Wind power has been doing well in the UK, especially offshore. But there are issues. The variability of renewable energy sources like wind and solar is not their only problem- pushing the full system costs of energy up, as I discussed in my last post. There are also curtailment costs incurred when local potential green power supply exceeds what can be delivered to consumers. For example, last year, SSE earned nearly £10 million in ‘constraint’ payments for unused wind power generated in Scotland, the vast majority from its Viking on-shore 103 turbine wind farm. It is not alone. For example, a Feature article in the Times (Jan 10th) noted that SSE’s Seagreen offshore wind farm off the East coast of Scotland has been paid to curtail output from it 114 turbines for 63% of the time. In all, the Times report noted, curtailment cost consumers £1.5 bn last year and it said the fundamental problem was the ‘lack of cables’ to users- with wind farms mostly bein...
The widely used Levelised Cost of Energy metric isn’t comprehensive enough, says the LSE Grantham Institute. For example, when using variable renewables, the system cost of balancing must be added in, as is also argued forcefully in a blistering attack on LCOEs by Art Berman w ho goes even further and says ‘The energy transition is collapsing- not in headlines, but in economics…Wind and solar may be cheap at the generator fence, but not at the system level. The gap between those two is where the economic case collapses’. A somewhat more measured report by the UNECE group based in Switzerland looks in detail the LCOE issue, with all the various extra cost due to the use of variable renewable energy (VRE) sources being explored. While Bermen says ‘What began as a hopeful vision for a cleaner future has become an economic bust. While markets and workers sense the failure, activists and policymakers remain caught in a consensus trance’, UNECE is bit more hopeful about th...