Institute for Energy Research

Levelized Cost of New Electricity Generating Technologies

Download PDF: Levelized Cost of New Electricity Generating Technologies The Energy Information Administration (EIA) produces forecasts of energy supply and demand for the next 20 years using the National Energy Modeling System (NEMS)(1). These forecasts are updated annually and published in the Annual Energy Outlook (AEO).[2] All sectors of the energy system are represented in NEMS, including the electric power generation, transmission, and distribution system.

Peak Not: Running Into Oil and Gas

"Resources are highly dynamic functional concepts; they are not, they become, they evolve out of the triune interaction of nature, man, and culture."[0] So said the institutional economist Erich Zimmermann, explaining why so-called fixed, depletable resources expand rather than deplete in free market settings. Julian Simon similarly stated: "Human beings create more than they destroy."[2]

Wind Finishes 2010 with Poor Showing in Capacity Increases

The wind industry would like you to believe that windmills are now cost competitive with natural gas units for electricity generation[0], but in 2010, natural gas fired units added twice the capacity that wind units added through most of the year.[ii] Why? There are several reasons. The recession lowered the demand for electricity, natural gas prices are low due to production and reserves of shale gas, and one of wind’s federal subsidies was expiring at the end of 2010.

The Apollo Program and Making Renewables Affordable: Two Completely Different Goals

Senator John Kerry encouraged President Obama to call for an Apollo program for energy at the State of the Union. The problem is that the goal of the Apollo program is far different, and far more easily achieved than making renewables affordable.

Obama on Energy: Fancy New Rhetoric, Same Failed Policies

WASHINGTON – Inthe State of the Union address, President Obama missed a prime-time opportunity to truly usher our nation into a secure energy future. He changed his rhetoric and his tone, but not his harmful policies or misinformed ideology. Institute for Energy Research President Thomas J. Pyle issued the following statement:

Washington Logic: It hasn’t worked in the States, Let’s take it National

WASHINGTON -- The Institute for Energy Research (IER) today released a comprehensive new study, The Status of Renewable Electricity Mandates in the States, which examines the status and impacts of state-based renewable electricity mandates. IER's study found that in states with renewable energy mandates, the deadlines are frequently not being met, they are expensive to consumers, and hostile to job creation. To view an interactive map that illustrates the study's findings, visit this link.

Optimism vs. Pessimism on Oil

U.C. Berkeley economist Brad DeLong has a recurring series on his popular blog where he nominates people for being the "stupidest person alive." DeLong's fans think this is quite amusing, whereas his critics might disagree. Recently DeLong nominated a trio of people who thought the world was in store for an "energy cornucopia."

For China, Coal is Still King

"The U.S. needs to maintain its lead on innovation in the energy sector given the rise of China's growing energy needs and its commitment to clean technology, according to Secretary of Energy Steven Chu. Chu likened the energy race to the "Sputnik" movement..."[0] Introduction China is currently the largest producer and consumer of coal in the world, outstripping the United States by a factor of more than 3[ii]. In fact China's growth in coal consumption is so great that it needs to import coal to satisfy its demand even though it ranks third in coal reserves in the world[iii]. China became a net importer of coal in 2009, buying almost 151 million tons[iv] from coal exporting countries, including the United States and Australia. That number is expected to increase substantially in the years to come. The Chinese use coal, the primary fuel spurring its economic growth, in most sectors of the economy, but particularly in the electric power and industrial sectors. China's economic growth is so phenomenal that it expects to have 350 million people, more than the entire population in the United States,[v] living in cities that do not yet exist within the next 15 years,[vi] which will require additional electrical capacity of an amount almost equal to the total electrical capacity of the United States.[vii]

You Can’t Make This Stuff Up

According to its web site, Range Fuels, a privately held Colorado-based company, says they "convert biomass that cannot be used for food into low carbon biofuels and clean renewable energy using emerging clean energy technologies."

