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Brookings Study Calls Solar, Wind Power the Most Expensive Fossil Alternatives

turkeydance (1266624) writes A new study [PDF] from the Brookings Institution, a Washington think tank, argues that using solar and wind energy may be the most expensive alternatives to carbon-based electricity generation, even though they require no expenditures for fuel.....Specifically, this means nuclear power offers a savings of more than $400,000 worth of carbon emissions per megawatt of capacity. Solar saves only $69,000 and wind saves $107,000. An anonymous reader points out that the Rocky Mountain Institute finds the Brookings study flawed in several ways, and offers a rebuttal.

26 of 409 comments (clear)

  1. Funny money by oldhack · · Score: 5, Insightful

    "$400,000 worth of carbon emissions", it says. What, monopoly money?

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    1. Re:Funny money by ShanghaiBill · · Score: 4, Informative

      "$400,000 worth of carbon emissions", it says. What, monopoly money?

      There are carbon emission markets that put a real price on CO2 emissions. These are currently priced under $10 / tonne. But this study used a value of $50 / tonne, without any justification, other than making their conclusions look more impressive.

    2. Re:Funny money by mlts · · Score: 4, Insightful

      That $400,000 number is suspect. What conditions are what I wonder about.

      Don't forget regulation. I can go get some wood pallets behind S-Mart [1], rip them up and make a frame that props a solar panel roughly south, have the wires go to a $10 charge controller, a cast-off battery, and an el cheapo inverter fresh off the Chinese slowboat... and I have a little bit of electric for an outbuilding, for the total cost for well under a C-note, especially if the panel is a cast off or factory second. This isn't a reliable setup, but for a redneck solution to keep a shed lit at night, it is workable.

      There is no way in Hell one could ever approach anything nuclear related without billions of dollars in assets. Even a small reactor in the low megawatts will take tens to hundreds of millions of red tape fees, dealing with the anti-nuke lobby and the NIMBY people, then finding a contractor who will actually make a reactor head out of the correct materials and not pot metal, not to mention all the other costs with each step of getting the reactor up and running.

      Nuclear power is great scaling up, because it provides the most energy generation for the least amount of real estate. However, it takes no regulation other than basic electrical codes to get solar operational.

      [1]: Not Wal-Mart, they want $10 per pallet.

    3. Re:Funny money by ShanghaiBill · · Score: 3, Insightful

      Solar and wind kill the cash cow.

      Solar, yes. Wind, no. Solar PV does not benefit much from scale, so roof-top units make sense. But efficient windmills are big, and getting bigger. The most efficient windmills have a hub height of over 100 meters, and multi-megawatt generators. These are not backyard units. The future of wind energy is in offshore installations, and stratospheric wind. Only big corporations have the capital for that.

    4. Re:Funny money by ShanghaiBill · · Score: 4, Insightful

      Does Brookings think tank take money from oil and gas interests?

      The report is not really pro FF. It is more pro-nuke.

      All the slants against making the switch to renewable energy seem determined to to thwart it any way they possibly can

      They just show that current solar and wind projects don't make sense on a stand-alone basis. But they miss the point that these technologies are improving quickly. The cost of solar dropped 20% in the last couple years, and is expected to drop quite a bit more, due to both technological and manufacturing improvements. The cost of offshore wind is also falling, and we haven't even started to exploit stratospheric wind.

      But they have a valid point that current subsidies for wind and solar are probably not very smart. It would be better to put that money into scientific research, and development of better manufacturing techniques, rather than just subsidizing something that doesn't make sense.

    5. Re:Funny money by Penguinisto · · Score: 4, Informative

      The cost of solar dropped 20% in the last couple years, and is expected to drop quite a bit more, due to both technological and manufacturing improvements.

      FYI - the biggest reason for the price drop wasn't economies of scale, but because China flooded the unholy fuck out of the solar market, in a bid to dominate it since manufacturing solar panels isn't all that technically complex (at least not when compared to most other things).

      It used to cost around $3/Wp, and China's backing of SunPower, SunTech and similar ventures glutted the price down to ~$0.90/Wp; however, last I checked a couple of years ago (I used to work for SolarWorld) it still cost around $1.25/Wp to manufacture a 250W panel, and that's not counting margins slimmer than even a PC OEM enjoys.

      --
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    6. Re:Funny money by sumdumass · · Score: 5, Informative

      How do you "flood the market" without economy of scale?

      It is a process called dumping and China has been hit with tarrifs because of it by the EU. The US is investigating also.

      In case you didn't know, dumping is where you sell a product in a particular market below costs usually with the intent of harming the players already in that market.

      This is just protectionist propaganda from American companies interested in government enforced rent-seeking rather than competition.

      No, it is a claim that has been made, investigated, and punished in some areas in Europe over a year ago and recently in the US.

      Even the Chinese panels are way too expensive to make solar viable without subsidies, so they are hardly going to "kill solar" with low prices. Solar panels need to be much cheaper.

