This week, the Colorado Legislature debated HB1001, a proposal to require utilities to get 30% of their electricity from so called renewable energy sources within ten years, up from close to zero today. Not only is the proposal ill-conceived and expensive, it is technically impossible too. Best of all, according to Colorado Democrats, utility rates will increase no more than 2% as a result of the program. Better than best of all, Colorado Democrats claim that the new regulations will bring more jobs to the state.
Where to begin? For starters, consider that despite what lame duck Gov. Ritter (D) says, no appreciable amount of renewable energy comes from solar, and it never will. Solar is prohibitively expensive and its cost would have to fall 10x before it could compete with wind power, and 30x to compete with coal. Ritter imagines 100,000 homes with solar panels on their roofs, but that $4bln program would not even make a dent in the 30% goal because Colorado has 1.7 million households. With solar, Ritter’s goal would cost more like $50bln. Solar is completely impractical, which is supported by the fact that it currently provides approximately none of the nation’s electricity, despite decades of government subsidies.
What about wind? Wind is better, only costing about 3-4x that of coal. States like Texas already generate a lot of wind power, albeit less than 5% of their electricity. With taxpayer subsidies, at least wind can make a dent in the renewable goal, but nowhere near 30%. That is because, while the wind does not blow all the time, Americans expect their hospitals and traffic lights to work 24/7. In Denmark, where the wind blows constantly off shore and everyone lives near the turbines, penetration is 20%. Since in Colorado the wind can sometimes not blow for a week at a time, and often does not blow during peak summer demand, the local utility must always have a backup source ready – usually natural gas turbines. That is a hidden cost of wind and solar – not only are renewables more expensive, but the system must also provide a backup source of power.
The payoff from wind power declines with each new turbine. An armada of turbines will generate more electricity than can be consumed when the wind blows, but even an infinite number of turbines generate zero power when the wind does not blow. As the number of turbines increases, their capacity will be wasted when the wind blows, yet they will do nothing when the wind does not blow, meaning there is an upper limit to wind power’s penetration regardless of the number of turbines. In the 1980′s the IEEE published a study suggesting that the maximum penetration of wind power would be 10%. More recently, experts think the penetration could be increased to 20% by building an extremely high voltage transmission grid, along with a system to shut off non-critical machines when the wind does not blow (i.e. smart grid). Now, despite the fact that environmentalists oppose smart grid construction, they want wind penetration to reach 30%.
The only way to achieve 30% renewable energy penetration is with power storage. Power storage would probably consist of millions of car batteries that would charge when the wind blows and power homes when the wind stops. A 2004 IEEE study showed that storage costs increase non-linearly as storage time increases (i.e. two hours’ storage costs more than twice one hour’s). This is because the system needs ever more windmills to charge the batteries when the wind does blow. A 30% penetration system would require massive storage capacity. Again, Ritter thinks all this can be achieved with a 2% rate increase.
Nobody has ever achieved 10% renewable penetration in the US, let alone the 20% that is currently Colorado law. 30% is not only prohibitively expensive, it is practically impossible. Of course Ritter is a politician, not an engineer. In his world, sweeping unachievable mandates are called visionary. To Ritter and the environmentalists, exposing the reality of HB1001′s costs amounts to greed and ‘putting profits before people.’
Of course nuclear is off the table. Anyway, a nuclear plant could not be built by 2020, even if it would cost less than 1/10 that of solar.
Where is the local utility, Xcel, in this debate? Silent, or more exactly bought off. During the original debate to set the mandate at 20%, Xcel dropped its opposition when it realized renewables were good for profits. Xcel, like most utilities is rate of return regulated. Xcel is allowed to recover a percent of its capital investment each year, plus the cost of operations like buying coal and driving repair trucks. Since renewables require many times the capital investment of coal, Xcel actually profits from renewable mandates. The next time Xcel calls itself ‘green,’ remember that it is really green with greed at the expense of ratepayers.
Back to what is best of all. Ritter claimed that because Colorado will pursue the impossible goal of 30% wind penetration, green companies would create jobs in Colorado. In Ritter’s mind, these companies would come to Colorado because they feel good about consuming expensive renewable electricity. Guess again, Governor. Turbines are made mostly in China where there are no steel tariffs, and the electricity comes from dirty coal. Green companies are still companies and when costs rise, they go elsewhere. Also, don’t forget all the evil non-green jobs Ritter’s new regulations would kill off.
With any luck Ritter’s mission to eliminate Colorado’s industrial economy won’t get far. Still, the fact that Democrats are trying is quite a shock to anyone who likes affordable electricity and the millions of Colorado jobs that depend on it. Here’s hoping that HB1001 represents the high water mark of the extreme left’s efforts to ruin Colorado’s prosperity.