Power Shock: Chicago University Proves Unreliable Wind & Solar Send Power Prices Soaring

Adding chaotically intermittent wind and solar to your grid is a guarantee of rocketing power prices. The battle between the Big Three wind and solar ‘superpowers’ – South Australia, Germany and Denmark – is all about whether its South Australians, Germans or Danes who get to suffer the world’s highest power prices. The current ‘winner’ is South Australia.

Try as they might, RE zealots have a hard time proving that wind and solar aren’t responsible for out of this world power prices – see this post, for example: South Australia’s 50% Renewable Energy Fail: World’s Highest Power Prices Caused by Subsidised Wind & Solar

Meanwhile, back on Earth, a team from the Chicago School of Economics have just proved the bleeding obvious.

Here’s Michael Shellenberger detailing what STT followers know all too well.

Unreliable Nature Of Solar And Wind Makes Electricity More Expensive, New Study Finds
Forbes
Michael Shellenberger
22 April 2019

Solar panels and wind turbines are making electricity significantly more expensive, a major new study by a team of economists from the University of Chicago finds.

Renewable Portfolio Standards (RPS) “significantly increase average retail electricity prices, with prices increasing by 11% (1.3 cents per kWh) seven years after the policy’s passage into law and 17% (2 cents per kWh) twelve years afterward,” the economists write.

The study, which has yet to go through peer-review, was done by Michael Greenstone, Richard McDowell, and Ishan Nath. It compared states with and without an RPS. It did so using what the economists say is “the most comprehensive state-level dataset ever compiled” which covered 1990 to 2015.

The cost to consumers has been staggeringly high: “All in all, seven years after passage, consumers in the 29 states had paid $125.2 billion more for electricity than they would have in the absence of the policy,” they write.

Last year, I was the first journalist to report that solar and wind are making electricity more expensive in the United States — and for inherently physical reasons.

Solar and wind require that natural gas plants, hydro-electric dams, batteries or some other form of reliable power be ready at a moment’s notice to start churning out electricity when the wind stops blowing and the sun stops shining, I noted.

And unreliability requires solar- and/or wind-heavy places like Germany, California, and Denmark to pay neighboring nations or states to take their solar and wind energy when they are producing too much of it.

My reporting was criticized — sort of  — by those who claimed I hadn’t separated correlation from causation, but the new study by a top-notch team of economists, including an advisor to Barack Obama, proves I was right.

Previous studies were misleading, the economists note, because they didn’t “incorporate three key costs,” which are the unreliability of renewables, the large amounts of land they require, and the displacement of cheaper “baseload” energy sources like nuclear plants.

The higher cost of electricity reflects “the costs that renewables impose on the generation system,” the economists note, “including those associated with their intermittency, higher transmission costs, and any stranded asset costs assigned to ratepayers.”

But are renewables cost-effective climate policy? They are not. The economists write that “the cost per metric ton of CO2 abated exceeds $130 in all specifications and ranges up to $460, making it at least several times larger than conventional estimates of the social cost of carbon.”

The economists note that the Obama Administration’s core estimate of the social cost of carbon was $50 per ton in 2019 dollars, while the price of carbon is just $5 in the US northeast’s Regional Greenhouse Gas Initiative (RGGI), and $15 in California’s cap-and-trade system.
Forbes

Download The Working Paper (PDF)

Or, simpler still, see below: the Australian wind and solar experience…

About stopthesethings

We are a group of citizens concerned about the rapid spread of industrial wind power generation installations across Australia.

Comments

  1. Reblogged this on Climate- Science.

  2. Reblogged this on ajmarciniak and commented:
    Adding chaotically intermittent wind and solar to your grid is a guarantee of rocketing power prices. The battle between the Big Three wind and solar ‘superpowers’ – South Australia, Germany and Denmark – is all about whether its South Australians, Germans or Danes who get to suffer the world’s highest power prices. The current ‘winner’ is South Australia.

    Try as they might, RE zealots have a hard time proving that wind and solar aren’t responsible for out of this world power prices – see this post, for example: South Australia’s 50% Renewable Energy Fail: World’s Highest Power Prices Caused by Subsidised Wind & Solar

    Meanwhile, back on Earth, a team from the Chicago School of Economics have just proved the bleeding obvious.

    Here’s Michael Shellenberger detailing what STT followers know all too well.

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