Have 250.000 Spanish jobs been sacrificed for the folly of saving the planet?

Spain is one of the leading countries in Europe for Renewables. In 2013 output broke new records, with renewables accounting for 21.1% of Spanish electricity demand, with wind and hydroelectric power production increasing by 12% and 16%, respectively on 2012.

This is to the detriment of the Spanish economy for three financial reasons.

First is the huge amount now likely being spent on wind power subsidies. In 2013 output from wind farms was about 54GWh, or 12% higher than the 48.5GWh produced in 2012. Assuming an average subsidy of €54MWh (the rate for onshore wind turbines in the UK) that would be €2.9billion in subsidies.

Second, there is the huge amount now likely being spent on solar power. Spain is home to the massive Anadasol Solar Power Station. The three sections are expected to produce 495GWh per year, which at 38% of capacity seems a tad high. This will have a guaranteed price of €270 per megawatt. In the UK, the wholesale price is about £45 or €60 a megawatt. The excess cost (or subsidy) is therefore €210MWh, or €100million a year. At this rate, the total 8.2GWh produced by photovoltaics would have attracted a subsidy of €1.7bn in subsidies.

The combined estimated subsidy is worth €4.6bn is equivalent to 0.3% of GDP. Total subsidies are likely to be much more.

Third is the disastrous foray in solar panels lead to huge amounts of investments in solar schemes. In 2008 there were an estimated 30,000 jobs supported in the boom years. These jobs disappeared with the bust. With this sudden boom, caused by extremely generous subsidies, the quality of the panels was poor and overpriced. Many investors would not have got their money back even if the subsidies had remained. Now they will be saddled in debt, with no income. These borrowing were often state-backed. According to Bloomberg this fund was €24bn at the end of 2011. If some of this has to be written off, then there could be a material impact on deficit reduction plans, and thus the levels of unemployment. Government backing loss-making projects costs jobs.

This claim can be cross-checked. In the same Bloomberg article the Renewable Energy Producers Association (Asociación de productores de energías renovables or APPA) was quoted as saying that the renewables industry sustains about 110,000 Spanish jobs. In 2011 Verso Economics, a Kirkcaldy-based outfit, wrote a report about the effect of renewables jobs in Scotland and the impact on the wider UK. Whilst the report found that the jobs in renewables were largely neutral with Scotland – one job lost in the wider economy for each gained in renewables – in the wider UK economy for each job gained in Scottish renewables 3.7 jobs were lost in the wider UK economy. (report here, and reported at Caledonian Mercury, BBC and Scottish Sceptic) If this were replicated in Spain, the net impact of 110,000 jobs in renewables would be 400,000 jobs less jobs in the wider Spanish economy. Without renewables more than 250,000 people could be in work, or over 1% of the labor force.

Why I call Spain’s attempt to save the planet a folly, are the same reasons for calling Britain’s attempts a folly. Any emissions reductions in Europe will be more than offset by many times over from the emerging economies elsewhere. In reducing emissions, Spain will increase unemployment and reduce growth. But future generations will still bear over 80% of any consequences of warming than if no rich country did anything. In the current situation, I believe that a lot of Spanish people might object to their country being called “rich” anyway.

Update 20/11/14 – minor editing.

10GW of extra offshore wind turbines by 2020 – The Real Costs

Projected 10GW in offshore wind turbines by 2020 to add 5% to electricity and gas bills, and reduce UK CO2 emissions by nearly 2%. Cost to exceed benefits by 3.8 or 27 times.


The Telegraph has an article “Offshore wind farm scrapped due to fears over birds

A 200MW extension to the 630MW London Array has been abandoned “over the impact on the red-throated diver, a bird classified as rare or vulnerable by the European Commission“. However,

Ministers say they want between 8GW and 15GW built by 2020, up from 3.6GW now, and suggest a total of about 10GW is most likely.

My comment on this (with references) is

Some statistics to put the 10GW of extra offshore wind power by 2020 in perspective.

Offshore wind power operates at about 35% of nameplate from DECC figures1.

