The energy crisis. It’s been going on for months now, and isn’t showing any signs of abating. Suppliers are going bust. Prices are going up. And it’s customers who are being hit the hardest. How can owning part of a wind farm help protect you from the volatile price market?
Why have prices been going up?
Global energy prices surged due to the perfect storm of international geopolitical events. Post covid recovery in Asia increased demand for gas, at the same time that gas supplies from Russia were reduced. Unplanned outages in UK power plants exacerbated the situation.
Regardless of the root cause global events are forcing energy prices up for households across the UK. The energy price has risen by a record 54%, to £1971, nearly double the level a year ago.
The energy crisis has emphasised how urgently we need to green our grid and end our reliance on fossil fuels. The shift to renewable power needs to be accelerated.
If you can generate your own low cost, stable priced green electricity, you’re protected from volatile international energy markets.
Why do green tariffs go up if gas prices rise?
People have questioned how the price of green tariffs have gone up when the wind farms and solar parks they buy electricity from don’t use gas to generate power. Most green tariffs buy electricity from wind farms and solar parks at the market price for electricity. So even though the cost of generating electricity from a wind farm or solar park doesn’t increase when power prices rise, the amount they get paid for their power does.
How can Ripple help stabilise your bills?
Onshore wind is one of the cheapest forms of energy. Once the wind farm is built, the cost of it generating electricity each month is low and really stable. And, importantly, isn’t affected by the gas price.
Owning part of a wind farm with Ripple gives you access to your own green, low cost and stable priced electricity for the long term.
With Ripple, your energy supplier buys your electricity from your wind farm at its low and stable operating cost. The difference between this price and the volatile market price is passed onto your electricity bill , every month, for the 25 year lifespan of the wind farm. We estimate on average the saving is around 4-5p/kWh over the wind farm’s lifetime, around a 23% reduction in your electricity bill.
Graig Fatha members set for record savings in first year.
When wholesale electricity market prices are high, like they are now, Ripple members savings are high. The members of our first wind farm, Graig Fatha, are set for bumper savings in their first year. Savings in the first year of operation will be 9.5p per kWh, more than triple the level expected when the wind farm was launched in summer 2020 (when prices were particularly low).
A typical household owning enough of the wind farm to generate as much electricity as they use, will save around £275 on their bill in the first year.
Ripple members’ savings are high when wholesale prices (and headline bills) are higher, and lower when energy prices are lower. The net effect is to stabilise bills over the long term. Ripple members still pay grid charges, taxes and levies. Wind farm ownership can’t reduce these non-energy bill costs.
As energy prices reach record levels, our next project will give even more households the opportunity to reduce and stabilise their electricity bills for the long term. With over 3,500 reservations so far we are expecting our second wind farm to sell out fast once it is open to the public later next month as people look for new solutions to stabilise their bills and green their homes. Reserving your shares ahead of the full public launch is the best way to secure your place.