Europe’s Largest Wind Farm Facing Bankruptcy

From NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

h/t Joe Public

More bad news for the wind industry:.

What is different about this one is that the PPA forces the wind farm to buy power on the spot market, when the wind does not provide enough:

In other words, the wind farm is obliged to pay the costs of its own intermittency. And, of course, when wind power is low, spot market prices rise.

This highlights the worthlessness of wind power, as when there is plenty of wind, the value of the product is low.

In this country it is energy consumers who have to pay the costs of intermittency, something which needs changing.

4.9 44 votes
Article Rating
69 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Scarecrow Repair
November 12, 2023 10:05 pm

The consumer always pays, one way or another.

ethical voter
Reply to  Scarecrow Repair
November 12, 2023 10:55 pm

Yes. This simple truth eludes many and wind farms are just the tip of the iceberg for wasted money. A.k.a. lost opportunity.

commieBob
Reply to  Scarecrow Repair
November 13, 2023 5:13 am

That is true for money that has already been spent. It’s water under the bridge.

The trick is to avoid wasting the citizens’ money in the first place.

Making the windmill operators responsible for providing base load power is the way it should be. That way real competition is restored to the market place.

Drake
Reply to  commieBob
November 13, 2023 10:07 am

You miss ‘the trick” completely. As in the article on the Virginia elections, “the trick” is to insure that you, the politician/administrators get your cut of the crony capitalist profits from your forced “green” mandates.

rah
Reply to  Scarecrow Repair
November 13, 2023 9:05 am

LOL! Ain’t that the truth. I once was talking to a guy about property taxes and he told me that since he lived in an apartment the increase would not effect him.

November 12, 2023 10:32 pm

7. november 2017

Norsk Hydro buys Swedish wind power

The aluminum giant Hydro is taking another stab at the renewables market. The company has now gone to Sweden to buy wind power.

https://e24.no/energi-og-klima/i/MgevdJ/norsk-hydro-kjoeper-svensk-vindkraft

12. november 2023

Trouble for Swedish wind power company after agreement with Hydro

On Monday, Hydro Energi will appear in Umeå District Court after the Swedish renewable energy company Markbygden Ett has applied for reconstruction.

https://e24.no/energi-og-klima/i/69GOm8/troebbel-for-svensk-vindkraftselskap-etter-avtale-med-hydro

Dave Fair
November 12, 2023 10:48 pm

That’s what you get for sigining a PPA without: 1) Analyzing long-term wind generation patterns (yours and others); and 2) believing Leftist government agency and wind energy huckster lies about energy markets. It doesn’t matter, though; ratepayers and taxpayers will pick up all the excess costs.

November 12, 2023 10:57 pm

Working as designed. The politicians knew exactly what would happen, and the DEFCON level for the destruction of the global economy and a communist dictatorship has dropped yet another level.

Unelected EU bureaucrats: “We will ration your power and you will like it. Bread lines are in your future. Private jets are in ours.”

November 12, 2023 11:01 pm

“In other words, the wind farm is obliged to pay the costs of its own intermittency.”

This is the only rational way to manage it. Have all suppliers bid to the same specification, points of delivery, scheduling of downtime for maintenance, regularity of supply. What technology they use should be up to them. If they want to use wind as part of their generation mix, fine.

The standard of supply at the moment is that routinely delivered by coal, CCGT or nuclear. Consistent supply, known amounts of scheduled downtime. Minimal interruptions. Have to require identical points of delivery. If a supplier can deliver to the points specified and to the service specification at a competitive price using wind, fine, accept it. No constraint payments. Deliver 24x 7 with no fluctuations other than those agreed in the spec. Treat all technologies exactly the same.

Same thing when going out to tender for peaker supply. Set the spec and leave the technology up to the market.

As this case is showing, if you do this, no-one will bid with wind or solar.

Global warming may or may not be a thing. What is becoming obvious is that either way, wind and solar are scams. The raw service they offer is unusable. They have only been able to make it financially in the past by passing on their intermittency costs and extra transmission costs to the buyer. And even then, the recent UK auction shows that even then the only way they are viable is if they don’t have to supply even the unusable raw supply to the prices they won the bid with.

You cannot run the electricity supply for modern economies on wind and solar, and this case is a clear example of that fact. Once you get all the costs into the financials, wind and solar are not viable technologies in this application.

Maybe wind is for a croft on an island in the north. Maybe solar is for villages in the middle of the Sahara. But for Europe or North America all the evidence coming in is that its hopeless.

What took everyone so long, and so many billions, to see this?

