Tag Archives: UK offshore wind

The Sins of the Fathers

CarbonBrief is at it again


From Climate Scepticism

BY MARK HODGSON

Not satisfied with its dubious piece: “Analysis: Record-low price for UK offshore wind is nine times cheaper than gas” , CarbonBrief recently decided to seek to ensure that Britain’s falling down the rankings of cumulative greenhouse gas emitters is reversed. After all, it’s essential that we here in the UK are made to pay for climate change, even if China has emitted more greenhouse gases in the last eight years than the UK has done since the industrial revolution. Or, to put it another way (as the BBC did as long ago as May 2021): “China emissions exceed all developed nations combined”.

Still, never mind all that, China is a developing country – apparently – so we must go easy on them. No, it’s you and me who have to pay, and here’s why. It’s because we have to take colonial rule into account. And (this is the good bit if you hate the west and love India and China), when we attribute all greenhouse gas emissions from colonial countries to their colonial masters, hey presto! Suddenly the situation looks very different. OK, the USA still tops the cumulative league tables, and China is still in second place, but France’s share increases by half, the UK’s doubles [so the article says, but persevere with the article, and actually it increases by 70%, which is a long way from doubling], the Netherlands’ nearly triples, Portugal’s more than triples, and the EU and the UK collectively see their contributions rise by “nearly a third”, to 19% [later on the article says they rise by 28%, which is nearer to a quarter than to a third. I struggle to take seriously an article with such internal contradictions].

And that’s not all. India’s share falls by 15%, while Indonesia and the whole continent of Africa also see their contributions fall by 24%. Isn’t that great? Now they can play the victim card with ever greater confidence, and it’s so much harder to blame them for anything. We can conveniently ignore the fact that India is now the world’s third largest greenhouse gas emitter on an annual basis, we can concentrate instead on the fact cumulatively it now drops to seventh place. Instead, the UK is in fourth place (leaping up from eighth place, and helpfully leap-frogging India in the process) and Germany is in sixth (sadly moving up only from seventh place, but I suppose it’s better than nothing). Excellent – make them pay!

There’s another sleight of hand that can be used to make the situation even worse for those former colonialists:

When weighted by current populations, the Netherlands (2,014tCO2 per person) and the UK (1,922tCO2) become the world’s top emitters on a cumulative per-capita basis. They are followed by Russia (1,655tCO2), the US (1,560tCO2) and Canada (1,524tCO2).

On this per-capita measure, China (217tCO2 per person), the continent of Africa (92tCO2) and India (52tCO2) are far behind developed nations’ contributions to warming.

This handily side-steps the fact that China’s current day per capita emissions are higher – more than 50% higher – than those in the UK.

Finally, give those former colonial powers a good kicking while they’re down:

Many former colonial powers are also net CO2 importers today. While data on CO2 imports and exports is limited, available figures further raise their shares of historical emissions.

Regarding that last point, not only would I – in fairness – concede that there’s something in it, it’s a point I have in the past made myself. I think it’s probably the best argument in the whole CarbonBrief piece.

The problem with the main thesis is that it largely seems to be based upon deforestation taking place under colonial rule. The issue here is that it seems to attribute it all to the decision-making power of the colonial master in each case, regardless of the reason the deforestation took place or of who ordered it. It seems historically ignorant, given how much of – for instance – modern-day India’s day-to-day rule under the British Empire was left to Indian princes. Thus, to attribute everything that went on in India during this period to the UK is simply inaccurate.

CarbonBrief’s analysis seems to assume that native rulers and inhabitants failed to receive any benefit from what went on in their lands during the colonial period, and it denies them any agency at all. It is in fact an analysis based on a colonialist mindset that assumes the locals could do – and did – nothing for themselves and the Europeans did everything, decided everything, and were the only beneficiaries. Clearly this isn’t the case.

CarbonBrief knows this, saying:

Arguably, the true share of responsibility for current warming lies somewhere between these two extremes, where emissions are fully assigned to either the colonial powers or their former colonies.

Arguably it does, but it doesn’t seem to be how CarbonBrief’s final analysis pans out. Instead, it’s all our fault:

This analysis assigns full responsibility for past emissions to those with ultimate decision-making authority at the time, namely, the colonial rulers.

