Future energy prices mean better returns for turbine owners
November 18, 2011
Interesting to read this week that a widely reported industry survey* predicts wholesale electricity prices will rise by at least 43% over the next ten years. And at Westminster, MPs have unanimously supported a backbench business motion urging the government to take action on rising fuel prices.
Nine out of ten of the independent generators, energy buyers and brokers questioned said they believed that in one decade prices will be higher in real terms than in 2011. Almost one third predicted prices of £80/MWh, that’s more than 60% more than now. The average price predicted is around £70/MWh – a cost increase of 43%. To make a comparison, over the past year the current average wholesale price of electricity has been around the £49/MWh mark, in itself a doubling over the previous decade.
If such an increase were passed on at the retail level pockets are going to be hit hard! This is an interesting scenario though for “green revolutionaries” – those who have, or intend to install their own renewable energy supply. Our customers install Gaia-Wind turbines for many reasons but the opportunity to save on energy bills is high on the list.
At Gaia-Wind we find that customers are very keen on potential energy savings – through being able to first, use their own energy generated off-grid and of course, selling any surplus back to the grid.
On a site with average annual energy production between 25,000-40,000 kWh, the average payback time currently on a Gaia-Wind 133/11kW turbine is between 4-8 years in the UK (based on current tariff rates and using 50% of the energy on-site). And not forgetting the environment, a Gaia-Wind small wind turbine generating 30,000 units of green electricity per year, will offset around 17 tonnes of CO2 emissions. This is sufficient to erase the carbon footprint of the average 4 person household.
Predicted price increases of more than 60% certainly make the proposition of generating and consuming your own electricity much more attractive. Moving forward and as technology develops, you should also, in the longer term, focus on maximising your own electricity consumption, through for example clever heating systems. More of this in future blogs.
Its well worth taking some time now folks to work out the numbers.
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