The Renewable Dichotomy

28 January 2005


The renewable power association (RPA) has stated that the DTI and the Office of the Deputy Prime Minister are producing conflicting signals for renewable generators. It is well known that the economics of renewables, are finely balanced with sporadic generation production it is difficult to calculate revenue streams, as a result getting money loaned to these types of projects also becomes difficult.

One of the ways in which the government aimed to help the renewables sector was in the way they calculated business rates on a variable capacity basis, which suited a high capacity low generation unit. However the ODPM in April 05 will introduce business rates on a fixed capacity basis, for generation units. Not surprisingly this works best for the high production unit such as nuclears, but on a £/MWh basis for the renewable sector it could be crippling. The dichotomy is whether to cripple the renewables and favour the nukes, or vice versa.


Carbon  Nuclear  UK Government  Transmission  Labour 

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