JFlorio wrote:
Thank you. I doubt if she/it/he understands. If you have to subsidize it it's not worth trying. If the green energy sector becomes profitable it will then become viable. Until then it's a waste of money.
As usual, I can not get graphs and maps to copy.. sorry about that..
2. Wind & Solar Are Actually Even Much Cheaper Than Dirty Energy (More So Than Lazard Shows)
The estimates above are supposedly “unsubsidized,” but if you include social externalities as societal subsidies (I do), the estimated costs of fossil fuels and nuclear energy are hugely subsidized in those charts.
A study led by the former head of the Harvard Medical School found that coal cost the US $500 billion per year in extra health and environmental costs — approximately 9¢/kWh ($90/MWh) to 27¢/kWh ($270/MWh) more than the price we pay directly. To fool yourself into thinking these are not real costs is to assume that cancer, heart disease, asthma, and early death are not real.
The air, water, and climate effects of natural gas are not pretty either. On the nuclear front, the decommissioning and insurance costs of nuclear power — unaccounted for above — would also put nuclear off the chart.
On the renewable front, costs to overcome intermittency of renewable energy sources (basically, presuming a very high penetration of renewables on the grid) are also not included. Once that is a significant issue (at which point solar and wind will be even cheaper), low-cost demand response solutions, greater grid integration, and storage will be key solutions to integrating these lower-cost renewable sources to a high degree.
Back to Lazard’s assumptions, note that the IGCC and coal cost estimates do not include the costs of transportation and storage.
Given these assumptions unrealistically favoring fossil fuels and nuclear energy, including subsidies for solar and wind is actually an even better way to look at costs of these electricity options. However, if you included historical subsidies as well — coal, natural gas, and nuclear have received a ton (well, many, many tons of subsidies) — dirty energy options would again look worse. In any case, here’s Lazard’s cost comparisons with current subsidies:
The low costs of solar power and wind power crush coal power, crush nuclear power, and beat natural gas by a sizable margin. Click to embiggen.
Now, looking at these comparisons, one might wonder how any dirty energy power plants get built today. I would say it comes down to the lack of logical behavior and foresight in the market, but that’s a topic for another day.
On a smaller level, though, as Nexus Media pointed out, part of it comes down to lack of grid integration across the United States and varying cost factors in different jurisdictions. More specifically, “a tool from the Energy Institute of the University of Texas shows the cheapest kind of new power plant by county, accounting for land available to deploy a particular technology.” Here’s the result without any extra social or environmental costs added in:
The scale is hard to read, but that light green is wind power, the purple heavily shown in the Southwest is utility-scale solar, the grey and purple speckled around the Southeast is utility-scale and residential solar, the light blue is nuclear, and the abundant red/orange is natural gas.
And here’s the result with modest environmental costs added in:
The scale is hard to read, but that light green is wind power, the purple heavily shown in the Southwest is utility-scale solar, the grey and purple speckled around the Southeast is utility-scale and residential solar, the light blue is nuclear, and the abundant red/orange is natural gas.
5. People Can Get Lower Prices But More Jobs With Solar & Wind
Whether American, British, Canadian, Australian, Indian, German, Dutch, French, Spanish, or [fill in the blank], solar and wind power don’t just mean lower prices — they also typically mean more jobs. Much of the price of dirty energy power plants is in the fossil fuel — the physical resource. When we buy that fuel, much of the money goes to the billionaires and multimillionaires who “own” the fuel — the coal mines and the natural gas wells.
Sunshine and wind, of course, are free, but distributed solar and wind power plants have to get built and installed — those are things humans do. When we pay for solar and wind power plants, we pay for human labor, and often help create or support local jobs.
We don’t actually have to choose between low prices or jobs or protecting our air, water, and climate — we get all of those things with renewable energy options like solar and wind energy.