On the Economics of Wind and Solar Power

Originally published at The Beam | On the economics of wind and solar power — by Lion Hirth

“Many hope that wind and solar power will eventually become economically competitive on large scale, leading the way to a global low-carbon economy. Are these hopes justified?”

November’s COP22 climate summit of Marrakech gave climate policy fresh tailwind, after the blow of Donald Trump’s election. Even without a strong global treaty, national climate policies are multiplying — at least a certain type of policies. While the policy that economists often recommend — putting a price on greenhouse gas emissions — remains patchy, as a recent World Bank report shows, subsidies for renewable energy are booming: no fewer than 145 countries support renewables today. Germany’s Energiewende is a prominent, but not the only example: Obama’s Clean Power Plan features renewables as a centerpiece of climate policy, India’s National Solar Mission includes a 100 GW solar power target. In addition China is said to be considering a 200 GW target, and Morocco has announced the building of the largest solar power facility on the planet. Nearly half of all newly added electricity generation capacity was based on renewables. In ten countries, wind and sun deliver more than 10% of electricity consumed. These includes Denmark (43%), Portugal (24%) and Spain (23%).

Many hope that wind and solar power will eventually become economically competitive on large scale, leading the way to a global low-carbon economy. Are these hopes justified?

On the cost side, the economics of renewables look impressive. The costs of wind power have dropped significantly. On average, wind now generates electricity at $70–80 per Megawatt-hour (MWh) globally, as reported by the two international think tanks IRENA and IEA. Ten years ago, a roof-top solar array for a single family home cost more than $50,000 — today it sells for less than $14,000. (America’s LBNL and Germany’s Fraunhofer ISE provide more data.) Germany, which receives less solar radiation than southern Canada, now generates solar power at $90 per MWh. The United Arab Emirates have tendered a solar power station for $58 per MWh and recent auctions in Chile, Peru and South Africa have resulted in even lower prices.

On the economics of wind and solar power
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In some countries, wind and solar power are now cost-competitive with coal- and natural gas-fired power plants, even when carbon emissions are not priced. However, cost structures are very country-specific, and cost-competitiveness is not universal. Renewables tend to be cheaper where it is windy or sunny, where investors have access to low-cost finance, where fossil fuels are pricey, and where emissions are priced. In many places, however, coal-fired power plants remain the cheapest option for producing electricity, driving the renaissance of coal. Still, for renewables to have caught up with fossil plants in cost terms represents a huge success for wind and solar power.

Costs are, however, only one side of the competitiveness equation. The other is value. Merely comparing electricity generation costs between different plant types is misleading, as it ignores the fact that the economic value of electricity from different power stations is not the same. This is because on wholesale markets the price of electricity fluctuates from hour to hour (or even minute to minute). Some power plants produce electricity disproportionately at times of high prices (so called “peaking” plants), while others produce constantly at low prices (“base load” plants). This little detail has striking consequences for the economics of wind and solar power. Paul Joskow and Michael Grubb observed this a while ago.

On the value side, the outlook for renewables is…

Read the entire article here.

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Power to the People! Renewable Energy in the U.S.A.

by John Brian Shannon – Originally posted at JBSNews.com

U.S. renewable energy has made impressive strides in recent years

“According to a new report from the U.S. Department of Energy, solar power employs more people than coal, oil and gas combined.

Last year, solar power accounted for 43 percent of the Electric Power Generation sector’s workforce, while fossil fuels combined employed 22 percent. The statistic will be welcomed with open arms by those trying to refute Donald Trump’s assertion that renewable energy projects are bad news for the U.S. economy.

Around 374,000 people were employed in solar energy, according to the report while generation through fossil fuels had a workforce of just over 187,000. The solar boom can be attributed to construction work associated with expanding generation capacity.

The report states that the employment gap is actually growing with net coal generation decreasing 53 percent over the last 10 years. During the same period of time, electricity generation through gas expanded 33 percent while solar went up by an impressive 5,000 percent.”Niall McCarthy | Statista

Renewable Energy | Solar power now employs more people in the U.S. than coal, oil and gas combined according to a new U.S. Department of Energy report.
U.S. employment by energy generation source in 2016. Find more statistics at Statista

Solar Power and Wind Power combine to provide 475,545 U.S. jobs — while Nuclear Power and Fossil Fuel Power generation combine to provide only 255,293 U.S. jobs — but in recent years the Fossil Fuel industry gets 4 times more subsidy than Renewable Energy

Renewable Energy = Clean Air and Twice as many Jobs on 1/4 the Subsidy!

Here is a look at historical U.S. federal subsidies paid from 1918 to 2009 for various energy producers.

Renewable Energy vs. Non-renewable energy subsidies in the U.S.A.
Cumulative U.S. Federal Energy Subsidies from 1918 – 2009 | What Would Jefferson Do?

What Do Americans Think About Fossil Fuel vs. Renewable Energy?

