Comment Re:These articles are cool and all but (Score 1) 76
Why do we get submissions bragging about renewable capacity expansion and/or generation milestones? Where are the submissions boasting of everyday Britons saving money from their power bills being lowered by these installations? For the average consumer (and the economy of a nation), cost is the biggest factor.
A typical Briton will only see lower energy bills when wholesale prices stay low, grid congestion costs stop wiping out those gains, and OFGEM ensures those savings actually reach the meter. While these record wind outputs are absolutely real and frequently drive wholesale generation costs down to near zero, the price Brits pay is currently dominated by the archaic rules of the UK energy market and the physical cost of moving power from Dogger Bank to London.
The primary culprit is the sad fact that dead dinosaurs are still setting the marginal price. Under the current "pay-as-clear" market structure, the price of electricity is set by the most expensive generator needed to meet demand at that specific moment. Even if wind is providing 55% of the power for pennies, if the grid needs a single gas peaker plant to turn on to meet the last megawatt of demand, every generator gets paid that high gas price. Until market reform decouples renewables from fossil fuels, gas prices will largely dictate a typical Brit's electric bill regardless of how hard the wind blows -- this is the only thing that keeps gas peakers economically viable. As soon as renewables are decoupled from dead dinosaurs in OFGEM's repricing algorithm, fossil fuel generation will stop being a guaranteed profit maker, and start becoming a guaranteed loss. The fossil fuel industry knows this, and will do everything in its power to keep that decoupling from happening.
This is compounded by a massive hidden tax caused by grid congestion. As the Times mentions, Britain has spent nearly £1.3 billion this year paying wind farms to turn off because the cabling network physically cannot carry that much power south. Brits then have to pay gas plants closer to London to fire up to replace them. Realistically, consumers won't feel the full financial benefit of Dogger Bank, Hornsea, and Beatrice until the transmission upgrades catch up to the generation capacity. Brits are likely looking at 2026 for the first bottlenecks to clear, but true structural price drops won't arrive until the late 2020s when new transmission lines come online and the "gas-setting-the-price" mechanic is finally reformed. Wind is doing its job; the grid and the regulators just haven't caught up yet.