Governments worldwide invested a staggering $1.8 trillion in the green transition last year, despite assertions that solar and wind energy are the cheapest forms of electricity. This narrative, often championed by green lobbyists and politicians like United States President Joe Biden, is coming under scrutiny for its deceptive nature.
While it’s true that wind and solar energy can be cost-effective when the sun is shining and the wind is blowing, their intermittency poses significant challenges. Unlike fossil fuels, which provide continuous power, renewables require backup systems, adding hidden costs to their operation. This intermittency issue contributes to the continued reliance on fossil fuels for nearly two-thirds of global electricity generation.
To illustrate the problem, imagine a solar-powered car touted as cheaper than its gas counterpart. However, it’s useless at night or on overcast days, necessitating the retention of a gas vehicle as backup. Similarly, societies reliant on solar and wind energy must maintain backup fossil fuel infrastructure, driving up costs and complicating energy provision.
This issue is particularly acute in developing countries with limited fossil fuel infrastructure. Despite reports of increased adoption of solar and wind energy in countries like China, India, and Indonesia, coal remains the primary source of additional power. The reliability of fossil fuels outweighs the intermittent nature of renewables in these contexts.
Critics argue that conventional cost assessments of solar and wind energy overlook their unreliability. While the upfront cost may appear competitive, factoring in the expense of backup systems and storage reveals a different picture. One study suggests solar energy costs could increase by 11 to 42 times when reliability costs are considered.
Moreover, the environmental impact of discarded wind turbine blades and solar panels adds another layer of cost. In some areas, disposal issues are already apparent, with toxic chemicals leaching into soil and water supplies. These challenges, compounded by the short lifespan of renewable energy infrastructure, significantly inflate the true cost of solar and wind energy.
Rather than relying on unsubstantiated claims of renewables’ cost-effectiveness, critics advocate for increased investment in low-CO2 energy research and development. Only through technological advancements, including improvements in battery storage and efficiency, can renewable energy sources truly compete with fossil fuels. Until then, assertions of renewables’ economic superiority remain wishful thinking.