UK calling a halt to Renewable Energy Gravy Train

[energy]

Interesting development across the water with the UK seeking to reduce Feed-in Tarriffs (similar to REFIT over here) on solar power.
FITs Review - Department of Energy and Climate Change

Unlike Ireland they seem to be interested in value for money in these challenging economic times

A principal objective of the review was to determine how the efficiency of FITs will be improved to deliver £40 million of savings, around 10%, in 2014/15, as committed to in the 2010 Spending Review. This commitment reflects the need for a responsible approach to public subsidies like FITs, to ensure value for money for consumers.

Ireland does not support solar with REFIT but has massive subsidies already in place for onshore (€68MWh) and evn higher subsidies planned for offshore (€140MWh) wind.

When Minister Noonan took over he was clearly informed by the Dept of Finance [page 147] http://namawinelake.files.wordpress....y_redacted.pdf that the previous Government's policy in this area was driven by ideology

In the context of preparations on this Bill, the Department expressed grave reservations about its content, particularly targets that appeared well in excess of EU targets

Interestingly Eirgrid produced a nice chart at their recent customer conference http://www.eirgridgroupconference.co...iam%20Ryan.pdf
Check out the slide entitled "Market Analysis 5 of 8" to see how dismal wind performed over the past 12 months.
Even though the installed capacity increases the output decreases - pretty dismal when you compare the values for Oct 2010 Vs Oct 2011 as winter approaches.

Isn't it about time that the Irish Government undertook a serious review of REFIT?

[Pat Gill]

energy,

Where are you getting your figures from ??

Ireland does not support solar with REFIT but has massive subsidies in place for onshore (€140MWh) and offshore (€220MWh) wind.

The REFIT applicable in 2011 for large wind is €66.35 per MW.
REFIT - Department of Communications, Energy and Natural Resources

Now to put that figure in context here are the Ex-Ante Irish market prices for today,



http://www.sem-o.com/Pages/default.aspx

As you can see the market price exceeds REFIT for most of the day, so REFIT is therefore irrelevant.

And of course the thermal stations receive capacity payments on top of those market prices.

Ireland has not yet even applied to the EU for approval for a REFIT tariff for offshore wind.

[owedtojoy]

Interesting development across the water with the UK seeking to reduce Feed-in Tarriffs (similar to REFIT over here) on solar power.
FITs Review - Department of Energy and Climate Change

Unlike Ireland they seem to be interested in value for money in these challenging economic times


Ireland does not support solar with REFIT but has massive subsidies in place for onshore (€140MWh) and offshore (€220MWh) wind.

When Minister Noonan took over he was clearly informed by the Dept of Finance [page 147] http://namawinelake.files.wordpress....y_redacted.pdf that the previous Government's policy in this area was driven by ideology


Interestingly Eirgrid produced a nice chart at their recent customer conference http://www.eirgridgroupconference.co...iam%20Ryan.pdf
Check out the slide entitled "Market Analysis 5 of 8" to see how dismal wind performed over the past 12 months.
Even though the installed capacity increases the output decreases - pretty dismal when you compare the values for Oct 2010 Vs Oct 2011 as winter approaches.

Isn't it about time that the Irish Government undertook a serious review of REFIT?

There is no problem with ending subsidies to renewable energy when such companies can stand on their own feet. And, of course, subsidisation of fossil fuel companies is ended as well, for example for "exploration" which is classified as "research" for tax breaks.

Funny, there are very few "free marketeers" calling for a level playing pitch.

[energy]

And of course the thermal stations receive capacity payments on top of those market prices.

Wind also receives capacity payments "on top" of REFIT see slides 14 & 15 http://www.eirgridgroupconference.co...iam%20Ryan.pdf

I have corrected the REFIT values in the OP.

[Clanrickard]

<mod>Deleted post removed</mod>

The sooner we get rid of keyboard anarchists with tiny balls the better.

[Pat Gill]

Wind also receives capacity payments "on top" of REFIT see slides 14 & 15 http://www.eirgridgroupconference.com/images/SEM Operations Review_Liam Ryan.pdf

I have corrected the REFIT values in the OP.

energy,

Thank you for amending your OP.

I also acknowledge that wind received 4% of the years capacity pot.

Now all we have to do is convince the financial industry that feed in tariffs are now unnecessary for onshore wind in Ireland.

[GreenIsGood]

Isn't it about time that the Irish Government undertook a serious review of REFIT?

The Irish people are being asked to accept terrible cuts and tax increases.

Yet corporate welfare for wind power developers continues. The reason given is daft "green energy" ideology that no economist or scientist can understand.

Or maybe our hapless government is trying to impress the Germans with Irish fanaticism for failed renewable energy dogma. Always trying to impress .. using poor people's money.

Either way, it's pathetic.

[energy]

Now to put that figure in context here are the Ex-Ante Irish market prices for today,



SEMO Home - Single Electricity Market Operator

As you can see the market price exceeds REFIT for most of the day, so REFIT is therefore irrelevant.

Pat - you read the chart you published incorrectly. You confused the system load versus the SMP.
REFIT was only below the SMP from 17:30 to 19:00. For the remainder of that 24hr period wind developers received more than the SMP!

Even though wind is only contributing approximately 11% of our annual electricity generation it receives 4% (EUR22m) of the capacity payment pot. Not bad when you consider that it is totally unreliable.

It's surprising to see a leading member of various wind development companies (West Clare Renewables & Spirit of Ireland) not realising that wind received capacity payments. Surely this formed part of the "business plan"?

[Pat Gill]

Pat - you read the chart you published incorrectly. You confused the system load versus the SMP.
REFIT was only below the SMP from 17:30 to 19:00. For the remainder of that 24hr period wind developers received more than the SMP!

Even though wind is only contributing approximately 11% of our annual electricity generation it receives 4% (EUR22m) of the capacity payment pot. Not bad when you consider that it is totally unreliable.

It's surprising to see a leading member of various wind development companies (West Clare Renewables & Spirit of Ireland) not realising that wind received capacity payments. Surely this formed part of the "business plan"?

energy,

Re the SMP if you put on the magnifying spectacles you will see that the SMP hovers between 6 and 7c a unit for much of the day, I do concede that this is the Ex-Ante price but the reality should not be much different. At present and projected natural gas prices onshore wind is price competitive.

Re Spirit of Ireland and West Clare Renewables, I think you would agree that the philosophy is that wind plus storage equals dispatchable supplies and as such the business plans could not depend on capacity payments which had not been negotiated.

The current view is that there will be some form of capacity payments in the UK market reforms.

And 4% is a fair figure when priority dispatch is available.

Ironically the presence of pumped hydro in the market would also serve to make CCGT more price competitive at current natural gas prices.

The authorities throughout Europe now seem to lean towards the view that renewables and storage together present a much more market friendly offering.

[energy]

The Irish people are being asked to accept terrible cuts and tax increases.

Yet corporate welfare for wind power developers continues. The reason given is daft "green energy" ideology that no economist or scientist can understand.

Or maybe our hapless government is trying to impress the Germans with Irish fanaticism for failed renewable energy dogma. Always trying to impress .. using poor people's money.

Either way, it's pathetic.

Is there any chance that Noonan might revise REFIT downwards as part of the EUR2.2bn cuts required in the budget?