Tuesday 13 May 2014

Renewables are the lowest cost source of energy

Energy policy should be based upon long-term planning and costing, not short-term sound-bites driven by political expediency.The removal of subsidies for the development of large-scale photo-voltaic (PV) energy production makes no economic sense. According to the DECC's very well researched figures, PV at £70 per kWh will be the lowest cost source of electricity production in the UK by 2030, undercutting closed cycle gas turbines (CCGT) at £85 per kWh, and Open Cycle Gas Turbines (OCGT), essential to manage peak demand, currently costing £165 per kWh rising to £184 per kWh in 2030. Onshore wind at £85 per kWh is also a clear economic winner. Nuclear is also predicted to fall to £77 per kWh. Long term forecasts show gas, coal and oil based generation costs rising, whilst wind, PV and nuclear continue to fall. If we ignore the environmental debate, just a cursory look at the figures shows that we should cease all use of fossil fuels now. If we also account for the human and economic cost of climate change, plus the unsolved problem of long-term nuclear waste storage; promoting the rapid expansion of renewable energy is the only credible energy policy. It will guarantee security or supply, and reduce household bills.

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