Is Fear Over the Cost of Renewable Energy Overblown?

By energy_linguist, May 29, 2009, Green, News

If you ask Andy Stone over at Forbes, then the answer is yes. Recognizing that opponents generally tote the economic argument in their pockets, he raises some very poignant points about a 25% renewable energy standard in 2025. The Energy Information Administration (EIA) recently conducted a study detailing the particulars of the government requiring utilities to produce more renewable energy.

The results are not as clear cut as I would have assumed. The EIA study details that if 25% of U.S. energy generation was renewable, the demand for natural gas and coal-produced power would lower enough to counteract some of the costs associated with the push for green. If the demand drops, the prices would likely follow, offsetting or alleviating some of the concern over rising electricity prices.

In fact, the EIA predicts a 3% increase, which is certainly not as drastic as some opponents of green energy would argue. The joker in the deck so to speak is the cost to update an antiquated electricity grid. The challenge: Figuring out how to transmit the 25% plus renewable energy from more remote areas of the country.

Original article: Can Clean Energy Be Cheap Energy?

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