A few notes on Energy Policy of the past and present Congressional Sessions

Dr. H. Sterling Burnett is a guest blogger and a senior fellow with the NCPA. With the advent of the new Congress, it seems a good time to assess the good, the bad and the ugly that occurred in the waning days of the previous Congress and to look forward, to the most pressing issue that faces the 112th Congress.

Consumers Get Screwed on Light Bulb Deal

The concept of creative destruction implies that an individual or a group of individuals discovered a better way of doing business and in turn destroys the old way of doing business. For instance, those who made light bulbs creatively destroyed the candle maker. The consumer, who demands better service at lower prices, drives this process of creative destruction. However, this lesson has been lost on California lawmakers when it comes to energy policy – and everything else for that matter – but especially when considering the compact fluorescent light (CFL).

London Calling: Deepwater Drilling Ban Unnecessary

The House of Commons Energy and Climate Change Committee issued a report this week titled "UK Deepwater Drilling--Implications of the Gulf of Mexico Oil Spill." The report draws lessons from the BP oil spill to apply to offshore drilling operations. Several recommendations are put forth that would strengthen the response to potential future events and help prevent such disasters from occurring in the first place.

Mother Nature Provides a Lesson on Scarcity

Today, Mason Inman penned an article in the National Geographic that discusses a paper which argues it is both possible and affordable to displace all fossil fuels by 2030 with renewable sources. According to the paper, the main bottleneck would be political will and the production of rare earth elements. But even if those two factors were not an issue, the logistics alone of building the necessary green energy systems is staggering.

EDF Economist Moves to National Economic Council

Earlier this month, Nathaniel Keohane replaced Harvard’s Joseph E. Aldy at the White House’s National Economic Council. Keohane’s previous post was chief economist for the Environmental Defense Fund. In his new position he will help direct environmental and energy policy, according to the New York Times’ “Green” blog.

IER: BP Spill Commission Was Flawed From the Start

Washington, D.C. – Dan Kish, Senior Vice President at the Institute for Energy Research, released the following statement in response to findings released by the National Commission on the BP Deepwater Horizon Oil Spill & Offshore Drilling:

Time Story Reaffirms Fed’s Role in Oil Spike

Last week we explained the connection between rising gasoline prices and the Federal Reserve’s “quantitative easing” programs. On the same day as our post, Time ran a piece entitled, “Is the Fed to Blame for Soaring Global Oil Prices?”

Gas Prices and Bernanke

As most Americans know, gas prices are unusually high for this time of year. Although some people blame it all on "greedy oil companies"--an explanation that begs the question of why oil companies got so greedy this Christmas--a better culprit is Ben Bernanke, chairman of the Federal Reserve.

Talk is Cheap: We Need Action on Offshore Drilling Permits

Earlier this week--after the Wall Street Journal exposed the fact that no offshore drilling permits have been issued since the moratorium was lifted in October--the Obama Administration announced that previously halted deep water drilling activity can resume.

Top 5 Energy Issues the New Congress Should Tackle

1. No subsidies. Energy subsidies do one thing--they increase the price of energy of all Americans and line the pockets of the special interests that promote these discriminatory policies. To build a stronger economy and create more jobs, we should reduce all federal energy subsidies and set-asides--the means no subsidies for oil, coal, natural gas, wind, solar, or any other type of energy.

China’s Nuclear Program: Fast and Relatively Inexpensive

China can build a Western-designed nuclear reactor in 46 months, or less than 4 years. That's quite a feat considering that it takes France almost 6 years to build one. And, it costs the Chinese 40 percent less, around $4 billion, compared to almost $7 billion for France. How do the Chinese accomplish such a task when France, a country with lots of experience, takes longer and spends more? First, there is minimal red tape, so plants are approved quickly. Second, financing of capital is available through state ownership of the industry. Third, low-cost labor is available with experience in the construction of major infrastructure projects.[0]