From NOT A LOT OF PEOPLE KNOW THAT
By Paul Homewood
David Turver explains why energy bills will keep on rocketing:
https://insider.iea.org.uk/p/cost-of-renewables-to-double-by-2030
His analysis is all based on official projections from the OBR and NESO.
First of all we have the various direct subsidies for renewables, which will increase from £11.8bn in 2024/25 to £15.2bn in 2031/31:
Some of the RO bill is being funded out of general taxation for the next three years, but as they are still a cost they are included in the analysis.
On top of this bill, the cost of grid upgrades and balancing will also increase massively because of the rollout of wind and solar power.
NESO confirmed last September that transmission charges would increase to £13.6bn in 2030/31, from £4.2bn in 2024/25:
https://www.neso.energy/document/367801/download
NESO also estimate that grid balancing costs, such as constraint payments and the cost of reserve provisions, will triple to £7.3bn.
On top of that is added the cost of running the Capacity Market, paying for standby capacity. The OBR say this will increase from £1.3bn to £4.4bn.
Adding the three elements together, the total cost of grid integration will rise from £8.0bn in 2024/25 to £25.0bn in 2030/31:
In total, including direct subsidies, Net Zero will increase the cost of electricity by £20.3bn :
That is equivalent to about £750 for every household in the country, of which about a third will feed through onto our energy bills.
The rest, of course, the public will still have to pay for one way or another, whether through higher taxes, higher prices and lost jobs.
