Friday, September 8, 2017

Renewable Energy Subsidies Cause Increased Electricity Prices

There is no free lunch, contrary to what some people believe. Renewable energy subsidies cause electricity prices to increase as coal and nuclear powered generating plants are decommissioned, other means must be developed to provide electricity when the wind doesn't blow and the sun doesn't shine.
A newly released U.S. Department of Energy report on electricity markets and reliability makes it clear that renewable energy subsidies are contributing significantly to the increasing cost—and the decreasing reliability—of the national electric grid. The Hill
The electrical grid has been designed to distribute electricity with stable generating sources providing for the base electrical load. With the intermittentancy associated with renewable sources, instability in the grid becomes an increasingly important issue for the grid operator to deal with. 

Thus it is highly likely that we will see increasing costs to the end users to stabilize the transmission grid. It was pointed out in an earlier post that transmission costs are a separate item on our electric bill that has already increased this year.

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