Exclusive: Market trends now favor renewable energy as a cost-effective alternative to fossil fuels, but President Trump’s resistance to this good news is doing real damage in the fight against global warming, reports Jonathan Marshall.
By Jonathan Marshall
With petrochemical billionaires Charles and David Koch paying many of the GOP’s bills these days, it’s no wonder conservative policymakers are pushing hard to protect dirty fossil fuels against competition from clean, renewable energy. But entrepreneurial capitalists whom conservatives claim to worship are fighting back, slashing costs for wind and solar power to the point where few customers can refuse them.
A remarkable new study by Lazard, the venerable New York investment house, concludes that the unsubsidized cost of energy from new wind and solar plants now falls decisively below that of nuclear and coal plants, and even below that of efficient natural-gas-fired generation. The gap is widening each year as scale economies and improvements in turbine and photovoltaic technology drive cost reductions. Significantly, even cautious modelers at the U.S. Department of Energy concede these trends.
Even more disruptive is Lazard’s finding that “in some scenarios the full-lifecycle costs of building and operating renewables-based projects have dropped below the operating costs alone of conventional generation technologies such as coal or nuclear.” In other words, it’s often cheaper to shut down those older plants and replace them with new wind and solar projects.
Where local conditions especially favor renewable energy, the cost advantages of wind and solar have become enormous. Last spring, for example, Tucson Electric Power inked a 20-year deal to purchase enough solar energy to power more than 20,000 homes at a price of less than 3 cents per kilowatt-hour. (One kilowatt-hour is the amount of energy needed to light ten 100-watt bulbs for an hour.)
That’s just half the cost of new gas and coal generation and about a quarter of the cost of new nuclear power. Only the cheapest wind power can compare.
Trump Fights the Market
Members of the Trump…