One thing we have learnt this week – subsidy free renewables

walney 1 and 2Subsidy free renewables are growing closer according to an industry report this week.  No one wants a subsidy for their energy system.  It distorts any kind of market and is at the whim of consumer opinion and government will.  But in the UK the price of solar and wind have fallen so far we are close to this happening (2025).  To do so will almost kill of the construction of new gas plants completely.  The reasons for this are partly the shear volume of renewable kit and partly the increased use of energy storage, the price of batteries is also plunging.  Of course there is at the point when no subsidies are required ther is a problem.  This is the payback can be still very long.  Subsidy free renewables at this point will suffer slightly.  Nevertheless the report see £20 billion of investment between now and 2030.  Most of this will be wind (offshore) due to the drop in solar power support but now subsidy free solar is coming on stream as well.

As this area tends to move faster than anticipated then its likely that renewable deployment will be faster and higher then this anyway.  Meanwhile in Australia renewables deployment is continuing apace and leading to a fall in electricity prices…

Neil

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