The Fraser Institute just reported some startling data regarding the real costs of electricity produced from solar and wind facilities, compared to other energy sources. Here are the money paragraphs (emphasis added):
Often, when proponents claim that wind and solar sources are cheaper than fossil fuels, they ignore [backup energy] costs. A recent study published in Energy, a peer-reviewed energy and engineering journal, found that—after accounting for backup, energy storage and associated indirect costs—solar power costs skyrocket from US$36 per megawatt hour (MWh) to as high as US$1,548 and wind generation costs increase from US$40 to up to US$504 per MWh.
Which is why when governments phase out fossil fuels to expand the role of renewable sources in the electricity grid, electricity become more expensive. In fact, a study by University of Chicago economists showed that between 1990 and 2015, U.S. states that mandated minimum renewable power sources experienced significant electricity price increases after accounting for backup infrastructure and other costs. Specifically, in those states electricity prices increased by an average of 11 per cent, costing consumers an additional $30 billion annually. The study also found that electricity prices grew more expensive over time, and by the twelfth year, electricity prices were 17 per cent higher (on average).
None of this is a surprise to anyone paying attention to the facts of what’s happened in Germany, for example, but the renewables industry and its promoters are fond of citing levelized costs analyses that don’t account for the myriad problems of intermittency when it comes to solar and wind. The two studies cited above do account for these costs and the results put an end to any suggestion green energy is affordable, let alone even close to competitive.
Hellbound and Down 