CarbonBrief purport to rely heavily on the ideas expressed by Professor Beinert and Lotte Hughes in their 2007 book “Environment and Empire”, and sections of it are quoted about the colonial powers’ hunger for natural resources, which is fair enough, so far as it goes. Strangely, however, another more noble point is made:

Yet, as colonial forests were denuded of their ability to produce high-quality timber, colonisation also led to the beginnings of “conservationist practices and ideas”, Beinart and Hughes write:

[W]hile natural resources have been intensely exploited, a related process, the rise of conservationist practices and ideas, was also deeply rooted in imperial history. Large tracts of land have been reserved for forests, national parks or wildlife.”

And it seems that the locals were not perhaps as denied of agency (or responsibility for forestry) as has been implied, since we are also told:

The book quotes Hugh Cleghorn, conservator of forests for the Madras presidency, writing in 1861 of the “careless rapacity of the native population…who cut and cleared [forests]…without being in any way under the control or regulation of authority”.

We seem to receive no (carbon) credit for putting an end to that with the creation of an Indian Forest Department in 1864, even though surely credit is due?

And although the next quote is thrown in presumably to damn the British, it actually strikes me as being rather more exculpatory than damning (at least so far as deforestation and associated greenhouse gas emissions are concerned):

British imperial control of India had a major impact on its extraordinarily varied range of trees and forest products. It also restricted access to forests by poor people…That later exclusion of humans from wildlife parks was also partly rooted in the forest laws of the colonial people, which treated local people as wasteful and destructive…But pressures on the forest did not end with independence. The current rate of deforestation is said to be well over one million ha every year.”

A similar point could be made regarding the behaviour of the Dutch in Indonesia. (The poor Dutch, by the way, move up from somewhere below 35 on the cumulative emissions scale to thirteenth place).

We are treated to another quote:

The Dutch discovered the tobacco industry in Deli in the 1860s and created an industrial-scale plantation system. The local sultans collaborated and gave concessions of 1,000–2,000 hectares of land to each company in a 75-year lease. The Dutch colonial planters assumed that tobacco could only grow well in the soil that had just been cleared from the virgin jungle. Thus, the industry drove large-scale virgin forests clearing to produce tobacco leaves exported to Europe and America.”

So who is responsible? The Dutch colonial planters or the local sultans who leased them the land? Or should responsibility be shared?

Be that all as it may, CarbonBrief really make hay with the concept of historical per capita assumptions. Obviously if countries with large populations (such as India or Indonesia) can transfer a great deal of responsibility for their emissions to countries with much smaller populations (such as the UK or the Netherlands) then a massively distorted result can be obtained. And so it is, and CarbonBrief loves it. It tells us that on this (rather convoluted) basis, colonial powers are the top cumulative emitters per population in 2023, while the likes of China and India are far behind.

I have to say, it takes overwhelming chutzpah to give China a free pass in this way, given that it is the second greatest cumulative emitter of greenhouse gas emissions (behind only the USA), that its current day per capita emissions greatly exceed those of the UK, and that it is building new coal-fired power stations at a rate of knots. Despite all that, on this clever new basis of allocating responsibility for emissions, China has less than one eighth of the responsibility of the Netherlands, India appears to have barely 5% of the responsibility of the UK. Surely even CarbonBrief appreciate that this is an illegitimate piece of legerdemain?

Interestingly, the analysis seeks only to attribute responsibility from 1850, citing incomplete data among other reasons for this decision. However, read to the end of the article, and perhaps China isn’t so innocent after all (though of course this piece of information is omitted from the final figures in the analysis):

The picture is a little different for LULUCF. Figures from OSCAR, one of the three bookkeeping models used for post-1850 LULUCF estimates, extend back as far as 1701.

These figures show that some 93GtCO2 was released globally, during 1750-1850, equivalent to nearly 4% of the cumulative total from all sources during 1850-2023.

Nearly a quarter of this total originates in China and would not be reassigned on the basis of colonial rule.

But ignoring this in the analysis is OK, because “1850 is usually taken as the reference year for historical simulations and marks the starting point for temperature changes, which are generally measured against an 1850-1900 baseline.” Phew – that was close!

I conclude that the analysis is undoubtedly of interest, and I enjoyed reading it (honestly). However, it strikes me that its main purpose – especially given the timing of its release (26th November 2023) was to provide ammunition to developing countries with huge carbon footprints ahead of the “loss and damage” negotiations that are taking place at COP28. My only consolation is that it will probably prove to have been a waste of the authors’ time, insofar as they may have hoped that it would facilitate payment, based on climate guilt, from developed to developing countries. I very much doubt that this will come to pass.

Net Zero Offshore Wind

From NOT A LOT OF PEOPLE KNOW THAT

The Government has today announced the results of the fifth auction of Contracts for Difference (CfD) subsidies for renewable electricity generation. Its has been a failure, and may represent a landmark moment for renewables policy.

