Link Between Electricity Prices & Renewable Energy Completely Warped In Forbes Article
All you have to do is head over to the
Department of Energy’s electricity cost graph to see that onshore wind power has a minimum LCOE of 5¢/kWh and a median of 6¢/kWh. That’s the lowest median LCOE in the United States of any electricity source other than natural gas, which is at 5¢/kWh. However, that doesn’t take into account the cost of natural gas pollution, which harms our air, our water, and our climate. Surely, natural gas is actually considerably more expensive for society than
wind power. As just another indication of that, a study for the Mid-Atlantic United States found that
adding more wind power to the PJM electricity grid would save ratepayers nearly $7 billion per year within a decade. “The report found that doubling the wind generation already planned in the region would lower fuel costs and drive down prices by $1.74 per megawatt hour (MWh) in the largest wholesale competitive energy market in the world, PJM, which includes all or parts of 13 states and Washington, DC.”
When it comes to solar, an important thing to note is that rooftop solar panels compete with retail electricity not wholesale electricity. When that is considered, solar is often cheaper than the norm. Furthermore,
solar PV costs have fallen off a steep cliff in recent years. Recently, a Minnesota judge ruled that a
solar power project should be chosen over several natural gas projects because it offered ratepayers a better deal (money-wise). Yep, a solar power project in a northern state offers cheaper electricity than several natural gas projects on a
wholesale level. In Austin, a
new solar power plant is coming in at under 5¢/kWh under a new 25-year power purchase agreement (PPA)!
But let’s get back to the main thing that Ms Hanson was attacking: Renewable Portfolio Standards (aka Renewable Energy Standards). A Tigercomm representative, who notified me of this horrible
Forbes/Americans for Prosperity article, also passed along a useful resource on this specific matter. Ohio, one of the 37 states that have a Renewable Portfolio Standard, has seen repeated attempts to remove its Renewable Portfolio Standard (by the likes of Americans for Prosperity). In the midst of a recent attempt, an economist with the state’s utility regulator analyzed the results of the law and found that renewable energy was actually pushing down the cost of wholesale electricity. Yes, not only has renewable energy not been increasing electricity prices in Ohio, but it has been reducing them.
Those endorsing continued use of fossil fuels always thought that the cost would be lower with the fossil fuels, and people would ignore the costs of asthma and other externals. Now we see solar and wind are actually cheaper in many cases that coal or natural gas, and have no externals. And they continue to get cheaper every quarter. As the grid scale batteries get factored into the system, both at the customers door, and at the generating source, solar and wind get cheaper yet.
