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America has some perfect examples of what not to do, if it wants to remain an industrial and manufacturing power-house, with a standard of living that much of the World can only envy.

South Australia has set the pace with spot prices that rocket in minutes from $70 per MWh to $2,000 to $4,000 and all the way to the regulated market price cap of $14,000 per MWh, every time wind power output collapses on a total and totally unpredictable basis.

And much of Europe is in the same boat: think Spain, Germany, Denmark and the UK.

From what’s coming out of the USA, Americans don’t seem that keen to follow the path set by countries facing social and economic disaster, thanks to their ludicrous attempts to run on sunshine and breezes.

Donn Dears LLC is among them.

Europe’s High Cost of Renewables

Power for USA

Donn Dears

19 July 2016

In its quest to cut CO2 emissions, Europe has promoted the adoption of wind and solar to replace fossil fuels.

This has resulted in a large increase in electricity rates for Europeans.

The first chart shows the change in electricity prices after Europe initiated its efforts to cut CO2 emissions.

The first chart shows the impact of adding wind and solar to the energy mix for all of Europe, while the second chart distinguishes the effect between countries.

It’s immediately evident that those countries that have invested most heavily in wind and solar have seen their electricity prices soar.

Specifically Denmark and Germany, followed by Italy, Ireland, Spain and Portugal.

Costs have gone up least, in countries that have continued to use coal, except for France, where nuclear is the primary source for electricity, and Norway where hydro is the primary source.

Poland, Rumania, Hungary and the Czech Republic continue to use coal to provide most of their electricity. For the most part, these and other countries, such as Croatia and Finland, have not invested heavily in wind and solar.

The message from Europe is clear, wind and solar significantly increase the cost of electricity.

The same message can be found within the United States.

States using natural gas or coal as their primary source of electricity have markedly lower electricity prices than California, the leading proponent of wind and solar for generating electricity.

Specifically, California’s electricity rate, at an average of 15.34 cents/kWh, is 50% higher than Kentucky, Arkansas, Utah, and Wyoming, which have a combined average rate of 10.25 cents/kWh, and rely on fossil fuels for generating electricity.

States like New York, Massachusetts, and New Jersey have residential electricity prices that are, on average, 50% or more higher than states that rely on natural gas and coal for electricity, but these higher prices are primarily due to taxes, including efforts to promote wind and solar and pay the carbon tax.

For example, “Up to 70% of New York’s retail electricity price per kWh goes toward Delivery, Taxes, and Regulations.” And, “Since 2008, the cost to produce electricity has stayed the same or been reduced while transmission costs and taxes have shot up dramatically.” Including, “New York’s participation in the Regional Greenhouse Gas Initiative, the Energy Efficiency Portfolio Standard, Renewable Portfolio Standard, and Systems Benefit Charge.”

In summary:

It’s clear that wind and solar in Europe has resulted in higher prices for electricity.

It’s also clear that states promoting wind and solar, such as California, and to some extent the states included in the regional greenhouse gas initiative, have also caused higher prices for electricity.

We can learn from Europe’s use of subsidies to promote wind and solar, where the subsidies have resulted in the high cost of electricity.

We have examples in the United States that confirm the lessons learned from Europe.

Wind and solar substantially increase the cost of electricity, which harms families and makes manufacturing more expensive.

Power for USA