Energy news in general

Chrysalis

Scot_39 said:

Another day - another Telegraph article - suggesting the wheels might be coming off on 95% by 2030 - due to the expected CfD caps - and at least the initial budget allocated to offshore wind for ar7.

Posting the MSN link as Telegrpah behind paywall

Miliband’s offshore wind dream in tatters as industry pushes for more cash

He expect shareholders to share his dream?

Whats the issue with government building them? Can anyone explain that to me?

JKenH

Chrysalis said:

Scot_39 said:

Another day - another Telegraph article - suggesting the wheels might be coming off on 95% by 2030 - due to the expected CfD caps - and at least the initial budget allocated to offshore wind for ar7.

Posting the MSN link as Telegrpah behind paywall

Miliband’s offshore wind dream in tatters as industry pushes for more cash

He expect shareholders to share his dream?

Whats the issue with government building them? Can anyone explain that to me?

Yes, Google can

AI Overview

In many countries, governments either manage or heavily regulate power generation and distribution, but it is rarely a complete government monopoly

. The extent of government involvement varies based on political and economic ideologies, but a fully state-run system can face significant challenges that lead to privatization or a mixed-market approach. 

Key reasons why governments do not fully generate and distribute power:

Economic and financial challenges

• Massive capital investment: Building and maintaining a national power infrastructure, including power plants, transmission lines, and distribution networks, requires enormous and continuous capital investment. Funding this through taxes can face significant political opposition.
• Operational costs: The day-to-day costs of running the power grid, such as staffing, fuel, and repairs, are immense. Private companies can be more agile and innovative in reducing these costs than a large, bureaucratic government entity.
• Avoiding financial losses: In some developing countries, state-owned power utilities can incur large losses due to non-payment of bills, electricity theft, and heavily subsidized prices. This forces governments to limit supply and ration electricity. 

Market and efficiency concerns

• Promotion of competition: Many governments believe that privatizing energy markets promotes competition, drives innovation, and can lead to lower prices for consumers. Private firms are incentivized by the profit motive to operate more efficiently and improve service.
• Mitigating market failures: The complex task of managing supply and demand is often handled by market forces. A state-controlled monopoly might not have the same incentives to optimize the grid and respond to changing market needs, potentially leading to inefficient coordination and investment.
• Avoiding political influence: Privatization can, in theory, shield the energy sector from political motivations that can lead to inefficient decision-making. Governments may avoid raising prices to remain popular, potentially running the utility into the ground. However, some argue that private companies also influence governments for their own profit. 

Logistical and technical complexity

• Maintaining the infrastructure: Running the power grid is a highly technical and complex task. An energy-system operator must constantly balance generation with demand and manage the transmission and distribution networks. This can be a challenge for large state-run bureaucracies.
• Adapting to new technologies: The energy landscape is evolving rapidly with the rise of renewable energy and smart grid technologies. Governments might find it difficult to keep pace with innovation compared to a dynamic, private sector.
• Specific geographic challenges: Technical and logistical challenges, like accessing energy resources in remote or harsh environments, can make it uneconomical for governments to provide power to all citizens. 

The mixed model approach

It is also important to note that a completely unregulated energy market can lead to its own problems, such as high profits for private companies and underinvestment in renewable infrastructure. Many governments therefore adopt a mixed approach: 

• Regulation and oversight: Even with privatization, government regulators are crucial for overseeing private energy companies to ensure fair pricing, reliability, and investment in infrastructure.
• Targeted public ownership: A government may maintain public ownership of certain parts of the energy network, such as the national grid or transmission infrastructure, to ensure long-term stability and coordinated investment.
• Private generation:Private companies are often relied upon to build and operate power plants, as they are often more efficient and responsive to market demands. 

MattMattMattUK

https://www.bbc.co.uk/news/articles/c4gpzynky88o

The government are now planning on adding more to our bills to pay for those who refuse to pay, great.

MattMattMattUK

Chrysalis said:

Scot_39 said:

Another day - another Telegraph article - suggesting the wheels might be coming off on 95% by 2030 - due to the expected CfD caps - and at least the initial budget allocated to offshore wind for ar7.

Posting the MSN link as Telegrpah behind paywall

Miliband’s offshore wind dream in tatters as industry pushes for more cash

He expect shareholders to share his dream?

Whats the issue with government building them? Can anyone explain that to me?

The government will not build them because that would require additional borrowing. The UK is already well over what can be deemed sustainable debt, we pay more on interest then we spend on education and policing.