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Tag Archives: Renewable Fuel Standard


Unreliable Nature Of Solar And Wind Makes Electricity More Expensive, New Study Finds

By Michael ShellenbergerForbes

Solar panels and wind turbines are making electricity significantly more expensive, a major new study by a team of economists from the University of Chicago finds.

Renewable Portfolio Standards (RPS) “significantly increase average retail electricity prices, with prices increasing by 11% (1.3 cents per kWh) seven years after the policy’s passage into law and 17% (2 cents per kWh) twelve years afterward,” the economists write.

The study, which has yet to go through peer-review, was done by Michael Greenstone, Richard McDowell, and Ishan Nath. It compared states with and without an RPS. It did so using what the economists say is “the most comprehensive state-level dataset ever compiled” which covered 1990 to 2015.

The cost to consumers has been staggeringly high: “All in all, seven years after passage, consumers in the 29 states had paid $125.2 billion more for electricity than they would have in the absence of the policy,” they write.

Last year, I was the first journalist to report that solar and wind are making electricity more expensive in the United States — and for inherently physical reasons.

Solar and wind require that natural gas plants, hydro-electric dams, batteries or some other form of reliable power be ready at a moment’s notice to start churning out electricity when the wind stops blowing and the sun stops shining, I noted.

And unreliability requires solar- and/or wind-heavy places like Germany, California, and Denmark to pay neighboring nations or states to take their solar and wind energy when they are producing too much of it.

My reporting was criticized — sort of — by those who claimed I hadn’t separated correlation from causation, but the new study by a top-notch team of economists, including an advisor to Barack Obama, proves I was right.

Previous studies were misleading, the economists note, because they didn’t “incorporate three key costs,” which are the unreliability of renewables, the large amounts of land they require, and the displacement of cheaper “baseload” energy sources like nuclear plants.

The higher cost of electricity reflects “the costs that renewables impose on the generation system,” the economists note, “including those associated with their intermittency, higher transmission costs, and any stranded asset costs assigned to ratepayers.”

But are renewables cost-effective climate policy? They are not. The economists write that “the cost per metric ton of CO2 abated exceeds $130 in all specifications and ranges up to $460, making it at least several times larger than conventional estimates of the social cost of carbon.”

The economists note that the Obama Administration’s core estimate of the social cost of carbon was $50 per ton in 2019 dollars, while the price of carbon is just $5 in the US northeast’s Regional Greenhouse Gas Initiative (RGGI), and $15 in California’s cap-and-trade system.


The Renewable Fuel Standard is the Problem, Not the Solution

Ethanol Renewable Fuel Standard Green Energyby Peter Roff

Some time ago, the politicians in Washington decided that mandating the use of so-called renewable fuels in the nation’s energy portfolio would accelerate their development and production on a commercial scale.

It was a large scale test that has failed, for the most part. The Renewable Fuels Standard is based on the assumption that forcing energy producers to utilize corn-based ethanol, cellulosic ethanol, wind power, solar technology and other so-called alternative energy sources would create a market for them. As a result they would be more plentiful and, therefore, cheaper.

It hasn’t worked out that way. The RFS has resulted in increased costs all across the energy sector. Now, with that same sector focused on what the United States Environmental Protection Agency will announce is its proposed RFS for 2014, it’s time for Congress to consider getting rid of it altogether. Continue reading


Coalition Letter Opposing the Renewable Fuel Standard

Renewable Fuel Standard LetterheadSeptember 26, 2013

Re:  Renewable Fuel Standard “Reforms”

Dear Senator & Representative:

It has come to our attention that Congress is considering legislation this fall to reform the Renewable Fuel Standard (RFS). We, collectively and individually, believe the only reform to this failed government mandate should be to repeal the RFS. Repealing this mandate would bring certainty to the fuel markets and eliminate the harmful impacts this government program has had on businesses and consumers.

The RFS is a clumsy and misguided command and control mechanism that requires a certain level of ethanol to be blended into the nation’s transportation fuel supply. Gasoline has been required to contain 10% ethanol. The EPA plans to increase the amount of ethanol blended into gasoline by 50%. This is a horrifically bad idea. Congress has been working towards ending the counter-productive and costly RFS. Debt limit negotiations or other legislative vehicles moving through Congress at this time should not be used to expand regulatory burdens and impose additional costs on Americans. Continue reading


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