January 6, 2011

Everything you need to know

Everything you need to know about the absolute absurdity of the global warming induced green energy market is in the first two paragraphs of this Bloomberg article "U.K. Solar Power Installations Reach Record in 2010 After Incentive Starts"

The U.K., which had its 12th coldest year on record in 2010, installed more solar power than in any other year, data from the energy regulator Ofgem show.

Solar panels with the capacity to generate more than 42 megawatts of electricity were registered to receive above-market power prices last year, according to data e-mailed from the regulator Ofgem. The facilities were spurred starting in April by a government program offering as much as 12 times the market rate for power from renewable sources....

Considering that this entire "green energy" market is primarily the result of the global warming hyperbole it is more than ironic that the article begins with the reminder of the lack of "robust" proof of the theory. But the painful reality to the depths of insanity that the world has fallen  is the absolute giddiness of the writer at the subsidized lengths governments, in this case the UK, are going in order to promote an unsustainable market in this "green energy" fraud. Twelve times the market rate.

The article is laced with absurd little tid bits of tax payer subsidized economic flights of fantasy. An entire market based totally and completely on government subsidies yet it is treated as if it is the new Microsoft ready to set the world afire due to some entrepreneurial genius. When in fact it is all precariously maintained by the political power of a crumbling statist system desperately groping to maintain control over an ever more skeptical and enlightened world.

Consider this excited comment of one of the participants in this make believe world.

“They’ve been a complete game-changer in the market,” Sowden said. “We’ve seen more than a threefold increase in the number of companies registered as installers. It started 2010 at about 600, and ended at over 2000.”

Well I guess so, it is easy to generate a market for something when you are paying far over the market price for the product and gauranteed with the public's money;

The guaranteed prices were introduced by the Labour government, which in May lost a general election, ceding power to a coalition of Conservatives and Liberal Democrats. The new government, in an October review of spending across all departments, said it would maintain the tariffs for now.

The tariffs are guaranteed for 25 years and vary according to capacity and whether panels are fitted to old buildings or new ones. They’re as high as 41.3 pence per kilowatt-hour, about eight times the current day-ahead U.K. power price and 12 times the power price on April 1 when the system began.

But that is not all there is to our our fantasy marketplace in our make believe world of economics. Consider this next sentence being written in an alleged business journal:

The tariffs are “positive for investors in renewable technologies because it gives much more certainty on the price they can achieve,” Steve Jennings, who leads the utilities consulting practice at PricewaterhouseCoopers in London said in a telephone interview. “Investment decisions need certainty in order for developers to invest in these installations.”

Yes I guess in a world where your service is guaranteed by other peoples monies and the product is bought for more than twelve times what the rest of the market is, investors would have some certainty in investing, now wouldn't they? So much for the risk/reward factor, it is all reward paid for by an awakening public.

It is only fitting that a make believe economic model ought to be used to fight a make believe threat. The only problem is that like all things built on sand, they are eventually washed away with the tides of reality.

1 comment:

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