not they subscribe to a 'green tariff'. Few consumers are aware of this fact and neither government nor developers apprise them of it.
The RO is operated through the mechanism of Renewables Obligation Certificates (ROCs - see Figure 1) and these certificates are a marketable commodity, generating additional income for the renewable generator.
The ROC has a buy-out price which was agreed at £30/megawatt hour (MWh) in 2002 and, index-linked, has now reached £32.33/MWh. This provides a 'floor' below which the subsidy on wind and other renewables can never fall.
Climate Change Levy exemption (CCLe)
In addition to the consumer-sourced RO another small advantage is given to the renewable generator. Non-renewable fuels pay a tax of £4.30/MWh, but renewables are exempt and so, effectively, are given an extra £4.30/MWh for their electricity.
The net subsidy - about £45/MWh
From 2002 when the RO system replaced the former NFFO (Non-fossil Fuel Obligation) the price of ROC's steadily increased. Two years ago it reached about £47/MWh (buy-out price of £30 plus £17 market increment) but very recently (2006) the increment has dropped back to c. £10 giving the RO a total value of about £40/MWh.
Adding to this, the CCLe of £4.30/MWh, we have a total subsidy close to £45/MWh
Wind electricity price is inflated to £90/MWh
As of January 2006 the wholesale price of electricity has risen to about £45/MWh (compared with c. £20/MWh a couple of years ago).
The implication is that the net subsidy, currently about £45/MWh, roughly doubles the value of wind electricity to c. £90/MWh (and prior to 2005-6 price changes, it almost trebled it).
This is probably the largest per unit subsidy ever paid for any commodity and the wind power industry has gained similar advantage in most other countries through either similar direct subsidy or, as in the US, through tax-breaks to wind power companies.
At present, coal-fired generation receives a per MWh subsidy which is less than a 25th of the wind subsidy. Gas-fired generation has never been subsidised and nuclear ceased to be subsidised in 1995-6 and has incidentally repaid with interest the bail-out loan made to it some years ago.
A big wind turbine earns £400,000 p.a. of which half is ‘subsidy’, paid by all consumers
Many wind turbines are of 2.0 MW or greater capacity and about
120 m in height. Because of limitation by wind speed, a 2.0 MW machine produces a quarter or a little more of its rated capacity, i.e. 0.5 MW on average.
Over one year it generates 0.5 x 24 x 365 = 4,380 MWh, and at the renewables price of £90/MWh, the gross earning is £394, 200 p.a.
About half of this income is from the consumer-sourced subsidy, without which the machine would be close to bankruptcy.
Big earnings, big ‘footprint’ but not much electricity or CO2-saving
One might assume that as the wind generators are so substantially rewarded, they produce a lot of electricity but this is not so. At the moment DTI figures show that wind provides less than 0.5% of UK electricity.
If the 2.0 MW wind turbines, wind-limited as above, were to replace the output of a large, 2000 MW conventional power station it would require at least 3000 turbines spread over 750 km2 of countryside. Some Footprint‚!
Incidentally the Replaced‚ power station could not be closed as its electricity is still required to fill the gaps when the wind turbines are not fully generating.
The main reason given by government for installing wind power is that it will save carbon dioxide (CO2) emission and consequently reduce the rate of Global warming‚
Government‚s own prediction for CO2 saving by renewable electricity (mainly wind) in 2010 is just 9.2 million tonne CO2, which is less than four ten-thousandths (0.0004) of global man-made CO2 emission. Some chance, our Windmills‚ have, of altering the weather!
http://www.countryguardian.net/ROC%20Etherington%202006%201.htm