Helm Talks - energy climate infrastructure & more

No such thing as free electricity


Listen Later

There is no such thing as a free lunch, and there is no such thing as “free” electricity. What is true is that there are going to be days in summer when supply exceeds demands and hence the value of electricity generated will be zero. Surpluses arise because a renewables-based system needs far more total generating capacity to guarantee supply at all times, including when the sun is not shining and the wind is not blowing. Using the UK as an example, meeting a peak demand of around 45GW may require roughly double the capacity compared with the “bad old days” of fossil-fuel-based generation, as well as twice the grid system and lots of batteries and storage. There are bound to be times when lots of that 120GW is generating but demand is low.
But excess electricity does not reduce the costs. These don’t magically go away. Investors will build wind, solar and nuclear plants only if they are paid through mechanisms such as fixed-price contracts, and households also need to fund the expanded grid, balancing and storage required to handle the extra capacity. As a result, “free” electricity during certain periods will still be paid for elsewhere – ultimately by consumers and taxpayers. Renewables are a good thing, but they need to be accompanied by an honest public discussion about the real system costs of decarbonisation rather than the promise of free energy.
...more
View all episodesView all episodes
Download on the App Store

Helm Talks - energy climate infrastructure & moreBy Helm Talks - energy climate infrastructure & more


More shows like Helm Talks - energy climate infrastructure & more

View all
More or Less by BBC Radio 4

More or Less

876 Listeners

Political Fix by Financial Times

Political Fix

158 Listeners

The Politics Show by The New Statesman

The Politics Show

140 Listeners

The Briefing Room by BBC Radio 4

The Briefing Room

58 Listeners

Political Thinking with Nick Robinson by BBC Radio 4

Political Thinking with Nick Robinson

114 Listeners

IEA Podcast by Institute of Economic Affairs

IEA Podcast

17 Listeners

Inside Briefing with the Institute for Government by Institute for Government

Inside Briefing with the Institute for Government

21 Listeners

IFS Zooms In: The Economy by Institute for Fiscal Studies

IFS Zooms In: The Economy

7 Listeners

Cleaning Up: Leadership in an Age of Climate Change by Michael Liebreich, Bryony Worthington

Cleaning Up: Leadership in an Age of Climate Change

83 Listeners

The Rest Is Politics by Goalhanger

The Rest Is Politics

3,336 Listeners

The State of It by The Times

The State of It

83 Listeners

The Econoclasts by UnHerd

The Econoclasts

123 Listeners

The Rest Is Money by Goalhanger

The Rest Is Money

174 Listeners

Political Currency by Persephonica

Political Currency

139 Listeners

Radical with Amol Rajan by BBC Radio 4

Radical with Amol Rajan

45 Listeners