Friday 13 June 2014

Double Speak on Energy Prices

The 'big six' energy companies this week blamed rising costs due to the 'governments environmental policies', and excused tariff rises, blaming them on 'green levies' [FT Wednesday].
On the same day, an article in The Times told us that National Grid proposes to increase the number of interconnectors from Britain to Europe where 'an excess of harnessed wind and solar energy is depressing prices '
So does solar and wind 'green' technology raise prices or does it depress energy prices?
According to the FT article you would deduce that green technology is responsible for price increases.
According to the Times article, the wind and solar technology had depressed prices.

The reality can be seen in Germany, where the price of electricity dropped to zero earlier this year when windy conditions coincided with a lot of sun and a drop in demand. The energy capitalists do not like their energy price to drop to zero - neither the British ones nor the German ones. Zero price, zero profit. I suppose the new interconnectors will help both manage their prices.
Meanwhile, energy companies will scramble to try to frack the earth for shale gas and continue to resist, with help from governments, the only rational solution - building a renewable energy infrastructure. Why don't the energy companies want to do this? Because prices will fall.

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