Last Monday, I wrote about how renewable energy is reducing electricity prices in Spain. Maybe predictably, I got some pushback from readers staying that this is not the case in the US. As proof, one reader sent me the chart below of the average electricity price homeowners pay in California, which has aggressively moved to renewables vs. the average US homeowner.
It’s also a horses for courses argument. California power per sq km has a high population density. Therefore the additional transmission costs are materially lower when you have a high % of renewables. As you your population density declines the transmission costs rise exponentially. It a classic case of humans trying to understand simple problems with simple solutions. The real world is way more complex.
Until we have quantum shifts in energy storage technology that is scalable, commercial and feasible in engineering terms then the high % renewables argument remains a virtue signaling exercise. Just ask an engineer whose job is not at risk for speaking out.
Btw check out energy dome. It may be a complete failure but it’s the most realistic option for grid scale energy storage I’ve seen. Irony of ironies, it’s a carbon dioxide battery 😂
In addition to the factors you mentioned, we also pay more in CA for electricity because of the following factors:
1. Amortizing the cost of suddenly shutting down the San Onofre nuclear station a decade ago.
2. Paying for the re-licensing and extended operation of Diablo Canyon, so the same thing that happened to San Onofre doesn't happen to Diablo Canyon.
3. Paying costs associated with the San Bruno natural gas pipeline explosion a decade ago, and upgrades to other pipelines to prevent a similar disaster.
4. Paying costs associated with the pollution and leakage from the Aliso Canyon natural gas storage facility.
Great post. Got a big laugh out of "purity-obsessed Teutons (once again) assembling under their holy trees".
Aren't bots fun? 🤣
not a bot
Thanks for doing additional research on the topic in response to reader comment.
It’s also a horses for courses argument. California power per sq km has a high population density. Therefore the additional transmission costs are materially lower when you have a high % of renewables. As you your population density declines the transmission costs rise exponentially. It a classic case of humans trying to understand simple problems with simple solutions. The real world is way more complex.
Until we have quantum shifts in energy storage technology that is scalable, commercial and feasible in engineering terms then the high % renewables argument remains a virtue signaling exercise. Just ask an engineer whose job is not at risk for speaking out.
Btw check out energy dome. It may be a complete failure but it’s the most realistic option for grid scale energy storage I’ve seen. Irony of ironies, it’s a carbon dioxide battery 😂
In addition to the factors you mentioned, we also pay more in CA for electricity because of the following factors:
1. Amortizing the cost of suddenly shutting down the San Onofre nuclear station a decade ago.
2. Paying for the re-licensing and extended operation of Diablo Canyon, so the same thing that happened to San Onofre doesn't happen to Diablo Canyon.
3. Paying costs associated with the San Bruno natural gas pipeline explosion a decade ago, and upgrades to other pipelines to prevent a similar disaster.
4. Paying costs associated with the pollution and leakage from the Aliso Canyon natural gas storage facility.
There was a good study on this recently: https://www.pv-magazine.com/2025/01/03/high-electricity-prices-in-california-have-nothing-to-do-with-renewables/