Renewables target comes with a hefty price tag
'........The costs of green policies are out of control, and unaffordable. £9 billion here, £10 billion there, and pretty soon you're talking about real money..........'
Andrew Tyrie M.P.
According to an independent study commissioned in support of the Renewable Energy Strategy Consultation, £10 billion of new investment of our electricity network is needed to meet the 2020 renewables target, a cost incurred by transmission companies such as the National Grid. The cost of connecting offshore wind farms makes up around 75% of this figure, based on a 35% renewable electricity scenario.
A further £2.3 billion a year will be required to cover the cost of ancillary services to meet system balancing requirements. Meanwhile Open Europe reckons that the on-going cost of renewables policy will be £9 billion.
National Grid and Scottish Transmission Companies are currently busy pondering how they are to meet such targets by 2020 whilst delivering necessary network capacity.
The figure is confirmed in a written answer from the Department of Energy to a parliamentary question (PQ: 2007/4553) from Andrew Tyrie MP, which admits that the plans will also require an estimated £10 billion of new investment in the grid, plus an on-going £2.3 billion a year.
And there are good reasons to believe that the government's "35% renewables scenario" will simply not work in technical terms, even after this massive investment. The costs of green policies are out of control, and unaffordable. £9 billion here, £10 billion there, and pretty soon you're talking about real money.