NewEnergyNews: NEW ENERGY CUTS UK ELECTRICITY PRICE

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    Friday, October 23, 2015

    NEW ENERGY CUTS UK ELECTRICITY PRICE

    Renewables bring down the wholesale cost of energy, finds new study

    October 19, 2015 (Blue & Green Tomorrow)

    “…[Concerns over the cost of renewable subsidy schemes have led to significant policy changes and cast doubt over future deployment of renewables. Whilst these support mechanisms ultimately increase consumer bills in the short term, renewables also act to reduce them by driving down wholesale electricity prices – a phenomenon described as the Merit Order Effect. Studying it shows renewables are cutting the wholesale price of energy and lessening the impact of subsidies on bill payers. Wind and solar reducing consumer bills An investigation into the Merit Order Effect from Good Energy] shows that wind and solar brought down the wholesale cost of electricity by £1.55 billion in 2014…That meant an overall net cost for supporting the two renewable sources last year was £1.1 billion, 58% less than the cost reflected in the capped budget set for green subsidies…Experts from the University of Sheffield have backed the report…” click here for more

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