“[T]here is no companion prerequisite that such renewable programs be cost-effective or deliver reliable power…. This program appears designed for the privileged few to enjoy a subsidized electric energy existence, provides those ‘green bragging rights’ mentioned by a solar installer in this courtroom last September, but little else.”

Last May, Dominion Virginia Power petitioned the Virginia State Corporation Commission to introduce a voluntary ratepayer program to support up to 3 MW from distributed solar installations. Dominion seeks to offer the public an alternative to an existing, net-metering, residential solar panel program. This voluntary test Solar Panel Program would be guaranteed for five years at a “buy all/sell all” $0.15/kWh. It would be limited to an initial maximum scale of 0.2 percent of 2010 peak load.

Solar is an intermittent power source that would require storage to be on a stand-alone basis.…

“The Governor … earned the nod of those representing poorer districts by packing the bill with millions of dollars in grants to boost small and minority-owned businesses that might involve themselves in the offshore sector…. [P]rice caps on electricity bills [hides] the billions of dollars of extra cost that $190/MWh energy adds up to.”

Maryland governor Martin O’Malley is convinced he’s found the right formula for ensuring that his state becomes the first to site a wind facility off its coastline. Last week Maryland’s House quietly approved HB 226. The Senate version (SB 275), although still in Committee, is also expected to pass despite much controversy over cost and risks to captive ratepayers–and back-door cronyism for developers and other special interests.

But don’t be fooled by the political victory. Despite the Governor’s grand claim that his bill will deliver offshore wind at an affordable price, the numbers tell a different story.…

“We love energy with conviction, while they hate it with confusion.”

– Alex Epstein

On Sunday, February 17th, 350.org and the Sierra Club hosted the “Forward on Climate” rally on the National Mall in Washington D.C. It was billed as the “largest climate rally in history.” Just like the anti–Keystone XL rally in 2011, protesters pushed the Obama administration to continue to block the Keystone XL pipeline, which would bring crude oil from Alberta, Canada, to U.S. refineries.

But unlike the 2011 rally, Sunday’s protesters were challenged by Alex Epstein and his Light Brigade, an “educational counter-protest” whose members wore bright yellow t-shirts and shared their sincere appreciation for life-giving energy. I am proud to say I was part of that group.

Alex et al.…

[Update: Germany Stops Fighting Arithmetic and Ramps Up Construction of Economically Sensible Power Generation]

Two years ago we looked at the claim that wind generation can save money for power pool customers.  We found that the supposed savings could be realized only if the elephant in the room – the above-market feed-in tariffs – were ignored.

In other words, the total amount spent on electricity purchases from a power pool was augmented by the additional amounts consumers pay to fund the feed-in-tariff (FIT).  As long as wind generators can bid a low price but receive the higher FIT, then they have an incentive to underbid, thereby reducing pool prices, but not overall costs.

In addition, we looked at what an economically least cost system might look like in Germany over the next ten years. …