SIR - The Saltaire Turbine seems an excellent scheme. However, Bradford Council has historically been optimistic in its predictions of return on capital employed and it is therefore reassuring that a council officer unequivocally states “ unless it pays for itself, it will not go ahead” – which indicates that viability is as yet unproven.
The figures quoted disturb me. The cost of £1,200,000 is to be repaid over 12 years which is inclusive of capital repayment, interest charges and operating expenses. That is guesstimated at £130,000 per year.
The electricity produced would supply 100 homes, but as the wholesale price of electricity is 60 per cent of the retail price, to get the £130,000 back from the grid operator, each household would have to pay £2,100 per year and presumably have to pay for gas as well.
The 100 households cannot be expected to pay more than £650 pa for electricity which, allowing for the grids cut, would give the generator £39,000 per year.
Therefore, taking into account capital repayment, interest cost and operating costs, it would be 100 years before any profit is generated for Bradford Council.
I really do hope that I am wrong, but I don’t think so.
John Pashley, Westcliffe Avenue, Baildon
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