Given that Ireland now has in total about 3,500MW of wind, we should, if the wind energy supporters are right, see wind energy eroding profits in ESB generation.
But their latest results show that their Generation and Trading business has increased it's profits by € 26 million to € 70 million. Although there was lower running in Moneypoint, this was more than offset by a higher margin in gas plants.
A breakdown of this profit is not given, but we can safely assume that most of it came from fossil fuel generation since that comprises 80% of their business as I have shown above. It is indicative that during the same period, there was an impairment charge (i.e. a write down) of €1.8 million for a wind farm.
So almost a decade on from Ireland's Renewable Energy Action Plan which stated that :
Renewable energy reduces dependence on fossil fuels, improves security of supply, and reduces greenhouse gas emissions creating environmental benefits while delivering green jobs to the economy, thus contributing to national competitiveness.
we can now see that wind energy does not reduce dependence on fossil fuels, rather, it maintains dependence on it.
In reality the financial position of the ESB is pretty dire.A €1.8m writer down for a wind farm is either an exercise in delusion or a belief in fairy tales. In the 2017 Gort Wind Farm accounts there was €19.641m assets valuations left listed in the accounts.After writing down €9,667m in 2017. These Vestas wind turbines have long been decommissioned in Denmark . So the €19.641m should have been written off. Then we get to Garvagh Glebe. In 2017 Garvagh Glebe had losses of €3.115m in 2016 the losses were €.935m. It had asset valuations in the 2017 accounts of €33.504m. The Vestas used on the site have long since been decommissioned in Denmark. All the remaining Assers in Gort Wind Farm and Garvagh Glebe wind farm should have been written off in their 2018 accounts in my opinion.Which for these 2 wind farms would have lead to losses of €43.171m. I am sure there are more wind farms in the ESB's port folio in the same condition. Which puts their published profits in perspective. Given their current electricity generation strategy I cannot see The ESB remaining solvent into the medium term. Investing in offshore generation should see them off. If the states strategy is build wind farms and operate them .Not sell them off at the first opportunity. So the ESB will be forced to write €100's of millions in Wind farm assets down the road. A pretty bleak future. .
ReplyDeleteI used to claim that the climate change hysteria had a life cycle beginning in 2006 with Al Gore's film, peaking in 2013 and would end in July 2019. I was obviously wrong. Then this past week, 2 Extinction Rebellion male protesters climbed onto the roof of a London tube train at Canning Town. The were dragged down off it by an angry crowd. Add this to the Yellow vest protests in France begun over introduction of a carbon tax and the government of Equator being forced to restore a subsidy on fossil fuel and it all adds up to the harsh reality of green hysteria biting. You can google Canning Town Extinction Rebellion dragged from train. My videos No 17 deal with the topic of this thread. Google Val Martin Real True Educational - not fake news
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