Originally Posted By: OVERKILL
Originally Posted By: Shannow
http://thehill.com/blogs/pundits-blog/en...0Qml50.linkedin
Quote:
For starters, the EIA says the plan will mean “significantly higher” prices for residential and commercial electricity. They attribute this to “higher transmission and distribution costs” coming at a time when electricity consumption will also grow slightly (in 2015-2040.)
Interestingly, the EIA projects that these higher electricity prices will actually reduce demand 2% by 2030. Why? Because “compliance actions and higher prices” will force cash-strapped consumers to adopt their own austerity measures.
A key part of the CPP is the dismantling of coal-fired power in the U.S. As the EIA sees it, “Coal’s share of total electricity generation, which was 50% in 2005 and 33% in 2015, falls to 21% in 2030 and to 18% in 2040.” Coal power plants currently anchor America’s base-load electricity generation, so it’s understandable that their elimination would drive up prices. But is such a move justified?
The EIA projects that “renewable energy” (solar and wind) will play a “significant role in meeting electricity demand growth throughout most of the country.” It’s a bold gamble, since the EIA believes that renewables will account for 27% of total U.S. generation by 2040. But EIA data shows wind and solar power supplying only 5.6% of U.S. electricity generation in 2015. So, the jump to 27% will require significant investments.
What’s instructive is EIA data on Germany, where residential retail electric prices have risen, and are expected to keep rising, due to higher taxes and fees for renewable power. Overall, Germany’s foray into green energy has driven the average residential electricity price to 35 cents/kWh, almost three times the U.S. average of 13 cents/kWh. Along with Denmark, Germany has some of the highest residential electricity prices in Europe.
And now imagine charging your electric vehicle at those rates
My inlaws have beyond broken even in just a few years on solar because they're paying 50c/kWh. I'm not seeing how it's any different anyplace else. People can adapt the technology to best minimize their costs.
The grid instability issue is another story though. Even if they idle sending power back to the grid, and higher demand charges to account for arbitrage and plant physics, so long as there's a 60Hz signal and dropping solar costs, more should be able to take advantage.
Simplified current limit in power electronics makes the solar side an easier play I think, in distributed generation.
