ALEC attacking renewable energy standards nationwide

The American Legislative Exchange Council (ALEC) is at it again, trying to roll back state renewable energy standards nationwide.  The argument behind their model bill, entitled the Electricity Freedom Act, is that renewable energy is simply too expensive.  The Skeptical Science blog offers a good short debunking of this claim, based on the cost of electricity in states with aggressive renewable energy goals, and how those costs have changed over the last decade.  And this is before any social cost of carbon or other more traditional pollutants is incorporated into the price of fossil fuel based electricity.

US States with renewable portfolio standards or binding goals.

Their summary:

  • States with a larger proportion of renewable electricity generation do not have detectably higher electric rates.
  • Deploying renewable energy sources has not caused electricity prices to increase in those states any faster than in states which continue to rely on fossil fuels.
  • Although renewable sources receive larger direct government subsidies per unit of electricity generation, fossil fuels receive larger net subsidies, and have received far higher total historical subsidies.
  • When including indirect subsidies such as the social cost of carbon via climate change, fossil fuels are far more heavily subsidized than renewable energy.
  • Therefore, transitioning to renewable energy sources, including with renewable electricity standards, has not caused significant electricity rate increases, and overall will likely save money as compared to continuing to rely on fossil fuels, particularly expensive coal.

But really, go read the entire post for more detail.

Ripe for Retirement: The Case for Closing America’s Costliest Coal Plants

Ripe-for-Retirement Generating Capacity Is Concentrated in Eastern States
UCS identified up to 353 coal-fired generators nationwide that are uneconomic compared with cleaner alternatives and are therefore ripe for retirement. These units are in addition to 288 coal generators that utilities have already announced will be retired. Under the high estimate, there are 19 states with more than 1,000 MW of ripe-for-retirement coal-fired generating capacity, all in the eastern half of the United States.

The Union of Concerned Scientists has gone through the catalog of America’s coal plants, and found hundreds of mostly small, old, polluting, inefficient generating units that just aren’t worth operating any more, even on a purely economic basis. They looked at several different sets of assumptions, including different natural gas prices going forward, a price on carbon, whether or not the competing natural gas fired generation would need to built new, or whether it existed already with its capital costs paid off, and whether or not the production tax credit for wind ends up being renewed. In all of the scenarios considered, they found substantial coal fired generation that should be shut down on purely economic grounds, above and beyond the 288 generating units that are already slated for retirement in the next few years. They also found that some companies — especially those in traditionally regulated monopoly utility markets in the Southeast — are particularly reluctant to retire uneconomic plants, and suggest this may be because they can effectively pass on their costs to ratepayers, who remain none the wiser.