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UK government shows its bias against decentralised power, rewarding big centralised coal and nuclear

Dave Toke’s Blog 14th Oct 2017, Just as the UK Government has stopped onshore renewables (mainly wind power
and solar pv) from getting all-important long term power purchase
agreements (PPAs) through the feed in tariff system (the big one being now
reserved for Hinkley C), so government agencies are moving to make sure
that the rules of the electricity market favour centralised generators over
decentralised ones.

The Government says that no subsidies will be available
for onshore wind and solar pv. Yet it is busy doling out subsidies and
altering rules to favour big power stations over decentralised renewables.

Matthew Lockwood, in a recent working paper, tells the story of how the
Capacity Market has largely been shaped to be a riverstream of income for
the existing gas and coal and nuclear power plant.

First came the decision to reward all existing generators for providing capacity, providing a
subsidy for plants that have been built a long time ago.

A much cheaper option would have been to operate a ‘strategic reserve’ that would fund a
dedicated set of assets to be brought in to balance supply and demand. But
that. of course, would not help the centralised power plant. Of course the
mere term ‘capacity’ is biased against the decentralised solutions which
include DSR and battery storage.


October 16, 2017 - Posted by | politics, UK

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