Only 3.7GW of new capacity has bid successfully, mostly through small projects, as compared to nearly 12GW last year. There were no bids for offshore wind, the UK’s flagship renewable generator.


Participants in the auction bid for guaranteed prices, below a cap set by ministers in advance of the auction. The cap for offshore wind was set at £44/MWh (in 2012 prices, equivalent to around £70/MWh today). This is higher than successful bids in the past, yet no wind farm developers felt able to bid at this price. Wind industry claims that this is due to rising prices are implausible – CfD contracts are index-linked.


While offshore wind’s failure to bid may be surprising to some, perhaps even to the Government, it will come as no shock to those familiar with the long-term capital and operating cost trends for wind power, as revealed in audited financial statements. Costs have not been falling dramatically as the industry claimed. All around the world the wind industry is in trouble for the same reasons; costs remain high, and high levels of subsidy are needed to reward investors.


In addition, the latest auction round closes down the loophole that allowed windfarms to reap huge windfall profits by failing to activate their contracts so that they could benefit from higher prices in the open market.
The fact is that wind power, wherever, is an expensive way of generating energy. That isn’t surprising either; wind is a physically low-quality fuel and the cost of turning it into electricity is intrinsically high.


The previously successful low bids for offshore wind were unrealistic, a point we made at the time. Even when built, wind farms delayed taking up their contracts so they could operate on a merchant basis, taking advantage of temporarily high wholesale prices.


Importantly, the cap for onshore wind bids in this round of the CFD auction was higher than that for offshore, at £53/MWh (2012 prices). There were a substantial number of successful bids at this price, though they are all located in Scotland, where land rents are lower and where the developers can expect to make extra income through the infamous “constraint payments”, where a wind farm is paid to reduce output. (Demand in Scotland is low and the grid links to England are congested, limiting exports.) Even so, we doubt that these successful onshore bids are strongly economic.


Andrew Montford, director of Net Zero Watch, said:
“Government seems to have believed the spin about falling offshore wind costs, and set a low cap on bids for new contracts, thus calling the wind industry’s bluff by accident. Doubtless, the industry will now beg for new and higher subsidies, blaming inflation and supply chain problems. Government should not believe this spin. As global experience shows, wind power is extremely and intrinsically expensive.”


Dr John Constable, energy editor of Net Zero Watch, said:
“The CfD auction results are symptomatic of a wider failure of wind power around the world. The industry is in a crisis from which it is unlikely to recover, because its costs are simply too high to be sustainable. The time has come for Government to admit that renewables have failed, and to start looking at realistic energy policies.”


There’s an interesting comment in EDP:

Andrew Harston, chair of East Wind, said: “This is a difficult time for UK offshore wind developers with massively increased costs of the order of 40% in their supply chain as a result of inflation effects and the impact of higher interest rates.

The impact of interest rates is real and significant. For years they have of course been artificially ultra low, thanks to QE. That has been in effect yet another subsidy for renewable energy, paid for by savers. It can also be argued that inflation has also been ultra low until 2021, as the pandemic depressed economic activity.

Either way, that 40% would suggest costs of around £65/MWh at 2012 prices, or £80/MWh at current prices. This is at a similar level to the market price of electricity.

Given the wider system costs involved with intermittent renewables, offshore wind certainly cannot be regarded as a bargain.

This is particularly so given the historic power price has been around £50/MWh. This has risen in the last couple of years because of two factors:

1) Higher carbon prices, which feed into the price of gas-fired power. This is the direct result of govt policy, deliberately designed to force gas power out.

2) The attack by western govts and banks on new gas and oil exploration, which has restricted supply.

It is no coincidence that just today WSJ are reporting that Biden has cancelled seven Alaskan oil and gas increases, originally granted by Trump.

And what do DESNZ say about this disaster for renewable strategy:

https://www.gov.uk/government/news/record-number-of-renewables-projects-awarded-government-funding

It may be a record number, but they are all tiny projects. Previously CfDs were reserved for large scale ones.

Nearly half, 1.5 GW, is solar capacity, which will produce a tiny amount of power, only about 1 TWh. Worse still, it will be next to useless in winter.

FOOTNOTE

Net Zero Watch state:

In addition, the latest auction round closes down the loophole that allowed windfarms to reap huge windfall profits by failing to activate their contracts so that they could benefit from higher prices in the open market

I may be wrong, but I thought the loophole was being closed from next year’s round, AR6.

Can anybody throw some light on this?