The Balderdash Broadcasting Collective is at it again (https://www.bbc.co.uk/news/articles/cx2rz08en2po) with it’s report entitled, “Renewables overtake coal as world’s biggest source of electricity….”
This of course raises the question about how to restore a sensible and affordable energy policy to the UK. It is all very well to argue for the repeal of the Climate Change Act, 2010 and all subsequent associated legislation.
It has to be recognised that to simply repeal all this legislation will leave the UK in chaos as the “Green Energy providers” will, without their massive subsidies call in the receiver and cease operating!
So the question is this: How does the UK proceed to transition from it’s present parlous state to a sensible state?
It means biting the bullet and finding an economically feasible way of maintaining the renewable energy providers without subsidies and forcing the millions of commercial, domestic and industrial energy users to pay artificially inflated bills!
The hard answer is this: Such cannot be done overnight!
A viable answer must be found. These means business as usual for a very short period in which the owners of the renewable providers (institutional and private shareholders) will have to adjust to a new reality – it is going to cost them money (in terms of capital losses and dividend cuts and/or suspensions).
Technically, the renewable providers will have to cease to provide electricity to the National Grid and for this capacity to be replaced by providers who are NOT subject to the Sun shining or the Wind blowing! These providers will have to find users of they electricity generate who either do not mind ceasing operations when their power goes off and/or able and willing to switch to an alternative supplier in these circumstances. Commercial activities that come to mind include crypto mining!
This brings us to addressing the issue of what to replace the renewables with?
There are two practical options:
#1: Gas turbines.
#2: Diesel generators.
These can be provided quickly and at scale.
Whilst nuclear power is a practical option the problems are political and bureaucratic – the UK has huge problems building Hinckley Point C nuclear power station (https://en.wikipedia.org/wiki/Hinkley_Point_C_nuclear_power_station) and hopefully Sizewell_C_nuclear_power_station (https://en.wikipedia.org/wiki/Sizewell_C_nuclear_power_station) will be able to be completed. The problem being the capacity of French industry to provide the items given that the French are wishing to replace their own capacity and naturally will put French interests before UK interests!
It MUST also be realised that IF the UK is desirous of maintaining it’s First World economic status it will have to adapt to the new reality of AI!
The FACTS are these: AI and AI data-centres demand vast amounts of energy. The Green Lobby were cushioned by the transformation of energy use in the UK by the abandonment of such heavy users such as aluminium smelting and heavy industry. FACT: AI uses more electricity than an aluminium smelter!
The new economic reality will provide UK politicians with (for them) an unpalatable choice: Adapt to the new economic reality OR see the UK decline to a Third World economy!
Time is SHORT!
Be in no doubt: This is going to be very expensive for the hard pressed UK tax payer!
You see, the aforementioned institutional and private shareholders will loose a LOT of money. Stocks that trade at say US $10 will collapse and will trade at say US $1! I use US currency as the shareholders who will cause most problems for the UK will be US Citizens living in the USA! This because these very angry people will contact their Congressmen and Senators and demand that something be done about it! These Congressmen and Senators will demand the US administration and the Secretary of State see to it that the UK compensates these people!
The UK’s politicians will find that they will be forced into a negotiation to compensate these people. Naturally, UK and other shareholders adversely affect will demand the same. This will be unaffordable. US Citizens will have to be compensated (in part at least) due to the power of the USA. The aim (of UK politicians) should be to reduce the anger (of US shareholders) down from incandescent rage to mere annoyance! This will be costly! Very costly!