Solar and wind power could be cost-competitive — without federal subsidies — with conventional power sources in the United States if new renewable energy development is focused around highly productive locations, according to a new study from the National Renewable Energy Laboratory (NREL).
As is often the case, this assumes fossil fuels (e.g., natural gas) retain their huge subsidies in the form of externalities, which common citizens (and disproportionately the poor) pay through illness, early death, healthcare bills, higher health insurance premiums, disasters relief, and so on.
The new report, titled Beyond Renewable Portfolio Standards: An Assessment of Regional Supply and Demand Conditions Affecting the Future of Renewable Energy in the West, makes the case for renewables by directly comparing the cost of unsubsidized renewable energy generation from the most productive renewable energy resource areas of the US West with the cost of electricity from a new natural gas-fired generator built near the customers it serves. The figures for “costs” include transmission and integration costs.
“The electric generation portfolio of the future could be both cost effective and diverse,” stated NREL Senior Analyst David Hurlbut, also the lead author of the new report.
If renewables and natural gas cost about the same per kilowatt-hour delivered, then value to customers becomes a matter of finding the right mix.
Renewable energy development, to date, has mostly been in response to state mandates. What this study does is look at where the most cost-effective yet untapped resources are likely to be when the last of these mandates culminates in 2025, and what it might cost to connect them to the best-matched population centers.
Image Credit: Wind Energy via Flickr CC
The new report incorporates previous research that the lab performed for the Western Governors’ Association — work that identified the areas throughout the West where renewable energy development would be most effective, while having a minimal effect on wildlife habitat.
Some of the key findings from the new report:
Something to keep in mind — the report notes that future energy demands will be highly influenced by a variety of factors which are hard to predict far into the future, such as: changes in the price/supply of natural gas; consumer beliefs; technological changes; improvements in energy efficiency; and government policies/regulations. It’s important to note that the study’s supply forecasts are based solely upon empirical trends and recent evaluations of resource quality.
First published at Cleantechnica. Reproduced with permission.
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