      The problem is their prices to not cover their costs. If a normal company did that, they would become bankrupt and fail into historical reference. When the Chinese companies do this, they are being supported by the Chinese government and as long as their government is willing to funnel money into them, they can sell cheaper than anyone can acquire the raw materials for- let alone produce and sell something from it.

    7. Re:Funny money by ozmanjusri · · Score: 5, Interesting

      PV doesn't make sense at any scale.

      I've just installed a 2.5 kW Solar system on my house in Western Australia, at a cost of just over $2500. Based on initial readings, output from the unit looks like being between 3,500 to 5,000 kWh/year. My electricity provider charges between 30 and 45c per kWh, and pays 8c per kWh for electricity fed back into the grid.

      So my payback time for the initial investment is somwhere between 1 and three years if I consume mostly self-generated power. The panels and inverter I've installed have a 25 year warranty,

      How does this not make sense?

      And I'm not alone in this, Australia faces an unprecedented oversupply of energy, with no new energy generation needed for 10 years. Coal power stations are sutting down, and even new gas power stations are being mothballed as they are unable to compete.

      http://www.aemo.com.au/Reports...

      --
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    8. Re: Funny money by caveqat101 · · Score: 3, Insightful

      Asides from waking up, you should have mentioned, the cost of backup generators. The sun don't shine everyday, the wind don't blow every day, the load varies every day. Every one needs cheap available power every day.

  2. And when you include end-of-life costs? by ReallyEvilCanine · · Score: 4, Insightful

    Decommissioning costs (including storage, disposal, and demolition) never seem to figure into these numbers.

    1. Re:And when you include end-of-life costs? by TWX · · Score: 4, Funny

      When the overspeed clutch fails they do...

      Video

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  3. Re:This probably ignores cost of decommissioning by dex22 · · Score: 3, Informative

    If you read the article and linked information, you'd know they included decommissioning costs, plus costs related to accidents and insurance costs. Also, many nuclear power stations have been fully decommissioned. A surprising number of them are now greenfield sites in the US.

  4. Re:Finally!! by TWX · · Score: 5, Interesting

    We're looking into Solar right now, and I'm considering everything from a leased system that only provides daytime power offset, to a full system with battery bank and generator capable of intentional islanding off-grid for those few times that the power goes out. Trouble is trying to size the thing, one estimate suggested we only get 12.5kW, but with three HVAC units and two hot water heaters, plus the air compressor and other things down the road like a welder I don't think that the ~50A from such a system would really be enough given that the property is sized for 200A service and I have an outbuilding to support. I can buy a propane-powered 20kW generator for about $4000, so I'm wondering if I'd be better off sizing solar to be similar.

    Even costing more than other non-fossil-fuel sources, solar appeals because it's something that I can do at home. I can't really do wind, there's probably not enough thermal gradient to do geothermal, there's no stream or river to do hydro, and obviously nuclear is out. That pretty much leaves me with solar.

    I'm disappointed that codes for new construction haven't started mandating the installation of solar. Integrated into the design of a house it could probably fit aestetically better than a retrofit, and the cost to purchase such a system when rolled into the 30 year loan would probably make it more feasible for most to have it. On top of that, wider adoption would serve to drive costs down for everyone else, including possible retrofits like mine.

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    Do not look into laser with remaining eye.
  5. Re:Oddly nobody factors in risk and after costs by reve_etrange · · Score: 5, Informative

    Similarly, the amount of radioactive material released by burning coal is rarely mentioned.

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  6. Re:Finally!! by mspohr · · Score: 4, Informative

    I'm installing solar this month.
    The ROI calculators show a first year 7% ROI (of course, this will increase as electricity prices increase).
    It's hard to find another investment which will give me 7% return on my investment and where the return will increase by 3-5% per year for the next 25 years.
    This is a no-brainer.

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  7. Re: This probably ignores cost of decommissioning by Anonymous Coward · · Score: 3, Informative

    Yes, they also factor in fuel disposal costs.

    It's on pg. 14 if you're interested.

  8. Cost of nuclear decommissioning? by ljw1004 · · Score: 3, Interesting

    This paper: assumes $0.2 - $0.3 billion to decommission a nuclear power plant (based on a 2013 report by the US Nuclear Regulatory Commission)

    UK: $9 billion decommissioning costs per plant, based on an estimate by the UK's Nuclear Decommissioning Authority.

    Japan: $1 billion per plant so far, but estimated $1.8 billion per plant for the remainder

    I suspect this paper gets its results by downplaying by an order of magnitude the decommissioning costs of nuclear power.

  9. Re:Finally!! by ShanghaiBill · · Score: 5, Interesting

    We're looking into Solar right now

    I looked into solar last year. In California, we have tiered pricing, where the first tier costs $0.10 per kwhr, the second tier $0.12, and if you go over that, the third tier is $0.30. I wanted to at least eliminate the top tier. But before I invested in solar, I decided to try to cut consumption as much as possible. I added insulation to the attic (saving gas in the winter, and electricity for A/C in the summer), installed an attic fan, and switched all our lighting to LEDs. LEDs are expensive at retail ($10 per bulb) but far cheaper on eBay ($2 per bulb). The result was that I was no longer using any top tier electricity, and the solar no longer made sense. I did all this for about 5% of what the solar would have cost.

