Cost of electricity to double with renewable energy / News / The Foreigner

Cost of electricity to double with renewable energy. Experts blame political eagerness. The tax-payer has to stump up once again. VAT, income tax, and other prices are high in Norway, and now the price of renewable energy also looks set to take a bite out of your household economy. Will sparks fly? According to Bergens Tidende (bt.no), it will cost between 90 and 100 billion kroner to reach the zealous environmental targets the politicians have set themselves by 2020. In real terms, that means a cost of 20,000 per person.

renewable, environmentally-friendly, energy, windmills, prices, electricity, rise, eu, directive



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Cost of electricity to double with renewable energy

Published on Tuesday, 1st September, 2009 at 19:30 under the news category, by Michael Sandelson   .
Last Updated on 7th September 2009 at 20:14.

Experts blame political eagerness.

Mars Hill Windmill Farm
Mars Hill Windmill Farm
Photo: Extra ketchup/Flickr


The tax-payer has to stump up once again. VAT, income tax, and other prices are high in Norway, and now the price of renewable energy also looks set to take a bite out of your household economy.

Will sparks fly?

According to Bergens Tidende (bt.no), it will cost between 90 and 100 billion kroner to reach the zealous environmental targets the politicians have set themselves by 2020. In real terms, that means a cost of 20,000 per person.

“This commitment will end up costing the consumer in the end. Either the price of electricity will have to be raised, or consumers will have to be taxed in another way in order to finance it,” Espen Borgir Christophersen, state-owned Enova’s district leader for renewable energy tells the paper.

Finn R. Førsund, professor of economics estimates the price of green energy from sea-based windmills will be approximately 1.50 kroner per kilowatt. This is five times what the spot price was before the weekend.

Blowing in the wind

Gunnar G. Løvås, investment director in Statnett – Norway’s national owner and main grid operator – explains it’s the EU’s renewable energy directive that will cause prices to rise, and the directive is something that Norway may have to commit itself to. Statnett has already expanded its investment plans accordingly.

“We estimate that Stanett will have to invest up to 40 billion towards 2025 in both the central Norwegian network and international power lines,” he says.

The reasons for the new power lines are plans for thousands of land-based windmills, bio energy, increased hydro-electric power production effectiveness, and economising on energy use.

But the costs don’t stop there. The paper says politicians would like Norway to be a world power when it comes to sea-based windmills. Additional power lines will have to be built for these. Statnett estimates the cost to be 30-40 billion for those just in the south part of the North Sea. If ambitious plans for the whole of the North Sea area are realised, the cost increases to 150 billion.

Not exactly a drop in the ocean.




Published on Tuesday, 1st September, 2009 at 19:30 under the news category, by Michael Sandelson   .
Last updated on 7th September 2009 at 20:14.

This post has the following tags: renewable, environmentally-friendly, energy, windmills, prices, electricity, rise, eu, directive.





  
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