Originally Posted By: OVERKILL
Originally Posted By: SHOZ
Originally Posted By: OVERKILL
Originally Posted By: SHOZ
That is not the case in Illinois. They have to sell into a market of around $0.04 a kWh wholesale.
What are the (non-subsidized) costs for the other generators? As we discussed, your generating buy/sell market operates quite differently from ours, so it would be nice to know the actual costs (not market rates) in the c/KWh format to properly compare them. The initial cost, low output and 30% efficiency are big strikes against wind and solar, even though they are getting cheaper to install.
There is no direct subsidy but rather income tax credits. My coop has been buying power at $0.037 per kWh for the last three years. Natural gas is the cheap power that sets the low rates. That does not get any direct subsidy either.
Yes, as we already discussed, NG is probably the cheapest generator at this point. Your co-op however sounds like it is buying power at a cost lower than it takes to generate it, what is the "regular" rate?
Also, it looks like your providers buy and sell REC's (Renewable Energy Credits):
https://www.ipa-energyrfp.com/download/P...02015-04-22.pdf
And a read-up on how that system works is here:
https://www.ipa-energyrfp.com/download/9...%209-4-2015.pdf
It is quite the interesting system and definitely qualifies as an incentive-driven system with credits issued in "blocks" with a bid price per REC per block.
Ameren is not my power suppler. Mine is Eastern Illinois Power Coop. Ameren delivers the power but the coop buys it's power from
http://www.ppi.coop/. Ameren does sell retail power and they also produce power but they are separate entities. Exelon owns the nuke plants and sells the power on the wholesale market.
Ameren and other providers do have to buy credits as they by law have to provide a certain percentage of renewable power and if they do not generate with renewables then they have to buy credits. Both Exelon and Ameren are also in the business of wind and solar.
You do understand what an income tax credit is right?