  10. Re:Using old data by mdsolar · · Score: 3, Informative

    Exactly correct. Using correct number reversed the order. http://www.forbes.com/sites/am...

  11. This has been debunked already by royeb · · Score: 3, Informative

    The Rocky Mountain Institute had already debunked this story at http://www.corvalliscommunityp...

  12. The Brookings Institution? by jeff13 · · Score: 5, Insightful

    The Brookings Institution??? Why would anyone give a damn what some think tank, er, thinks?

    By definition, a think tank's job is to simply rationalize their clients opinion.

  13. Re:Finally!! by TWX · · Score: 5, Informative

    120V service is derived by adding a center-tapped-neutral to a 240V single-phase system. Residential power is calculated based on that 240V number. So, 240V at 200A is my max power capacity before tripping the main breaker.

    I have to look at both while-running max load and have to consider startup demand. Breakers for individual circuits are supposed to be sized for startup demand (though apparently there's a tiny bit of room for fudge here, with slower-acting breakers so that a peak draw at startup could theoretically exceed a breaker rating for a very short time without either tripping the breaker or being especially dangerous) but by and large, that's what I have to do. I can rule-of-thumb the breakers for the 240V devices to figure out approximate max startup demand if everything kicked on at the same time.

    If I add up the startup demand for the three HVAC units, the two hot water heaters, and probably 20A for all of the various residential 120V circuits for lighting and devices, I'm well over the 50A of a solar system, and I expect that with all of that running at the same time I'm probably over 50A there as well. That's the biggest concern, and I know that I've had all three HVAC units running at the same time before. The air compressor doesn't run very often, but it also draws 30A while it does.

    We're probably going to put a couple inches of foam insulation on the outside of the house and have it stuccoed, and we're going to change the windows. Unfortunately there are a lot of windows to change, and it'll be close to five figures to change them all.

    --
    Do not look into laser with remaining eye.
  14. Re:Not convinced. by Solandri · · Score: 3, Informative

    Per unit of power generated, wind and solar are much more dangerous than nuclear even if you factor in the meltdowns. What's going on is the same reason some people are afraid of flying. When a plane crashes it gets reported all over the world, with hours of coverage and video and pictures.. Meanwhile, most car crashes go unreported (did you know wind turbines killed more people in 2011 than Fukushima?). Thus creating the misperception that cars are safer, even though statistically planes are far safer.

  15. Re:Finally!! by timeOday · · Score: 4, Insightful
    The reason this study found a higher cost for solar was they accounted for intermittency - the basic problem is that even if solar were generating 50% everybody's power, you'd still need about the same amount of baseline power available - nuclear or fossil fuels - for when the sun isn't out.

    Early solar adopters aren't bearing this cost because the power company charges them same amount for power whether or not the sun is shining - it's not really an issue until solar is a bigger power source. Germany IS already there, leading the way with solar and wind, and has been paying outrageous prices for electricity at certain moments when there is a crunch - up to 400 times the normal rate! But as you can imagine this is a huge financial incentive to create new solutions.

    I question the study because the transition to solar will be gradual, and it's hard to say what more efficient means we might come up with to store power. If we had a smart grid that could communicate fluctuating electricity prices to devices, there might be a lot they could do.

  16. Re:I believe solar thermal does benefit from scale by Fencepost · · Score: 3, Insightful

    Straight conversion efficiency isn't the only factor that matters by a long shot, and might not even be the most important factor. Maximum charge cycles / lifespan strikes me as important. Cost of materials. Safety. Regulatory complications. A 10% loss in efficiency is probably worth it to go from 3,000 charge cycles to 10000.

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  17. Externalization by Dasher42 · · Score: 3, Informative

    Talk about a skewed, worthless study from Brookings. Garbage in, garbage out.

    As Amory Lovins ably pointed out, its data is old. It also does not consider the entire cost of production, usage and cleanup. Cleanup costs count too! Are West Virginia, Ohio, British Columbia, Alberta, the Niger River basin, or Ecuador's rainforests, or the Gulf of Mexico just not in Charles Frank's back yard? I guess not. Screw people for living there, then. Do not the geopolitical considerations of an aggressive military foreign policy required to keep the oil flowing not count too? Screw those GIs and the people who live where they're sent in oil wars, too. Exxon's got to make a buck.

    That's what externalization is. It means omitting key and pertinent parts of the picture and just sticking it to whomever is dealing with the consequences.

    Solar panels are rapidly getting more efficient and cheaper to make, and you can put them directly on site where they're needed so you don't have to lose electricity to resistance across a far-flung grid with its necessary redundancies and overproduction, which are required in the event that a powerstation needs a maintenance cycle.

    Someone's just keen to keep a bloody monopoly.