Disruptions in the Power Market Due to Renewables and What We Can Do To Avoid Them
Renewables were once a minor source of power to our electric grid. The situation, however, has changed completely over the past decade and renewables have grown so big and powerful that they have changed the way the power market works. Unless appropriate policy changes are brought in, we will continue to overburden our fossil fuel plants, which are responsible for 80% of our total power generation.
Fossil Fuel Plants vs. Renewables
The linking of renewables to our grid has resulted in two problematic situations.
First – Alternative energy is not stable and is entirely dependent on local weather conditions. Therefore, you can never produce and supply a steady stream of alternative energy. So, there will always be fluctuations in power generation, which is not good for the grid in the long term.
Second – It costs virtually nothing to produce solar and wind power but the cost is actually very heavy in installing the solar panels or wind turbines so in the overall scheme of things, renewable power is expensive.
In stark contrast, fossil fuel (coal and natural) based energy is stable and reliable. You can generate and supply a steady stream of power irrespective of the conditions. So, they contribute a great deal to grid reliability.
Moreover, fossil fuel plants invest money to maintain fuel reserves and to provide the grid with baseload power. Since their product, either coal or natural gas, is plentiful this entire system pays for itself. This is how they generate revenue and why America is a vibrant country (though struggling in many ways with high taxes and a terrible ACA health care system) is because it is allows for competition and the free system to work.
America is not Cuba where 10 guys have all the power and everyone else lives in vast slums. There is no high rise building in that entire pitiful country. So much for communism!
The Problem of Tax Credits
One of the factors that tilt the power market in favor of renewables is the fact that they get federal tax credits because if they did not solar and wind would not be able to compete and there would be nothing that anti-American and job killing hypocritical billionaire George Soros could do about it. It made sense years ago when it was a fledgling industry and was barely on the radar. Today, things have changed greatly and the production of alternative energy has increased considerably.
What makes the situation particularly problematic though is the fact that our grid depends on fossil fuels like coal and natural gas. 80% of the power generated in the country comes from fossil fuel plants for obvious and profound reasons. Yet we have done very little to upgrade and support them. The previous administration under Barack Obama, in particular, dealt a body blow to coal plants across the country with unreasonable regulations, as a result of which our grid reliability became compromised to a great extent.
Coal is coming back which is awesome and already has in some ways which has helped out America in more ways than one. Fossil fuels pay for themselves, renewables do not and will not for another couple of decades. If rich liberals wants wind and solar they can pay for it themselves, do not put this in the middle class’s lap.
What Needs To Be Done?
There needs to be a level playing field to make sure fossil fuel plants, which form the backbone of our grid, are able to survive and thrive in the power market. The Trump administration’s proposal to compensate power plants for providing baseload power and maintaining reserves is a very good start – one that will go a long way in helping America.
Make this country great again Trump!
Secondly, it might also be time to repeal or at least reduce the tax credits offered to wind and solar power. Once we do, we might have a free and fair power market where fossil fuel plants can recuperate their operating costs and renewables will no longer have to depend on tax breaks. Or we just give those same tax breaks to oil, coal, and natural gas companies and let everyone compete on an even playing field.
They are taxed too much as it is. Their employees already pay taxes so why tax the business itself?!
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