Thursday, December 15, 2005

Electricity Subsidies

here's an example of a hidden subsidy in the renewables electricity industry (ignore the electricity fields give you cancer rubbish). don't be shocked, the old industries have been getting these kinds of subsidies for decades so they're learning from the pro's.
here's how it works out, i build a windfarm/solar tower/whatever in the middle of nowhere (assuming you aren't blocked by people that like living and looking at the view in TMON) from a business case that assumes x dollars per kilowatt hour (if kW.h isn't your bag, just think 'a bucket of electricity' it'll mostly work out). now they lobby the gummint for transmission lines to take their power from A to B and call it a 'strategic' investment for the whole country. this is a great way of keeping off your books one of the biggest costs of building generation plant - the ability to get it to your customers!
now the question of where your transmission lines are built and what constitutes a reasonable cost and how people that are affected are compensated are all good questions to ask, but preferably, these are asked in tandem with the generation proposal itself, anything else is somebody ripping off the rest of us with a dodgy business case.

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