Johnny Porritt

Quite garglingly good post from the Old Etonian Baronet.

2. The United States makes a particularly interesting case study for Chris Huhne. So desperate is the US Administration to promote new nuclear that it has offered tax credits which amount to more than 100% of construction costs – and even so interested utilities have been unable to raise any private capital whatsoever. Referring to this as ‘nuclear socialism’ – and there’s a horrible thought for our free-marketeering Lib Dems! – Amory compares this incomparable government largesse with the support programme for Chevrolet’s new electric vehicle, the Volt. This will be retailing at $41,000, with a tax credit from the Government of $7,500. “Imagine if the tax credit were $50,000!”.

3. By contrast with this lacklustre story, markets for renewable, energy efficiency and co-generation (or Combined Heat & Power as we call it) are booming. Grid-connected solar power has managed 60% average annual growth for a decade;

He doesn\’t tell us when the 100% credit came in: but I have my suspicions that it was very recent.

Much more importantly though, he doesn\’t tell us what subsidies solar PV gets.

Currently in the UK they get a feed in tariff of 45p. Conventional power costs around 10p. So solar gets a 350% subsidy as a percentage of its output. Hugely larger than any subsidy ever thought of for nuclear: not so much of a surprise that there\’s been more roll out of solar than nuclear really….

2 comments on “Johnny Porritt

  1. Porrit’s ignorance iss howing, why would a pigouvian subsidy be horrifying to a free marketeer like Huhe? If there’s one person in the cabinet who definitely understands such things it’s Huhne.

    He has, of course, rejected the idea of public subsidies for nuclear, but that sort of thing is what he’d do if he favoured them.

  2. Except for a proposed bill in the USA Senate, which has a less-than-zero chance of passage, I cannot locate the “100% tax credit” for nuke that is mentioned. Anyone?
    As for the rest of Porrit’s blog-I suppose anyone (or country) that accepts Lovins views as accurate and relies on Rickover’s 57-year old remarks about the problems with the first commercial reactor as being relevent today just isn’t being coherent.
    Incidently, neither Duke or AEP would have any problem whatsoever financing their next Nuke-that’s just silly. Anyway, most of the USA utilities are very busy looking for CC gas plant sites.

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