Hirth predicted that the economic value of wind would decline 40% once it reached 30% of electricity, and that the value of solar would drop by 50% when it reached 15% of electricity.EP
In 2017, the share of electricity coming from wind and solar was 53 percent in Denmark, 26 percent in Germany, and 23 percent in California. Denmark and Germany have the first and second most expensive electricity in Europe.
By reporting on the declining costs of solar panels and wind turbines but not on how they increase electricity prices, journalists are — intentionally or unintentionally — misleading policymakers and the public about those two technologies.
The Los Angeles Times last year reported that California’s electricity prices were rising, but failed to connect the price rise to renewables, provoking a sharp rebuttal from UC Berkeley economist James Bushnell.
Recall what the Recucklican Majority passed during lame duck 2016?
“It is a tough issue,” Switch spokesman Roger Martin said. “There’s no question about it. We’re talking about introducing an entirely new industry to Michigan, something that is the future of this country and of this world. It’s a good, vigorous debate.”
A Few Details Michigan's Legislators Might Want to Consider
Michigan’s nitwit media have been gushing over the announcement last Thursday that Switch, LLC will purchase the erstwhile Steelcase Pyramid southwest of Grand Rapids and convert the site into one of their state-of-the-art SuperNAP cloud computing data centers. The ‘information economy’ has been touted as Michigan’s future by no less than Michael Dell. He was in Detroit to address the Economic Club after his company purchased EMC Corporation, another major data center operator with three facilities in Michigan, in a blow out $ 67 billion buyout. Switch SuperNAP promoters, notably The Right Place, Incorporated, are touting 1,000 new jobs in Gaines Township, but this should be regarded wth the same skepticism as any other MEDC clone employment prediction. No one has said anything about financing, but there is good reason to believe that Michigan will be asked to ‘participate’ here as well.
Steelcase vacated their distinctive Corporate Development Center in 2012 and sold it to to Norman Properties in May. Norman Properties, in turn, has agreed to sell this property to Switch LLC, pending the approval of State tax breaks. Those tax breaks have been introduced in the Michigan House by Representatives VerHeulin, Yonker, and Schor. Identical tax break legislation has been introduced in the Senate by Senators Hildenbrand, Schuitmaker, and MacGregor. These legislators are targeting quick passage in the legislative session which convenes after their Thanksgiving break. They might want to consider a few details before they lunge further forward.
This being RightMI, you might think this post is about those tax breaks. You would be wrong. There is actually a critical flaw in this project which will injure Consumer’s Energy electricity customers all across West Michigan. A couple of other issues exist as well, but they pale in comparison to the electricity consumption of this project. Those tax breaks are a lost cause in American politics today – not even worth protesting.
MITA gave another $ 25,000, new total circa $ 5.42 million
Michigan Aggregates Association gave $ 20,000, their first act of obeisance
PVS-Nolwood gave $ 25,000, new total $ 75,000
Operating Engineers Local 324 gave $ 35,000, new total $ 135,000
The motives of three late contributors are pretty obvious. PVS-Nolwood is a chemical company in Detroit specializing in acids and their disposal. As [a very profitable] part of this business, they unload neutralized acid byproducts on wastewater treatment plants as clarifiers. Those wastewater treatment plants just happen to be owned by various units of government which, in turn, use their water billings to rape the public at large. PVS-Nolwood have a long history of sucking up to Michigan’s power elites to further their very lucrative business interests.
So how should average middle class Michiganders engage in this electricity debate? What should they demand in the 2015 legislation on electricity? Can they prevent the titans from looting their family budgets?
First and foremost, Michiganders should demand an end to hybrid deregulation. All electricity consumers should be under the same regulatory scheme, with equal options to escape. No favoritism. This aligns the interests of politically potent, large electricity consumers with those of the average Michigander. This creates an effective counterbalance to the political power of the utilities; political power purchased with your electricity payments. Even full regulation is preferable to our current hybrid deregulation scheme.
Michiganders should further demand full deregulation of our electricity market. As regulated entities, utilities have a ‘cost plus’ mindset which relentlessly drives prices higher. Regulatory bodies limit themselves to dampening this drive for higher prices, but do not drive efficiencies which would genuinely control energy costs. Competition-driven efficiencies are very important to Michigan’s economy, which still has a significant, energy-intensive industrial base. Also Michigan’s utilities have not demonstrated any special competence operating their electrical power stations, so competition in the supply of electricity will promote best practices there and lower costs as well. Ultimately, a deregulated grid properly managed is more tolerant of supply shocks because more actors will be supplying the electricity.
The RPS should not be renewed at any level. Renewables should not be forcibly subsidized by any ratepayers, overtly or covertly. The current PA 295 regulatory scheme has residential electricity consumers subsidizing renewables through skyrocketing rates, while large consumers escape this burden. As renewable energy sources become cost effective, they will be welcomed by all parties.
If environmental wackos want their own electricity to come from RPS renewables, let them pay the full cost including base load backup costs. Most renewable sources are intermittent and require expensive base load backup capacity for periods where they cannot generate electricity. The Midwest Independent Transmission System Operator (MISO) historical record shows that Michigan wind power, by far the most significant current RPS component (883 turbines, about 58% of RPS power), was only available 31.5% of the time (termed ‘capacity factor’) during 2011 and 2012. During two months, July and August of 2011, wind was available only available 16% of the time. Most evaluations of the cost effectiveness of wind and solar generation pointedly neglect the costs of base load backup capacity to keep the lights on. Essentially, wind power capacity has to be backed up by 100% of its rated capacity with fossil-fueled base load capacity to prevent blackouts during zero wind periods, so why bother install wind power (or solar, for that matter) in the first place? Ratepayers subjected to RPS get to pay the capital costs for twice the generating capacity they actually need.
Fortunately, the greed political acumen of DTE and CMS Energy is coming to your rescue. Both utilities are seeking full reregulation of Michigan’s electricity market. They are issuing thinly veiled threats about brownouts ‘reliability’ of supply unless Michigan forces the fortunate 10% back into our utilities’ waiting arms. And with President Obama’s hobbling of coal-fired power stations ramping up, they actually have a point. So the fortunate 10% will have to seriously reengage in Michigan’s electricity rate debate or their electricity costs will skyrocket.