John Pickens
Reply to  michel
November 12, 2023 11:40 pm

Excellent assessment.
What took so long? An abandonment of fundamental engineering practices.

I submit that wind and solar systems, through their production, operation, maintenance, transmission, and intermittency, are net CO2 positive when compared to CCGT, coal, and Nuclear systems. Prove me wrong. Show me a SINGLE aluminum, steel, concrete, or solar silicon production plant using solely wind and solar power to run the facility. I’ll wait…

sherro01
Reply to  michel
November 13, 2023 1:40 am

Michel,
Many of us in the energy industry knew these things in the 1970s. We found new mines in remote places, so engineers studied electricity options. Diesel brought in by trucks was clearly the winner everywhere remote, so it was used. Intermittency of wind supply was known then. It was known to have low periods of up to weeks that were intolerable for running major plant like rock crushers and smelters, where a power failure is very costly.
Wind and solar did not get past first base. We read the reports from experts and asked more questions, did the economic analyses, the sensitivity studies and decided against intermittents.
What this shows is the damage caused when proper debate is suppressed or cancel cultured. All competent engineers would have recommended against wind and solar apart from some niche operations where lights out might be fun, like remote honeymoon resorts. They probably did recommend against w&S, but were overruled by ignorant dreamers with political bent.
It is time that decision making was returned to the competent. Geoff S

mikelowe2013
Reply to  sherro01
November 13, 2023 2:01 am

As you say, that has been very very obvious to engineers for decades! Maybe most engineers are too sensible and logical to become politicians!

Reply to  mikelowe2013
November 13, 2023 3:48 am

Now that you mention it- there doesn’t seem to be many engineer politicians. There must be at least a few in Congress but I can’t think of any. To be a politician you have to make promises- knowing you can’t deliver on most. Perhaps engineers rebel at making undeliverable promises. They’re too reality oriented.

Bill Abell
Reply to  Joseph Zorzin
November 13, 2023 5:49 am

Boy is that true. Many years ago before I retired (thank God) I was a young lawyer doing jury trials in the USA. All the trial lawyers knew if you were selling emotions and not facts in your side of the case you would never allow an engineer on your jury panel. To them 2+2 is always 4 and no amount of tears is going to change that result.

Dave Andrews
Reply to  sherro01
November 13, 2023 7:34 am

In the oil crisis of the 1980s the UK’s Central Electricity Generating Board (CEGB) dismissed wind as a form of electricity production citing its variability. Today National Grid just seems to go with the flow, though I guess many insiders know that wind can’t really cut it.

Reply to  Dave Andrews
November 13, 2023 10:24 am

Today National Grid just seems to go with the flow, though I guess many insiders know that wind can’t really cut it.

And there’s the issue.

When the wind don’t blow, electrons don’t flow.

Hey, is that an advertising slogan for reliable energy? lol

gezza1298
Reply to  Dave Andrews
November 13, 2023 12:33 pm

National Grid is bound to work with the generating industry that the government rules mandate. It would be so much easier to run a grid of reliable generation and just have some emergency back up such as Dinorwig in case of plant outages. Cheaper too.

Reply to  sherro01
November 15, 2023 7:27 am

Geoff, when these windmills started going up, I felt a bit of a fool. I am not terribly highly qualified, but all my engineering knowledge told me the thing could not possibbly be economically viable. Not at the scale our materials can handle, anyway. So for a while, I was rather abashed, having been proven wrong, not an easy thing for an engineer. I admired the scale of their toys, though…
So, please forgive me the sheer shadenfreude every time I read how right I (or rather the engineers who wrote my text books) was, all the time!
When I walked into college, the latest fashion was to teach us Communication Skills, because “engineers cannot communicate with real people”. They should teach finances, rather. (Not economics, we employ shysters for that)

mikelowe2013
Reply to  michel
November 13, 2023 1:58 am

I hope other authorities in other parts of the globe are sufficiently technically-aware to understand this. But I fear that, at least here in New Zealand, they will not be able to! Too many non-technical people in positions of authority where a modicum of technical knowledge is absolutely necessary!

Reply to  michel
November 13, 2023 3:43 am

“What took everyone so long, and so many billions, to see this?”

Looks to me as if everyone isn’t seeing this. My state of Wokeachusetts is still 100% certain it will save the Earth with its net zero plan by 2050.

Reply to  michel
November 15, 2023 6:41 am

What took so long?
Why should I stop something that milks subsidies by the billion?
Stop the subsidies, stop the corruption.

ferdberple
November 12, 2023 11:30 pm

That is an excellent solution. Making wind farms, not the rest of the grid, pay the cost of intermittent power.
I suspect the data will show it is impossible for wind farms with a 1/3 capacity factor to make money. The will end up buying high and selling low unless backup up with their own fossil fuel generators.

