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Renewable Energy

Policies that require utilities to obtain energy from renewable sources, but promise to hold the line on consumer rates, require careful scrutiny. The numbers just do not add up. 

These proposals typically do not take into account the fact that renewable sources are not, by nature, a reliable source of power. Renewable energy sources must be backed up by conventional generation such as coal, natural gas, nuclear and hydro-electric dams, forcing our members to pay twice for energy infastructure, whether it is used or not.  

Wind Energy Still No Bargain

Renewable energy sources require duplication of facilities, as all the power they produce must be backed up with conventional generation. When the wind is blowing (25-30% of the time), the conventional power generating plant and transmission lines are sitting idle. When the wind is not blowing—or is blowing too hard—the wind turbines and transmission are idle. The duplicate facilities typically are gas turbines which require expensive fuel storage facilities and are subject to volatile fuel prices. Because coal plants cannot be adjusted rapidly to accommodate varying winf energy, some utilities are closing economically viable coal plants ans replacing them with gas, resulting in "stranded" costs that have to be paid by ratepayers.

Wind energy production also results in significant operating inefficiencies. To accommodate abrupt changes in renewable generations conventional plants must be kept spinning and expensive energy must sometime be purchased on the open market. When the wind blows at times of low power demand, baseload generators designed for full-time operation must be banked down. 

Despite recent claims that wind energy is now "less expensive" than coal or gas-fired generation, here is a formula to determine the true cost of wind energy:

Add:
the cost of redundant conventional generating plant,
the cost of redundant transmission lines,
the cost of wind turbines,
the cost of operating inefficiencies 

Subtract:
the cost of fuel saved when wind turbines are operating and
government subsidies

= Total Cost of Wind Energy 

 



 

 

Escalating Costs of Electricity Due to Governmental Mandates

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