Most people are unaware of the funding regime for Wind turbines and other renewables.
It's easy to be 'green' with other people's money.
To make it easy to understand, I've imagined that we want to invest £1000 in funding a big wind turbine project .... but obviously, a large wind turbine is a multi-million pound investment......anyway, here we go:
A man asks you to lend him £1000 for a four year investment on a wind turbine.
You're keen to invest, so you pass him your hard-earned money.
The following year he gives you £250.
He does the same on the second year.
The same happens on the third and fourth year...
You have your £1000 back This is really great.
The fifth year, he comes back again and gives you a further £250 dividend.
The sixth year he gives you a further £250 dividend. This is very good.
The seventh he is back again with a further £250. Fantastic!
On the eighth year it is another £250. This means you have pocketed £2000 so far. 100% return on the money originally invested which you already had back 4 years ago.
Then he comes back on the ninth, the tenth, eleventh years with further £250 dividends each year.
He continues to do this for a total of twenty one years. This is a total of £5250 profit on your original £1000.
You now own £6250. You are a very lucky person.
Considering the fact you had your original investment back after just 4 years
you have also had an income of £5250. This is a 525% return on your original
investment. This is a phenomenal return on the original £1000.
If you had this level of profit in your pension fund, or any other investment, you would be exceedingly
happy; but you havenít, have you? No one has.
Now consider the truth that this very same formula is actually agreed by Government to tempt the Venture Capitalists to build wind farm projects on land and at sea. It needs this huge level of subsidy to overcome the many technical and commercial problems inherent in wind turbines.
The subsidy is called the Renewables Obligation.
An 8 turbine windfarm, costing £16 million pounds to install will recoup a total of £100,000,000 over 25 years. With inflation, this could be more, a lot more.
Now let's go back to our £1000 investment, and consider this ......... when your £1000 was returned to you after 4 years, you could reinvest it back into another wind turbine that had exactly the same level of guaranteed return.
That same money will return even more dividends after four years. The profits that can be made are simply, and unbelievably, enormous from a very small investment.
This is not as silly as it sounds. It is actually happening. This is why wind farm developers are pushing for as many windfarms as they can. All of them are pushing for as many projects as possible. The profit is obscenely and staggeringly enormous.
Now, can you blame the money people chasing this profit bonanza?
Can you also see how naive the EU Parliament and the UK Government are in allowing this scheme to exist?
Who is paying for all this?
You guessed it; we all are, as an extra hidden cost on our domestic fuel bills.
An estimated cost of £6,500,000,000 P.A. minimum by 2020, each year, every year or £110 for every person in the UK.
This doesn't pay your energy bill. You'll have to pay that on top.
Turbine blade fallen off a lorry onto the A696 near Otterburn, Northumberland, May 2012