Solar power and wind power (alone!) employ almost twice as many Americans as all nuclear and all fossil fuel power plants combined, but renewable energy gets only one-quarter of the subsidies in from 2010 onward.

Which might be a factor in the minds of Americans who look forward to renewable energy meeting their future energy demand.

Renewable Energy | Fossil Fuels are Falling Out of Favor in the U.S.
Percentage of U.S. adults who favor/oppose expanding these energy sources. Find more statistics at Statista

Renewable Energy Continues to Grow in the U.S.

This renewable energy statistic represents the cumulative non-hydropower renewable capacity in the United States from 2008 to 2016, by technology.
Cumulative non-hydropower renewable capacity growth in the U.S. from 2008 to 2016. Find more statistics at Statista

Despite the low subsidy amounts paid to renewable energy in the United States, non-hydropower energy continues on its growth trajectory and it’s now cheaper to build new solar capacity, than to build new coal capacity.

New Solar Now Cheaper Than New Coal

Costs for new solar power plants continue to plummet (without subsidy) vs. new coal power plants (with a small subsidy) is reflected in the Levelized Cost of Electricity (LCOE) per Kilowatt Hour price.

“As early as 2018, solar could be economically viable to power big cities. By 2040 over half of all electricity may be generated in the same place it’s used. Centralised, coal-fired power is over.”Solar has won. Even if coal were free to burn, power stations couldn’t compete — The Guardian

Billions of Gallons of Water Used Monthly by Conventional Energy

Renewable Energy vs. non-renewable energy by water consumption.
Renewable Energy vs. Non-renewable Energy by water consumption. Image courtesy of climaterealityproject.org

Many coal-fired power plants and several nuclear power plants produce well over 1000MW (1 GW) of electricity and it is easy to extrapolate their water usage.

For instance, a 1.6 GigaWatt(GW) coal-fired power plant (for the purposes of this discussion there’s a 1.6GW coal-fired power plant in Texas) uses 1,760,000 gallons of water per hour, while an equivalent-sized nuclear power plant uses 1,280,000 gallons of water per hour.

Meanwhile, a natural-gas-fired power plant producing the same 1.6GW of electricity would consume 480,000 gallons per hour, while a 1.6GW solar or wind power would consume zero gallons per hour.

Of course hydro-power does not consume any water during its decades of reliable power production, water merely falls through turbines and back into the river a bit further downstream — although during the construction of the dam, spillways, and hydro-electric turbine rooms, millions of gallons of water are used to make the concrete.

The Future of Energy in the United States

Renewable generation capacity expected to account for most 2016 capacity additions in the U.S.

The chart below shows just how much wind power in the United States has grown in recent years.

Renewable Energy | U.S. Wind Power Generation Capacity Surpasses Hydropower Capacity in 2016. Image courtesy of EIA
U.S. Wind Power Capacity Surpasses Hydropower Capacity in 2016. Image courtesy of EIA

The chart below shows the expected growth of solar photovoltaic power in the United States (does not include solar thermal)

Renewable Energy | U.S. Solar Power Installations Photovoltaic 2010 to 2020. Image courtesy of GreenTech Media and Solar Energy Industry Association.
U.S. Solar PV Power Installations 2010 to 2020. Image courtesy of GreenTech Media and Solar Energy Industry Association.

The chart below displays total utility-scale capacity additions from 2010 to 2016. For the third consecutive year, more than half of the capacity additions are renewable technologies, especially wind and solar.

A Majority of Energy Capacity Additions in 2016 Will Be Renewable Energy in the United States -- EIA
A Majority of U.S. Energy Capacity Additions in 2016 will be Renewables. — EIA

From 2013 through 2040, U.S. electricity demand is expected to grow approximately 1 trillion kiloWatt hours(kWh) with natural gas and renewable energy showing steady growth, while coal-fired power generation and nuclear power show slight declines according to the U.S. Energy Information Administration.

Renewable Energy vs. Non-renewable energy demand. Image courtesy of the U.S. EIA
Renewable Energy vs. Non-renewable energy demand. Image courtesy of the U.S. EIA

If the United States converted their existing coal-fired power generation to natural gas by 2020, the U.S. could easily meet every international and domestic clean air target until 2050 as coal burns 10,000 times ‘dirtier’ (anthracite, or black coal) to 1,000,000 times ‘dirtier’ (lignite, or brown coal) when compared to natural gas.

Full cost accounting for the life cycle of coal — Harvard Medicine

It goes without saying that if the United States replaced coal-fired power generation with renewable energy, it would surpass every U.S. international and domestic clean air target, lower U.S. heathcare and infrastructure spending by billions of dollars annually, save the U.S. billions of gallons of fresh water per month, provide millions of good-paying jobs for American workers — and prove the United States is still an exceptional power in the 21st-century. Not bad!

