If renewables are so cheap, why have electricity prices doubled?

The introduction of renewable energy sources has increased electricity prices.

Funny thing about renewable energy sources such as wind and solar is that while their proponents keeping telling us that the cost of generating electricity with turbine and photovoltaic cells keeps dropping, electricity rates keep rising.

It’s so odd, in fact, you might think that renewable proponents were trying to mislead us.

Nah. That couldn’t be true, could it?

Here’s the thing, for most of the 20th Century, the price we pay for electricity had been dropping. From 1902 to 2000, electricity prices fell by a whopping 97 per cent.

It’s the primary reason that electrical devices became so ubiquitous. Cheap energy allowed us to do more and more things with electricity. Without cheap electricity, we would not have seen nearly as much growth in Gross Domestic Product as we have witnessed in the past 100 years.

That all changed beginning at the turn of the 21st Century. Electricity prices have begun to rise and are now seeing double digit increases.


Renewable energy.

Germany is a prime example of wrong headed thinking.

Germany used to have relatively inexpensive electricity. In 2000, electricity cost 13 cents per kilowatt hour (k/WH).

Then the country embarked on its great energy transition – the so-called Energiewende.

The transition involved the wholesale introduction of massive amounts of renewables and the mothballing of nuclear power plants.

By March of last year, full 20 per cent all electricity came from new renewables.

Funny thing, though, instead of all that “free” wind and solar power reducing electrical prices as promised, electricity prices more than doubled.

Germany now has the Europe’s highest electrical prices and is looking at building – wait for it – more coal plants.

The same things has happened in California, the other darling child of the renewable crowd. Electricity prices are now 60 per cent higher than the average price in the United States.

There is no mystery as to why this is. Any serious analysis of renewables finds the fatal flaw in a matter of minutes.

As I noted in yesterday post, wind turbine and solar panel owners are not producers of energy, they are collectors of energy.

Every wind turbine or solar farm harvests what nature provides. As such, the generation of electricity is wholly dependent on what nature provides. If it isn’t blowing hard enough, no electricity is produced. If it’s not sunny, no electricity is produced.

Renewable energy is not dispatchable.

The wind turbine or solar farm cannot increase production to meet demand.

That’s what increases the costs to consumers. Every single watt of renewable energy has to be backed up by a dispatchable source – coal, natural gas or nuclear.

Little wonder that Germany is now abandoning subsidies for renewables and has embarked on rebuilding its electrical infrastructure with coal fired plants.

Renewables are a dead end. They cannot support our civilization at our current standard of living.

If the goal is to reduce CO2 levels, the only sane course of action if to build more nuclear plants.

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