Wednesday, November 7, 2012

Low power prices threatens Norway's green targets, and Quebec's Finances

An article from Reuters, on Norway's struggle to get wind capacity built economically, coincided, today, with an article from L Presse in Quebec with the ongoing purchase of wind capacity despite almost identical depressed market pricing and system overcapacity to the extent Quebec pays a Gas Generator to remain idled.
Quelle surprise, it's TransCanada!

Low power price threatens Norway's green targets | Reuters:

Government support is aimed at increasing the return on investments from electricity sales revenues to make wind power economical, but it can fund only a part of prospective investments.

"Without subsidies, (wholesale) power prices need to be around 600 crowns ($100) per megawatt-hour to make things fly," Andreas Aasheim, an advisor to Norway's wind energy association Norwea said.

But lasting wet weather periods can push power prices down, as was the case this year, reducing the appetite for investment into capital-intensive wind power.

Nordic electricity prices are so low that even with the subsidy, the total income from renewable power generation currently is only around $72.9 a MWh, lower than the cost of producing wind power which is between $90 to $110 per MWh.

As a result, only one tiny 1.6 megawatt (MW) wind power plant with two 0.8 MW capacity turbines has received green certificates in Norway since a joint Norwegian-Swedish subsidy program was launched in January 2012.

Continue Reading at Reuters
Hydro Quebec Struggling with Expensive electricity surplus (en francais)

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