By Paul Homewood
h/t Robin Guenier
The usual repetitive nonsense from AEP;
Once again he trots out fairy tale that wind and solar will soon start ‘to undercut the marginal running costs of existing coal plants’, without any facts to back it up and based on propaganda from the renewable lobby.
Even the most recent offshore wind CfDs are currently priced at £48/MWh, well above the wholesale price of £30/MWh. They will all be index linked, so that difference will continue to grow. Even under pre-pandemic costs of gas, the BEIS reckoned that the marginal cost of CCGT plants was only £38/MWh.
And that is before we add on all of the other costs associated with intermittent renewables.
But far more fundamental is the fact that no modern economy can run on a predominantly intermittent energy source, making discussion of costs irrelevant.
Both China and India have expressly acknowledged this fact, which is why they continue to build coal power plants.
Despite lockdown, China for instance have installed 16 GW of new thermal power capacity in the first half of this year alone. 1.3% of existing capacity. In comparison, only 6 GW of wind power has been added, equivalent to only about 1 GW once intermittency is factored in:
Remember too that coal is dirt cheap in China, which is why they favour it to gas power.
Of course, if AEP is really right, we can immediately do away with any further CfD auctions, as energy businesses will be queuing up to build wind farms, without the need for subsidies.
There will also be no need for carbon taxes, which are designed purely to make fossil fuels uncompetitive.
Above all there will be no more need for climate summits, starting with next year’s in Glasgow.
AEP writes exactly the same drivel month after month. I recall a similar piece about Greta last year. You might have thought the Telegraph would expect more for their money!!
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September 10, 2020 at 01:06PM