How CO2 Distorts the Energy Equation
There is no question that electricity from PV Solar and Concentrating Solar costs more than from natural gas or coal, yet radical environmentalists have devised a way to say the opposite.
Again, we live in an Orwellian world, where words mean the opposite of what they have traditionally meant.
In Minnesota, they have determined that PV Solar costs less than electricity from natural gas or coal-fired power plants.
How did they achieve this legerdemain?
In the middle ages people proposed Alchemy as a means for turning ordinary metals into gold. We now have the modern Orwellian version as established by the EPA and adopted in Minnesota.
Add the Social Cost of Carbon to the cost of electricity generated by natural gas and coal to establish that PV Solar is less costly.
Minnesota selected $37 per ton for the social cost of carbon, as currently established by the EPA, though the social cost of carbon ranges between $12 per ton and $116 per ton in 2015, rising to $28 per ton and $235 per ton in 2050.
These costs were established under President Obama’s Executive Order 12866, by the Interagency Working Group on Social Cost of Carbon1.
These estimated social costs of carbon are largely based on computer models that have been discredited because they can’t replicate actual temperatures. But the working group assumed that the threats from climate change, based on these computer programs, should be the basis for establishing the social cost of carbon.
Minnesota has established a “value of solar” formula that has been affirmed by the state’s Public Utility Commission.
So a price has been set on carbon, and used to make decisions that affect the public.
The cost of PV Solar is still higher than the cost of generating electricity from natural gas or coal-fired power plants, but by a stroke of the pen, PV Solar has been deemed less costly.
We should look at what’s happening in Germany to see how this line of thinking is destroying Germany’s electric utility companies. In 2012 only 22% of Germany’s electricity came from renewables, and their energy revolution, Energiewende, calls for 80% by 2050, yet the system is already crumbling under the rules that work against fossil fuels.
Minnesota is falling into the same trap by placing a price on carbon.
- Technical Support Document: Revised November 2013:http://www.whitehouse.gov/sites/default/files/omb/assets/inforeg/technical-update-social-cost-of-carbon-for-regulator-impact-analysis.pdf
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