So that will produce about 30,660,000 Mwh of electricity.

At present each megawatt of offshore wind gets 2 renewables obligations certificates, worth £842,8. So that will add £2575m to bills, or about 5%3 of 2012 Electricity AND Gas bills.

But this will help reduce the UKs Carbon emissions. How much?

RenewableUK reckons that each megawatt hour of renewable electricity saves 430kg of CO2 emissions4. So that equates to 13.2 mt, or 1.84% of the 716.4 mt6 1990 baseline emissions.

This has a value as well, called the “social cost of carbon”. The Stern Review reckoned $85t/CO25. The UNIPCC said the average was $126. So that is £675m or £95m towards saving the planet for future generations. Costs are either 3.8 or 27 times the benefits.


The costs of £2575m are not the full costs. There are also extra transmission costs, and backup capacity. A more sceptical view would put a much lower social cost of carbon than the $12 of the UNIPCC.

From note 5, the marginal abatement costs of offshore wind turbines are 3.8 times Stern’s estimate. Perhaps somebody should ask Lord Stern where the marginal abatement costs of less than $85 per tonne of CO2 are to be found. There are millions of households and businesses in this country who would love to know.


  1. DECC stats here, spreadsheet “Renewable electricity capacity and generation (ET 6.1)”. Offshore wind was 35.2% of nameplate in 2012.
  2. https://www.ofgem.gov.uk/ofgem-publications/58136/buy-out-price-and-mututalisation-ceiling-201314.pdf.
  3. In 2012 the big six energy companies charged about £44bn to all customers. 5% rise assumes they have 85% of the market. Graph here, from this article.
  4. From http://www.renewableuk.com/en/renewable-energy/wind-energy/uk-wind-energy-database/figures-explained.cfm, last section “CO2 Reductions (p.a.) in Tonnes”.
  5. The Stern review noted on pages xvi-xvii

    Preliminary calculations adopting the approach to valuation taken in this Review suggest that the social cost of carbon today, is of the order of $85 per tonne of CO2……. This number is well above marginal abatement costs in many sectors.

  6. The UNIPCC AR4 Summary for Policymakers in 2007 stated on page 22.

    Peer-reviewed estimates of the social cost of carbon in 2005 average US$12 per tonne of CO2, but the range from 100 estimates is large (-$3 to $95/tCO2).

  7. Source World Bank data. UK data at http://data.worldbank.org/country/united-kingdom
  8. The current banding is at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/211292/ro_banding_levels_2013_17.pdf

First-time comments are moderated. Please use the comments as a point of contact, stating this is the case.

Kevin Marshall






British-Irish Council taken over by Climate Alarmists?

The Irish Times has carried a report that

THE BRITISH government could massively subsidise the Irish wind energy industry under proposals to be considered in London today.

Would that be the same British Government who are struggling to control a record budget deficit? A Government that presides over a territory which is in many parts extremely windy. Where would these windmills be located? The proposal would be offshore. So the UK is a short of coastline then?

Who put forward this proposal? The famous British-Irish Council. Their website is here.

And here is a screen-shot of that homepage.

It strikes as a little odd that the website should be hosted in Jersey. Or if you do a Google search you will find lots of references to renewable energy and the Isle of Man. Promoting the minor islands and wind power would be a major part of its’ purpose then?

To quote the website

Priority areas of work

At its first summit in London in December 1999, the council decided on a number of priority areas of work which would benefit from such co-operation. While the list is not exhaustive, it includes:

  • agricultural issues
  • health
  • regional issues
  • consideration of inter-parliamentary links
  • energy
  • cultural issues
  • tourism
  • sporting activity
  • education
  • approaches to EU issues
  • minority and lesser used languages
  • prison and probation issues

    So that would be a no then.

    It would seem that the original purpose of the British-Irish Council has been lost and that the organisation has been taken over by some Climate Alarmists from the Isle of Man, Jersey or Scotland. Perhaps the Council is no longer fit for purpose.


    The actual meeting in London was full of the wind issue. See the Irish Times and BBC Wales.