Matador
Well-known member
There seems to be an unstated assumption than reducing fossil fuel sources means more expensive energy, and I'm not sure that's been conclusively proven yet.
There was a great breakdown published on the LCOE (levelised cost of energy) published by the EIA which tries to break this down (somewhat):
https://www.eia.gov/outlooks/aeo/pdf/electricity_generation.pdf
In short, over the next 20 years, if you include all of the parameters that factor into LCOE (including financing, subsidies, operating and fuel costs, decomissioning costs, etc), then wind and solar is already cost equivalent to CC gas turbines, and roughly half the cost of new nuclear plants (for nuclear plant, they consider both light water reactors as well as cost estimates for small modular reactors). Now detractors argue that manufacturing costs for renewables aren't accounted for (they mostly are, including capital manufacturing costs as well as shipping costs) insofar as they don't account for environmental effects of heavy metals or other waste products of manufacturing (which is true)...but on the flip side, they don't include the costs of long-term nuclear waste storage and maintenance either. Costs are averaged amongst 25 different power regions in the US with a 30 year plant horizon. Costs of dealing with climate change (building sea walls, moving infrastructure away from flooding, moving agriculture to new areas, etc) aren't included with any of the fossil fuel solutions as well.
So for a plant built today for service in 2027, the average cost (in dollars per megawatt-hour) for a combined cycle gas plant is $37.05, and for onshore wind is $37.80 and for standalone solar (include 4 hours of battery capacity) is $33.46. What is interesting is that wind and solar have increased capital costs for transmission integration (getting the power on the grid), however those costs are quickly overwhelmed by the fuel costs of fossil fuel plants over time.
There was a great breakdown published on the LCOE (levelised cost of energy) published by the EIA which tries to break this down (somewhat):
https://www.eia.gov/outlooks/aeo/pdf/electricity_generation.pdf
In short, over the next 20 years, if you include all of the parameters that factor into LCOE (including financing, subsidies, operating and fuel costs, decomissioning costs, etc), then wind and solar is already cost equivalent to CC gas turbines, and roughly half the cost of new nuclear plants (for nuclear plant, they consider both light water reactors as well as cost estimates for small modular reactors). Now detractors argue that manufacturing costs for renewables aren't accounted for (they mostly are, including capital manufacturing costs as well as shipping costs) insofar as they don't account for environmental effects of heavy metals or other waste products of manufacturing (which is true)...but on the flip side, they don't include the costs of long-term nuclear waste storage and maintenance either. Costs are averaged amongst 25 different power regions in the US with a 30 year plant horizon. Costs of dealing with climate change (building sea walls, moving infrastructure away from flooding, moving agriculture to new areas, etc) aren't included with any of the fossil fuel solutions as well.
So for a plant built today for service in 2027, the average cost (in dollars per megawatt-hour) for a combined cycle gas plant is $37.05, and for onshore wind is $37.80 and for standalone solar (include 4 hours of battery capacity) is $33.46. What is interesting is that wind and solar have increased capital costs for transmission integration (getting the power on the grid), however those costs are quickly overwhelmed by the fuel costs of fossil fuel plants over time.