Do Renewables Make for Cheaper Electricity?

 The debate about the impact of renewable energy on electric service prices remains contentious. The author argues that there is insufficient data to definitively prove a correlation between renewable energy adoption and electricity prices, suggesting that many influencing factors create noise in any analysis. The discussion is prompted by a viewpoint expressed by Greg Brophy, which the author critiques as potentially harmful to energy policy.

1. Critique of "All of the Above" Strategy:

• The author believes that the "all of the above" energy strategy could lead to overdevelopment in renewables due to tax incentives and subsidies, ultimately creating environmental and social costs.

2. Graphs and their Limitations:

• Several graphs presented in the article show the relationship between renewable energy adoption and electricity prices but are filled with data scatter and inconsistencies. For example, European nations exhibit varied energy generation methods, complicating the analyses.

• Claims of no correlation between renewable energy levels and electric rates are supported by some graphs but lack clear evidence and context.

3. Natural Gas and Coal:

• Natural gas is often seen as a cheaper option compared to coal, yet the increased reliance on gas for balancing renewables raises questions about costs. The author points out that while gas may appear cheaper, it often leads to inefficient operational practices, particularly with single-cycle plants.

4. South Dakota Example:

• South Dakota has a mix of wind and hydroelectric power, with only one coal plant. The electricity produced often feeds into a larger grid, making local price impacts unclear.

• Local electric cooperatives strive to maintain low rates, but market changes threaten this tradition.

5. Renewables Raising Prices:

• The author emphasizes that simplistic analyses of pricing against renewable energy presence do not yield conclusive results.

• The increasing ramping requirements of coal plants to accommodate renewable energy output lead to increased operational costs and reduced efficiency.

6. Long-term Predictions:

• The aspiration to eliminate coal and natural gas in favor of renewables and batteries could lead to even higher prices, as batteries are not energy sources but rather energy consumers.

The integration of renewable energy into existing power grids complicates price structures and poses challenges to operational efficiency. The author contends that while renewables are seen as beneficial, their relationship to electric service pricing is multifaceted and not easily quantifiable. There’s a critical need for a more detailed examination of how energy policy changes impact rates and efficiency, especially as reliance on renewables continues to evolve. Further research and careful considerations must be made rather than adhering to overly simplistic conclusions.

https://wattsupwiththat.com/2026/01/27/do-renewables-make-for-cheaper-electricity/