Renewable Energy: Free as the Wind?
Nicolas Loris /
The Senate Committee on Energy and Natural Resources met this morning and, among other things, discussed a national renewable electricity standard (RES). The RES, which mandates that a certain percentage of our nation’s electricity production come from wind, solar, biomass and other renewable energies, already passed out of committee but is likely to be a part of any energy agenda this year. A new Heritage Foundation study analyzing the costs of an RES finds that a national mandate for pricier, less reliable electricity would be harmful to American families, American businesses and the American economy.
The Heritage analysis models the effects of an RES that starts at 3 percent for 2012 and rises by 1.5 percent per year. This profile mandates a minimum of 15 percent renewable electricity by 2020, a minimum of 22.5 percent by 2025, and a minimum of 37.5 percent by 2035. It looks solely at onshore wind, which is currently the cheapest renewable energy source that can be scaled in significant fashion. While some studies have attempted to model the economic effects of an RES and found only marginal price increases, they fail to take into account the true cost of renewable sources. Wind is not dependable, it cannot be stored and it must be built in geographically disadvantageous locations that require significant new build for transmission lines. A detailed analysis of this can be found in the study. The Heritage Foundation’s Center for Data Analysis projects that an RES would: (more…)