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That is, uh, nonsense.

A fixed-price take-or-pay agreement is not a subsidy.

In every other freaking sector of the economy, you can write long-term, fix-price frame agreements for variable levels of production. But apparently this bog-standard instrument that every first year student of supply chain management should be familiar with suddenly becomes a puzzling novelty when applied to wind power.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Jun 4th, 2015 at 04:25:29 PM EST
[ Parent ]
Some of the old arguments that were rolled out (intermittence, variability) have lost their potency in the face of experience in countries with a substantial share of renewables in the mix. The fact of lower electricity prices due to the merit-order effect is also taking the edge off the "renewables are hideously expensive" argument.

So here is the "thinking man"'s new sophistry: the merit-order effect puts a natural cap on renewables penetration.

It's a pretty convoluted effort. Will we see it trotted out much?

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jun 5th, 2015 at 01:13:27 AM EST
[ Parent ]
you think that's nonsense, you should have seen a segment on wind power on BBC this morning.

the presenter simply could not shake his obsession with wind power being subsidized and unable to pay its way, despite the Head of Scottish Power trying to tell him that it was not so, but the questions were perfectly framed to prevent him doing so effectively

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Fri Jun 5th, 2015 at 02:03:44 AM EST
[ Parent ]


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