[HN Gopher] Price paid for offshore power to rise by 50%
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       Price paid for offshore power to rise by 50%
        
       Author : thedrbrian
       Score  : 22 points
       Date   : 2023-11-15 20:15 UTC (2 hours ago)
        
 (HTM) web link (www.bbc.co.uk)
 (TXT) w3m dump (www.bbc.co.uk)
        
       | benj111 wrote:
       | Well at least the govt is actually doing something.
       | 
       | I wish headline writers would try not to be so miss leading
       | though.
       | 
       | It's up to, and it would essentially be fixed at that cost. I'd
       | rather PS70 MWh than the current PS90 MWh that can swing wildly
       | up and down.
        
         | hdaz0017 wrote:
         | "Well at least the govt is actually doing something."
         | 
         | Yeah they are doing something, they are causing the issues !!!
         | so they can say we are doing something!
         | 
         | They are wasting time, money and energy! with minimal
         | action(s).
         | 
         | in two to four years there is going to be a "massive" energy
         | shock to uk energy supply by total lack of planning and
         | action(s) by this very government!
         | 
         | The goal(s) are to outsource everything and say it was not out
         | problem(s) and play a blame game!
        
         | julosflb wrote:
         | Beware that the PS70 MWh is as per 2012 price, as were the
         | previous PS44 of AR5. So effectively close to PS100MWh
         | corrected for inflation.
        
       | scott_w wrote:
       | About time! Hopefully once Labour come in, they can make good on
       | Starmer's promise to cut the red tape holding back onshore wind
       | farms, too.
        
       | tome wrote:
       | I'm having trouble reconciling these two statements.
       | 
       | > The BBC understands the government now will raise the price it
       | pays from PS44 per MWh to as much as PS70.
       | 
       | > It is hoped more offshore wind capacity will lead to cheaper
       | energy bills.
        
         | toomuchtodo wrote:
         | Although the price of offshore wind goes up, it offsets the
         | price of more expensive energy in the energy mix. Could be spot
         | market fossil gas in peakers or something similar (power
         | imports without a long term contract).
         | 
         | https://www.ofgem.gov.uk/energy-data-and-research/data-porta...
        
           | julosflb wrote:
           | A very nice writing about that concept where more wind power
           | drives price down: https://jeromeaparis.substack.com/p/the-
           | cost-of-wind-the-pri...
        
         | mperham wrote:
         | It is common for governments to subsidize areas where they want
         | to see more industrial capacity and research. This, in the long
         | run, leads to more competition and lower prices.
        
         | tootie wrote:
         | https://www.npr.org/2023/10/06/1197954251/uruguay-green-ener...
         | 
         | Planet Money ep on the strategy at play. Uruguay managed to
         | build an entire wind grid by offering guaranteed rates for
         | electricity for 20 years. I think UK is trying something
         | similar. Guaranteed minimum payments to offset the risk
         | associated with the massive startup costs.
        
         | iamthemonster wrote:
         | Remember that at the home we pay about PS300 per MWh - this
         | payment does not have much relation to bills
        
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       (page generated 2023-11-15 23:01 UTC)