ResourceGuy
Reply to  ferdberple
November 13, 2023 10:37 am

Just drove across Texas. The windmills were mostly not turning and thankfully there were no new wind blade transport deliveries on the highways. That’s progress. The Permian Basin was busy as ever with many miles of service companies lining the corridor.

ferdberple
November 12, 2023 11:36 pm

Imagine for a moment if everything in life had a 1/3 capacity factor like wind. 2 out of 3 times you got in the car to go somewhere it failed to start. 2 out of 3 times the lights didn’t work, the heat or cooling didn’t come on, the water didn’t come out of the tap, the toilet wouldn’t flush.
Why is it that everything else in life with a 1/3 capacity factor would long ago have been scrapped but somehow renewable energy is different.

MichaelMoon
Reply to  ferdberple
November 13, 2023 9:43 pm

This is superb. Or your phone or your computer. The Big Green Lie. And Solar, only turns on between 10 am and 6 pm, sometimes. And Batteries, well there are not any Grid- Scale batteries, and not any time soon if ever. Lead-Acid battery invented in 1869, still used in most cars and trucks. Lithium-Ion batteries will never be grid-scale, not ever close.

Michael

Someone
Reply to  ferdberple
November 15, 2023 8:01 am

One can sell real value or perceived value, and more often a mix of both. Food, clothing, housing, transportation, energy, medical care, education etc. have real value. Religions sell perceived value, but many people are wiling to pay, as long as makes them feel better. Entertainment and vacation industries are in the mixed category to start with. Then, even with things that have real value, a lot of perceived value is mixed in, allowing to charge premium – fashion industry, school rankings, eating at expensive restaurants… Green energy has little to nothing real value, but the customer mostly pays for “saving the world”, for feeling good. This is similar to religions that charge for saving ones sole. The difference is that secular states do not mandate paying dues to traditional religions.

John Pickens
November 12, 2023 11:55 pm

The graphic of windmills and apparent waste byproducts of the systems looks to be an AI generated image. While use of such images can be useful, this website should label them as AI generated when they are used.

The physical waste from wind and PV systems is a very real concern topic, and synthetic images such as this one could skew the truthful assessment of the problems involved.

It could even open up WUWT to claims of falsification, which could be deemed as accurate if the images are taken at face value.

Reply to  John Pickens
November 13, 2023 12:32 am

Yep, for all the people out there that think AI is the future – are you really going to trust a piece of software that can’t even recognise the concept of equidistant rotor blades..?

Reply to  PariahDog
November 13, 2023 3:58 am

I just noticed that a few of the AI wind monsters have 4 blades. That doesn’t happen, does it? Maybe that’s a hint?

Reply to  John Pickens
November 13, 2023 3:53 am

Sounds reasonable- but I think everyone here realizes the images are AI. I like them because they’re often great satire. And, no worry that the climate cultists will ever look at WUWT. They won’t. I can’t even get ordinary, middle of the road friends to look at this site. Just to be safe though I’d agree that a tiny note in the corner should indicate the images are AI generated.

Reply to  John Pickens
November 14, 2023 11:38 am

I’ll repost from November 15:

I really like the mash-up image of Lenin and Hansen. Good satire speaks for itself.

However, I sometimes wonder whether captions aren’t in order to explicitly identify the many AI images you now use to open your posts even though their genesis may seem obvious. I would even enjoy seeing a post on how WUWT comes up with these computer generated grotesques and bizarre mutations of reality. Meanwhile…

WUWT prides itself on deconstructing inaccurate, misleading and self-serving theories and arguments. Your opponents aren’t just the fear mongering evangelists, but the alternate realities they create. As an important news source opposed to the fantasy world of the green proselytes, WUWT should hold itself to a higher editorial standard for the images it uses. Good, honest photojournalism has not gone out of style even if print newspapers have faded from the picture.

Reply to  Bill Parsons
November 15, 2023 7:00 am

No, really!
Got a treatise for us on the violence in Jackson Pollock paintings? The distressing headaches from looking at Picasso’s excretions? The financial wizardry of the famous painter Hunter Biden?
Can you at least show us a sample of the certificate that qualifies people to complain about others’ art?
Does it wants a wee labely on that nice smiling prostituty da Vinci painted?
phllrrrrp!!!

Reply to  John Pickens
November 15, 2023 6:53 am

The graphic… looks to be an AI generated image. … label them as AI generated… synthetic images … could skew the truthful assessment of the problems involved.

open up WUWT to claims of falsification, which could be deemed as accurate if the images are taken at face value.

