New renewable energy--wind, biomass, landfill gas,
digesters, hydro--now costs less than a new coal plant. Don't believe it? That is the finding of the Michigan Public
Service Commission that quietly released on February 15th its statutorily
required report to the Michigan legislature.
See the details at:
http://www.michigan.gov/documents/mpsc/implementation_PA295_renewable_energy2-15-2012_376924_7.pdf.
Looking at the actual prices bid to build new renewable
energy plants, the Michigan regulators found:
1. new wind plants from 2008-2011 on average cost 8.76 cents
per kilowatt-hour;
2. new biomass cost 9.89 cents per kilowatt-hour;
3. new landfill gas cost 9.81 cents per kilowatt-hour;
4. new digester power cost 12.2 cents per kilowatt-hour.
The average renewable energy cost was 9.19 cents per
kilowatt-hour for the entire 3 year period and would be even lower if only 2012
prices were included. By comparison, the
cost of new coal-fired plant for a life cycle of 40 years is 13.3 cents per
kilowatt-hour.
And where are renewable energy prices headed? The Michigan PSC states "...that the
average levelized costs of the [renewable energy] contract continue to
decline" and that "contract prices have been much lower than
expected." Indeed, the renewable
energy prices are lower in 2012 than in
2011, 2010, 2009, or 2008.
Consequently, the prices expressed in the report overstate the price of
renewable energy in 2012.
Gas is certainly remaking the energy marketplace, but it is
not alone in doing so. Renewable energy
and its sharp price drop is an equally profound change, making both gas and
renewable energy the dominant fuel sources for the next 20 years.
http://johnhanger.blogspot.com/2012/02/new-coal-plants-now-more-expensive-than.html
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