Yet Another Misleading Report on “Low-Cost” Wind and Solar

 A recent report from the International Renewable Energy Agency (IRENA) claims that renewable energy is the most cost-effective source for generating new electricity globally. It suggests that 91% of new renewable power projects launched last year were cheaper than fossil fuel alternatives. However, this perspective overlooks key issues related to the reliability of renewable energy sources.

1. Renewable Energy's Intermittency: IRENA’s conclusions about renewables do not address the fact that wind and solar energy are intermittent. Unlike traditional energy sources, which can provide scheduled and reliable power, renewable sources are affected by weather, making them unpredictable.

2. Cost Comparisons: The Energy Information Administration (EIA) also supports the notion that renewable energy will dominate new generation capacity at a lower cost than traditional options, like natural gas. However, they fail to incorporate the costs of backup energy sources needed to compensate for times when renewable energy is not available.

3. Analogy of Bus Services: The report uses an analogy comparing unreliable buses (renewable energy) with conventional buses (traditional energy). Although the new buses are free, their unpredictability results in higher costs when alternative transport is needed, just like unreliable energy leads to additional expenses for backup generation.

4. Demand and Availability: Renewable energy sources like wind and solar are often less available during peak demand times or in extreme weather, leading to a reduction in their economic value compared to other energy sources.

5. Misleading Claims: Highlighting only the levelized costs of renewables without considering reliability misrepresents their true value. This distortion could lead to policymaking that results in electricity shortages for consumers.

Misleading claims about the cost-effectiveness of renewables can result in inadequate energy supplies and more electricity rationing, impacting public satisfaction and policy outcomes. It's crucial to recognize that reliability and access must be considered alongside costs when evaluating energy sources. 

https://wattsupwiththat.com/2025/08/05/yet-another-misleading-report-on-low-cost-wind-and-solar/