By Paul Homewood
Millions of customers, we are told, have opted for “green energy deals” in the mistaken belief that they are doing their bit to save the planet. But how many would actually buy green energy if they had to pay the true cost of it?
At the moment, of course, the subsidies paid out to wind farms and other renewable schemes are spread over everybody’s bills. A rough calculation shows the cost of these subsidies, including ROs, CfDs, FIT and the Capacity Market, along with the extra costs incurred by the National Grid in coping with intermittent wind and solar power, to be in the region of £16 billion a year. Last year renewable generation amounted to 129 TWh, so subsidies equated to £124/MWh.
Assuming average household electricity consumption of 5000 KWh, it would mean a surcharge of £620 per home, if all their power was green.
I suspect very few would actually opt for green energy if they had to pay this much!