Now, there’s a special kinda stupid!

November 13, 2023 1:47 am

Good news!

rah
November 13, 2023 1:50 am
Reply to  rah
November 13, 2023 5:49 am

The True Believers in Human-caused Climate Change must be going crazy over this news.

What it means is their Net Zero hopes are dead, and to their minds, the Earth will slip over the 1.5C tipping point and that will be the end of life on Earth. They are contemplating their imminent personal death now. That’s not a good place to be if you truly believe you are close to death.

They need to read WUWT where people like me will inform them there is no evidence that CO2 is dangerous to humans, and then they can relax and enjoy life.

There’s no evidence CO2 is anything other than a benign gas, essential for life on Earth. If you think otherwise, you have been misled. Learn to distinguish between facts and evidence, and speculation, assumptions and assertions.

Speculation, assumptions and assertions are not evidence of anything. Human-caused climate change science is made up solely of speculation, assmuptions and assertions. No evidence involved.

Anyone who disputes this is welcome to present their evidence.

There won’t be any takers because there is no evidence to present. See how easy that is, True Believers? Your fears are not based on any evidence. It’s all in your head.

Reply to  Tom Abbott
November 13, 2023 12:36 pm

Here is one new 2023 study that says that depending on the surface temperature and solar irradiance datasets that one uses, one can show anything from mostly human-caused warming to mostly natural warming.

‘Challenges in the Detection and Attribution of Northern Hemisphere Surface Temperature Trends Since 1850’
https://iopscience.iop.org/article/10.1088/1674-4527/acf18e

The datasets are historical so there is not much that can be done about them.

Reply to  scvblwxq
November 15, 2023 7:11 am

Your first paragraph remind me of an old story.
Hollywood dinner. Present is, say, Oscar Wilde and some tittelating little starlet. At some point he turns to the vapid little thing, and asks if she would sleep with him for a million buck, to which she coquettishly agrees. He then proposes to pay her twenty bucks for some fellatio, to which the young star exclaims: “Sir! What kind of lady do you think I am?” to which the gentleman answers: “My dear, we already know what you are; now we’re quibbling over the price”.
As long as we agree humans are responsible for global warming, all’s good; we can argue about how much after we found you guilty.
Sorry, I’m out. You’se can play that game, not me.

Reply to  Tom Abbott
November 15, 2023 7:03 am

…to their minds, the Earth will slip over the 1.5C tipping point…

…if we switch off all those cooling fans!
Whydya fink we call’em Wind Farms?

observa
November 13, 2023 2:00 am

Filing for reconstruction? That’s the latest Wokespeak for taxpayer slushfunding of anoth er superlative Gummint hand picked winner presumably. Meanwhile the brains trust are softening up rooftop solar owners for some negative pricing-
Flattening the solar duck: Why households should also face negative export tariffs | RenewEconomy
Just in case you were thinking the watermelon heads can’t appreciate a bit of market marginal pricing occasionally here skeptical folks.

Reply to  observa
November 13, 2023 5:52 am

I wondered about that definition.

rah
Reply to  observa
November 13, 2023 9:06 am

Bottom line is when the subsidies run out wind farms are losers.

Bruce Cobb
November 13, 2023 2:03 am

Floating wind to the rescue!

c1ue
November 13, 2023 4:29 am

I think this story is a bit sparse.
The stated problem is that this wind farm has is contractually committed to constant power supply even though it is clearly intermittent power supply.
If that is true, then the people who signed that contract are morons.The contract literally forced the cost of backup onto the wind farm.
But there’s more underneath this layer. A lot of the early wind and solar PV farms would get massive feed-in tariff subsidies. It seems there are none here because otherwise the “market” cost would be lower to this wind farm to “produce power” even if by buying power on the market LOL.
A third question mark is negative or low pricing. If the wind farm is fully exposed to market prices, then the market price for wind electricity generated from 10 pm to 4 am would be very low or negative. Did the wind farm have to eat these negative prices?

November 13, 2023 5:18 am

This is OT, but related:

Plug Power Shares Tank Most in a Decade on Hydrogen Crunch

(Bloomberg) — Hydrogen producer Plug Power Inc.’s shares fell as much as 45% Friday, the biggest intraday decline since 2013, after the company reported worse-than-expected third quarter earnings and issued a going-concern warning.

and

The problems at Plug are the latest in a series of setbacks across the clean energy sector, which has seen market valuations tumble in recent weeks. The biggest manufacturers of wind turbines, solar panels and other renewables are facing their most serious financial challenges in years as interest rates rise and costs surge.

