The Anonymous Widower

Insurers Seek Rule Change To Invest In Green Power

The title of this post is the same as that of an article in today’s copy of The Times.

This is the first paragraph.

The mouthpiece for the insurance industry has called on the regulator to overhaul rules to make it easier to invest in green energy projects, such as wind farms and solar power.

Green energy projects are bad investments for the first few years, as they just burn money during construction. After that, the wind or solar farm, just produces electricity, which gives an adequate return fpr perhaps around thirty years.

As the rules stand, the returns in the construction phase are a dodgy investment.

The Prudential Regulation Authority, who make the rules, was setup in 2013, with probably a bunch of dinosaurs drawing up the rules, based on the past not the future.

These figures show the total energy generated by wind power for the last few years.

  • 2008 – 5.4 GHh
  • 2009 – 6.3 GWh
  • 2010 – 7.9 GWh
  • 2011 – 12.7 GWh
  • 2012 – 20.7 GWh
  • 2013 – 24.5 GWh
  • 2014 – 28.1 GWh
  • 2015 – 40.4 GWh
  • 2016 – 37.4 GWh
  • 2017 – 49.6 GWh

Note

  1. Between 2013 and 2017 electricity generated by wind power has doubled.
  2. In 2017, seventeen percent of our electricity was generated by wind.

These figures show the total energy generated by solar power for the last few years.

  • 2008 – 0.17 GHh
  • 2009 – 0.20 GWh
  • 2010 – .0.33 GWh
  • 2011 – 2.6 GWh
  • 2012 – 1.3 GWh
  • 2013 – 2.0 GWh
  • 2014 – 4.1 GWh
  • 2015 – 7.6 GWh
  • 2016 – 10.3 GWh
  • 2017 – 11.5 GWh

Note

  1. Between 2013 and 2017 electricity generated by solar power has increased fivefold.
  2. In 2017, 3.4 percent of our electricity was generated by the sun.

This paragraph from Wind Power In The UK on Wikipedia, shows the major growth in offshore wind power.

The total offshore wind power capacity installed in the United Kingdom as of February 2019 is 8,183 MW, the largest in the world. The United Kingdom became the world leader of offshore wind power generation in October 2008 when it overtook Denmark. It also has the largest offshore wind farm in the world, the 175-turbine London Array wind farm, located off the Kent coast.

I don’t think the Prudential Regulation Authority saw that one coming.

Conclusion

The rules should be changed

 

 

March 11, 2019 - Posted by | Finance, World | , , , ,

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