Renewable energy burns our money

Whether directly or indirectly, the EU driven Renewables Obligation is going to cost business – and by extension all consumers – a huge amount of money.  Badly thought out, unjustifiable and spawning any number of scams, this scheme will see certain corporations make a fortune from what amount to cap and trade, while others struggle to survive with the burden of additional costs.

The Renewables Obligation is a bureaucratic ‘solution’ to ‘climate change’ that will achieve precisely nothing in respect of the environment yet requires us to burn less fossil fuels and burn our money instead. The issue of costs arose in the House of Commons yesterday and the impact of this Brussels directive is starting to dawn on people:

Philip Davies: To ask the Secretary of State for Energy and Climate Change what estimate he has made of the average cost to (a) small, (b) medium and (c) large manufacturing enterprises of obtaining 15 per cent. of their energy consumption from renewable sources. [21267]

Gregory Barker: The Secretary of State has published estimates of the average electricity bill impacts for medium-sized(1) non-domestic energy users of energy and climate change policies, including those policies necessary for reaching the 15% renewable energy target.

The introduction of Feed-in tariffs for small-scale electricity is estimated to increase average bills for this group by £24,000 in 2020 and extending the RO to meet the target is estimated to increase bills by £150,000 in 2020, a combined impact of 17% (source DECC (2010) “Estimated Impacts of Energy and Climate Change Police on Energy Prices and Bills”, available at:

These estimates do not take account of the potential offsetting impact from wholesale prices pushing down wholesale electricity prices, which previous modelling by Redpoint for DECC suggested could be of the order of £6/MWh on average over the period 2010-20. They also do not take account of other energy and climate change policy changes announced in the spending review 2010.

No separate assessment has been made of the bill impacts in the manufacturing sector, or of relating to small or large enterprises.

The spending review 2010 announced that the Renewable Heat Incentive would be funded through general taxation, so it will not impact on consumer gas bills.

    (1) Size is defined here in terms of level of energy use.

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