GP: Adding Renewables to the Grid

[Anne and Bob Rose <anne_bobrose@yahoo.com>]

(This is intended for the list-serve.)

The current green power paradigm is limited by the
fact consumers are buying power from existing
renewables sources. If demand goes up with a fixed
supply, first the prices go up. If the prices go up
enough, then developers will add new renewable
supplies. This is a long process that presumes a high
enough price will not be too high to scare away
customers.

The problem is that most honest-to-goodness renewables
(natural gas is a fossil fuel and hydro is not
something we need more of on any scale) are
subsidized. Subsidies are defined here as mandatory
taxes or mandatory rate payer fees, where consumers
have to comply. If green power were to do away with
the need for subsidies, the price for renewables would
arguably need to be 50% higher than traditional rates
to encourage development on a sizeable scale.

If therefor green power can not do away with the need
for subsidies (which is my contention), then we are
back at square one waiting for more subsidies. The
problem here is that today's system benefit charges
are targeted largely to improve reliability, and much
less for the environment, so don't hold your breadth.

The solution I believe is to give consumers a choice
to donate a small monthly amount (~$5) on their
utility bill, which is aggregated to directly offset
the first cost of additional renewables. By lowering
the first cost, the renewable power plant can then
sell power at market price, and remain solvent.
Today's green power paradigm asks consumers to pay a
premium for renewables that were largely subsidized,
and again does not directly encourage new renewables.

I sadly feel we can kiss subsidies (mandatory taxes
and fees) to offset renewable good bye, at least on
any sizeable scale.

To the extent anyone reads this list-serve, any
thoughts?

Bob

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