Renewable Energy Foundation

The following email was sent on the 13th of February 2013 to DECC as a formal submission to the consultation on competitive allocation of contracts of Feed-in Tariffs with Contracts for Difference (FiTs CfDs) under the Electricity Market Reform (EMR) package. 

Last week the energy blogger Chris Goodall published, on two websites, a comment on Professor Hughes' study for REF on the degradation of wind turbine performance over time (See Carbon Commentary; and also the website of the Ecologist magazine).

Mr Goodall posed two questions, and invited a response. The following text is Professor Hughes' reply and has also been published on the Carbon Commentary site, where Mr Goodall's further comments, and those of others, can be read.

REF is often asked about the lifetime emissions saving potential of uncontrollable renewables such as wind and solar, the output of which is difficult to predict with great accuracy even a few hours ahead.

Given uncertainties about the embedded emissions in site specific applications of these technologies, which may vary considerably (due to difficult access or disturbance of peat, for example), it is inherently very difficult to give a generally adequate answer.

Moreover, it is not clear how solar and wind generators interact with the conventional plant in the rest of an electricity system. To be specific, there are uncertainties a) as to which conventional plant is likely to be displaced by wind and solar, and, b) if it is fossil-fuelled plant, whether the thermal efficiency of plant is significantly degraded by the ramping of output required when operating in the support role.

In discussions of subsidies to renewables it is sometimes claimed that fossil fuels in the United Kingdom receive greater support. This misunderstanding arises from the confusion of two quite different things:

a) subsidies to investors in renewables which increase consumer costs

and

b) Lower VAT (5% not 20%) on gas and electricity used by domestic energy consumers, and tax breaks to oil and gas companies, both of which will reduce costs to consumers.

It is obviously misleading to treat these two effects as if they were similar in economic character. However, this is increasingly common, even amongst those who might be expected to understand these matters.

REF was the first organisation to draw attention to the excessive prices demanded by windpower to reduce output (constraint payments), and the resulting publicity is in part responsible for the fall in prices, though these are still, in our view, excessive.

The wind industry has responded to this criticism by attempting to confuse the public with claims that other generators are paid more to be constrained off. This is untrue, but unfortunately was made the central argument in a piece in the trade journal, Utility Week:

On 26 April 2013, REF wrote to the Scottish Government seeking the details underpinning a Scottish Parliamentary Answer concerning wind farm performance. We received a reply on 30 May 2013 which has prompted the following answer.
Read more...

Attachments:

REF to Scottish Government on Wind Farm Performance 10.06.13

Scottish Government to REF on Wind Farm Performance 13.05.13

The think-tank Civitas has today published a short paper, "Are Green Times Just Around the Corner?", by REF's director, John Constable.

The paper asks whether a low carbon economy can sustain contemporary standards of living, and argues that it can only do so if the costs of renewables fall to make them competitive with current fossil fuels. The paper further suggests that subsidies to renewables are actually counterproductive, and discourage invention and innovation.

The May issue of the magazine Standpoint carries a new article by John Constable, REF's director, in collaboration with Patrick Heren, "An Alternative To Our Reckless Energy Gamble"

The piece argues that the costs of the current low carbon energy policy are dangerously extreme, and that consequently there is a high risk that consumers will become disenchanted with the climate agenda. Instead, the authors suggest that government should use gas generation as a means to reduce emissions in the short term, while generating wealth to fund a new innovation based energy policy.

REF has today (26 April 2013) written to Mr Fergus Ewing, MSP, Minister for Energy, Enterprise and Tourism in the Scottish Government.

The immediate cause is the following Question and Answer exchange between Mr Ewing and Mr Murdo Fraser, MSP concerning the study by Professor Hughes of wind turbine performance degradation and economic lifetime:
Read more...

Attachments:

REF Letter to Fergus Ewing MSP

On the 4th of February, REF wrote to the Secretary of State for Energy & Climate Change, The Rt Hon Ed Davey, MP, defending our calculation of the future costs of the offshore wind program, which DECC had called "pure speculation". We also criticised the Department's assumption that costs would come down in the future, and suggested that if anyone was speculating it was DECC. We received a response yesterday, with additional underlining in Mr Davey's own hand.

In his response, the Secretary of State shows that he trusts the wind industry when they promise to cut costs in the future. That seems to us an extremely hazardous position to take. Bluntly, a subsidy-seeking industrial sector might say anything to get their foot in the door, and their undertakings should be treated with caution, particularly when the consumer burdens entailed are so vast.
Read more...

Attachments:

DECC Letter to REF on Off-shore Wind Costs