Fixing the price of renewable energy would cut volatility and encourage investment

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Parts of the renewables sector are currently not profitable; fixing prices at a high enough point would ensure profitability and cut our reliance on fossil fuels

The lack of profit in [wind turbine manufacturing] has been ongoing for the past 10 years, getting slowly worse with each passing year

The second action to be addressed is the absolute need to fix prices for renewables, and to cease basing prices on fossils as happens currently using the contracts for difference . The way to do this is to set fixed prices for renewables at levels that ensure a profitable, sustainable and investible renewable energy industry. ]

Renewable energy used to be awarded fixed price contracts under various REFIT schemes. Currently, competitive auctions are the norm. This has resulted in unsustainably low electricity prices for renewables. Fossil based energy is a political tool. The most recent use of fossil fuels as a political weapon was by Russia as a method of supporting its war with Ukraine. We are living with the inflation consequences and will be lucky if we can avoid economic recession.When renewables are included in the energy supply system, there are a number of very important consequences:

The renewable fuel is free. Wind and solar happen anyway, and we can use technology to harvest them and turn their energy into electricity. Of course this technology costs. A small proportion of the cost of operating wind and solar can vary due to maintenance charges, but all the other costs, such as interest charges, equity returns, rates, rent, and capital repayment can all be fixed. Europe paid almost €1 trillion in 2022 for fossils.

 

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