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….