Sure, blame “financial challenges”. 😉

Reply to  Paul Hurley
November 13, 2023 5:54 am

Net Zero is falling down around their ears.

Reply to  Paul Hurley
November 13, 2023 6:46 am

The real beauty is that Ruinables manufacturers are being forced out of business by high energy costs, which they helped to create!

Reply to  Paul Hurley
November 13, 2023 12:38 pm

The water vapor from burning hydrogen is a stronger greenhouse gas than CO2,

Bill Abell
November 13, 2023 5:40 am

LMAO Here is some more Net Zero Commentary “story tip” https://robertbryce.substack.com/p/the-alt-energy-bloodbath-in-10-charts
But no worries the parties will still continue in Davos, Aspen, etc.

Reply to  Bill Abell
November 13, 2023 6:49 am

Wonderful news!

For all the hype, political pressure, and BS behind it, Ruinable Energy will be destroyed by Physics and Economics.

rah
Reply to  Graemethecat
November 13, 2023 3:46 pm

But those that pushed this snake oil upon us will not be held accountable.

Bucky Barkingham
November 13, 2023 7:02 am

Unfortunately the energy consumers do not have a powerful lobby in Washington whereas the power merchants do.

Ronald Stein
November 13, 2023 7:21 am

Fair justice for “The nameplate farce”:
There should be financial penalties for wind and solar power plants inability to deliver at least 90% of their permitted nameplate ratings on an ANNUAL basis, like their backup competitors of coal, natural gas, and nuclear power plants that provide continuous uninterruptable electricity.

Reply to  Ronald Stein
November 13, 2023 6:21 pm

They would have to apply a myriad of derates.

William Howard
November 13, 2023 7:46 am

couldn’t happen to a nicer bunch

November 13, 2023 8:09 am

A small dose of energy justice if wind farms are responsible for their own lack of social utility.

mleskovarsocalrrcom
November 13, 2023 8:18 am

This video lists more reasons to believe Net Zero is Dead.

https://twitter.com/profstonge/status/1724058511301050728

Reply to  mleskovarsocalrrcom
November 14, 2023 11:51 am

It’s a good run-down.

November 13, 2023 8:40 am

The top pic is the future dystopia of green energy.

rah
Reply to  beng135
November 13, 2023 9:08 am

There is nothing “green” about filling landfills with old blades.

bobpjones
November 13, 2023 9:14 am

Bliar, didn’t call the UK, “Rip off Britain” for nothing. And he didn’t even attempt to rectify it.

Reply to  bobpjones
November 13, 2023 10:29 am

Bliar was the rip off king

MarkW2
November 13, 2023 10:06 am

If renewables were financially viable they’d have been used commercially a long time ago. The fact they haven’t reveals everything you need to know. For people with any common sense, that is, which obviously precludes politicians and, it seems, a remarkable number of climate scientists.

It would be laughable except for the huge damage being done to economies and energy security.

ResourceGuy
November 13, 2023 10:31 am

Maybe the coming European recession and financial crisis (UK) will knock some sense into them. I’m not counting on it though.

November 13, 2023 11:43 am

Norway doesn’t really need any wind power, with a small population and loads of hydro. I suspect that Norsk Hydro was leaned on by politicians to join the stampede into “renewables”, and they made the logical choice of demanding a baseload purchase agreement.

And they went to Sweden to do it! So who gets stuck with the cleanup? A cynic might say that it looks like payback for centuries of (moderately benevolent) colonialism that didn’t end till 1905.

Sweden didn’t really need any wind power either, but was hamstrung by its vacillating on-again/off-again nuclear policy (which currently appears to be “sort of” on-again, at least on paper).

Eamon Butler
November 13, 2023 4:28 pm

When the wind companies are not paying for their intermittent nature, the rest of us are.

Bob
November 13, 2023 5:38 pm

More good news. Wind and solar should always be made to pay for their non production. Enforce this one rule and all of this renewable mess will be behind us.

Reply to  Bob
November 15, 2023 7:21 am

Wind and solar should always be made to pay for their non production. Enforce this…

While I agree with the spirit of your utterance, it is impractical; how do you measure non-production, and how many new rules, regulations and agreements do you think will be necessary to lay down all the nitty gritty of THAT policy?
No, cut all subsidies, and only pay them for what they actually deliver. Not capacity, delivery, measured with the standard 1950’s style Wattmeter like every house has.
Good luck finding customers willing to install a second, separate supply, that only works ten hours a week, but that’s another issue.
Just think how far we could have been, had these gazillions been spent on battery technologies, instead of executive salaries and private jets.