President Carter Launches 1.3 MW Solar Project in Plains, Georgia

Former President of the United States Jimmy Carter leases a 10-acre site to SolAmerica Energy for the next 25 years to harvest the power of the Sun 

SolAmerica 1.3 MW solar array at Carter Farms with Plains, GA in background. Image courtesy of SolAmerica
SolAmerica 1.3 MW solar array at Carter Farms, with Plains, GA in background. Image courtesy of SolAmerica Energy.

Atlanta-based SolAmerica Energy, a leading solar, development and construction firm, launches a 1.3MW solar array on President Carter’s Farm in Plains, Georgia.

Former President Carter leased a 10-acre site in his hometown to SolAmerica for development of the 1.3 MW solar project, which will provide over 50% of the power needs of the City of Plains.

Carter, an early advocate and leader of the renewable energy movement during his tenure in the White House, commented;

“Rosalynn and I are very pleased to be part of SolAmerica’s exciting solar project in Plains. Distributed, clean energy generation is critical to meeting growing energy needs around the world while fighting the effects of climate change. I am encouraged by the tremendous progress that solar and other clean energy solutions have made in recent years and expect those trends to continue.”

President Carter created the Department of Energy and the Federal Energy Regulatory Commission (FERC), and signed the Public Utility Regulatory Act (PURPA), which became catalysts for the advancement of renewable energy in the U.S.

Carter was also the first president to put solar panels on the White House.

SolAmerica executive vice president George Mori added,

“We are honored to work with President Carter and his family on this project in Plains, as President Carter’s leadership on  renewable energy matters is well known and much appreciated in our industry.

Through a 25-year Power Purchase Agreement with Georgia Power, this project will help expand the growth of renewable energy assets in Georgia, while contributing to the overall economy of  Plains.”

“There remains a great deal of untapped potential in renewable energy in Georgia and elsewhere in the U.S. We believe distributed solar projects like the Plains project will play a big role in fueling the energy needs of generations to come.”

SolAmerica 1.3 MW solar array at Carter Farms in Plains, GA. Image courtesy of SolAmerica.
SolAmerica 1.3 MW solar array at Carter Farms in Plains, GA. This system will power over half the City of Plains, Georgia, with silent, clean and affordable energy. Image courtesy of SolAmerica.

SolAmerica developed, engineered and installed the single-axis tracker solar array on Carter’s property. Over the next 25 years, the system is projected to generate over 55 million kilowatt hours of clean energy in Plains.

To contact SolAmerica to find out how they can help your farm, commercial, or residential property to save money on electricity costs and help you to become more energy independent, visit: SolAmericaenergy.com

Solar Power Electricity now Cheaper than Fossil Fuel

Electricity Produced by Solar Power beats Electricity Produced by Fossil Fuel – on per MWh price!

Meeting electrical grid demand via solar power at a lower per MWh cost is now possible, when compared to meeting total demand from conventional electricity producers such as fossil fuel, nuclear or even hydro-electric power.

The WEF report notes that “utility-scale, thin-film solar PV plants produce cheaper power, on average, than new natural gas plants.”

A record low electricity price was achieved in Chile in August 2016. At $29.10 per MWh, solar electricity cost about half the price offered by a local coal competitor.

The cost of production of electricity through the utilization of solar energy is outpacing other alternatives, as the investment in solar panels is turning out to be comparatively cheaper than a comparable investment in coal, natural gas or other options, according to a new World Economic Forum report… Continue reading Solar Power Electricity now Cheaper than Fossil Fuel

Power the World with 100 percent Renewable Energy

Excerpt reposted from: How to Save $23 Trillion Per Year: 100% Renewable Energy for the World

by Jeff Masters | January 02, 2017

Here’s a 2017 New Year’s resolution I’d like to see the nations of the world adopt: an immediate international effort to invest in a world where 100% of our electricity will be generated by wind, water, and solar power by 2050.

Such an effort is technically and economically feasible, and has been championed by Stanford professor Mark Jacobson since 2009.

His latest research on the subject was laid out in a series of talks last month in San Francisco at the annual meeting of The American Geophysical Union—the world’s largest conference on climate change.

100 percent Renewable energy - Wind turbines in Scotland produced 106% of Scotland's power over the holiday season 2016.
Jeff Masters proposes an international effort to power the entire world by 2050 with 100 percent renewable energy, via wind, water, and solar power exclusively. Over the 2016 holiday season, wind turbines in Scotland met 106 percent of Scotland’s electricity demand. Image courtesy The National.scot

During his talks, Dr. Jacobson outlined a plan to power 139 nations of the world for all purposes—including electricity, transportation, heating/cooling, industry, and agriculture/forestry/fishing—using a mix of approximately 37% wind, 58% solar, 4% hydropower, and 1% geothermal, wave, and tidal power.

His road map to a 100 percent renewable energy future uses existing generator technologies, along with existing electrical transportation, heating/cooling, and industrial devices and appliances.

He argued that his plan… [click here to read the full article]

Renewable Energy dena Start Up Energy Transition Award - Banner_Startup_Energy_700x116px