Which renewable energy source is the most expensive?

Cheaper renewable energy

We are now in the middle of a debate about the convenience of nuclear energy, the detractors argue the potential danger it represents, those in favor say it is a clean and cheap energy. And I wonder why it is so cheap, or rather, why renewables are so expensive.

The costs of energy production are influenced by several factors, but I will focus on the most significant: the transformation infrastructure and raw materials. I will leave aside maintenance costs, which I assume that all infrastructures have them to a greater or lesser extent, but their cost is not very relevant.

Now only micro hydroelectric power plants, biomass or MSW utilization centers are being built (when they are not burned in the old thermal power plants, despite their low performance as fuels).

Is wind energy expensive or cheap

Renewable options, such as solar and wind, are already the cheapest source of electricity generation in 90% of the world’s markets, meaning that developing countries can avoid oil and gas as they try to meet growing electricity demand.

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New research from India’s Council on Energy, Environment and Water (CEEW) and financial think tank Carbon Tracker shows how emerging markets are already “ditching” fossil fuel infrastructure and heading straight to green power generation.

And, as demand stabilizes, the study finds that continuing to build fossil fuel-powered infrastructure could cost governments billions in stranded assets.

“Emerging markets are on the verge of generating all of their electricity supply growth from renewables,” said Kingsmill Bond, energy strategist at Carbon Tracker and co-author of the report.

The cost of renewable energy

Today’s minimum is set at 100.83 euros per megawatt-hour, while the maximum will reach 110.64 euros/MWh. These high levels will have an impact on the bill of people with the regulated tariff (PVPC), although not directly. We must remember that the price of electricity accounts for 24% of the final electricity tariff that domestic consumers end up paying.

In demand peaks such as heat waves, renewable and nuclear energies are not enough to supply the entire population and gas is used, at historic prices. When CO2 is emitted, an associated tax must also be paid. Using a lot of energy is doubly expensive.

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The solution is not simple. Ramón Roca, director of El Periódico de la Energía, points out that “the government does not have much leeway unless it touches what has nothing to do with the price of electricity in our electricity bills. That is why it can only reduce taxes, remove the premiums for renewables (creation of the FNSSE) or take the debt of the electricity system to the PGE”.

Non-renewable energy source

Wind and solar have become the cheapest sources of electricity virtually anywhere in the world. This is the main conclusion that came out of a conference organized by Bloomberg New Energy Finance (BNEF) in London on Monday.

However, one of the most striking things that BNEF presented at the conference was its prediction about the integration of renewables into the different electricity mixes. He predicted that there will not be a 100% renewable mix.

There is an economic limit to the spread of these clean energy sources, BNEF chief economist Seb Henbest told the research group’s annual conference in London. There will come a point in every country where the saturation point will be reached because the technology no longer reduces generation costs compared to running the existing thermal generation fleet.

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Even in Europe, which has some of the strictest policies encouraging renewables and discouraging fossil fuels, wind and solar are unlikely to exceed 80% of supply.