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Leaked document reveals ruinous effects of green economic policy
Date 02/07/2010 15:13  Author webmaster  Hits 2847  Language Global
 A leaked document from the Spanish Ministry of Industry, Tourism and Commerce reveals that the Spanish economic downturn has been highly affected by green economics, directly attributing Spain's skyrocketing electricity rates and lack of industrial competitiveness to its renewable energy programme.

Responding to the report, UKIP MEP Godfrey Bloom said today: "All modern economies must have cost effective energy policy if they are to compete. Spain has learned this the hard way. Let us hope the 'Green Fascisti' do not insist Great Britain follows a self destructive energy policy to placate the middle classes working safely at the BBC or the Guardian. Only real jobs can save us now. The expense of so-called Green Energy is gross and ghastly."
The document, in the form of a presentation titled 'Renewable Energy: Situation and Objectives April 2010', acknowledges that "the price of electricity determines the competitiveness of Spanish industry" and attributes the country's 77% price hike mainly to additional costs of renewables.

Citing Eurostat data, the document states that whereas the cost of electricity in Spain had been below the European average, it has now soared to 5% above that average for household electricity and a whopping 17% for the Spanish industry, "mainly due to additional costs of renewables."
The document adds that this "price increase cannot be explained by the evolution of the electricity market price, which has even fallen since 2005."
"The increase in the over-cost paid for renewable energy explains more than 120% of the variation of the electricity bill, and has offset the reduction (of 25%) in production costs of conventional electricity."
Describing these costs as "direct costs", the document indicates the "additional investment in networks to integrate renewables (about 10% of planned investment in the planning) and capacity payments to the modular backup facilities (coal and gas) that are running a smaller number of hours."
It adds that between 2004 and 2010 the amount of premiums (the over-cost paid for renewable energy, in other words, the subsidy) has increased fivefold.  In just one year (2009) "it doubled over the previous year to reach €5.5 bn, equivalent in amount to the entire public investment in R+D+i in Spain."  This means the renewables subsidy roughly equaled the entire cost of producing electricity in Spain.
"The forecast for 2010 is € 6.3bn. With operational facilities, the renewable sector will receive more than €126 bn in the next 25 years."

This non-public document confirms last year's independent study on Spain's 'green economy' programme which found that 2.2 jobs were lost for every job created by the state.  

Translation supplied by Christopher Horner, including source.

See also:

The EU's response to global warming is a costly mistake (Telegraph)