But that is only half the story. The long-
One of the world's largest gas-fired com
-
awaited commercial viability of wind and
bined-cycle plants, the 1,875-megawatt
sun as primary energy sources has been set
Teesside plant in England, produces more
back by natural gas combined-cycle and
electricity each year than the world's mil-
cogeneration technologies. Natural gas
lions of solar panels and 30,000 wind tur-
technology today can produce electricity at
bines combined--and on fewer than 25
half the cost (or less) and with more flexi-
acres of land.
bility and reliability than power generated
The quantity differential partially
from well-sited wind farms on a tax-equal-
reflects relative capacity factors, which are
ization basis.1 0 7 The competitive gap with
around 95 percent for baseload gas com
-
solar power is much more pronounced,
bined-cycle plants and 20 percent to 40 per-
since solar power is triple (or more) the cost
cent for solar and wind that operate only
of well-sited wind. Simply put, the techno-
when the natural energy source is avail-
110
logical improvements in wind and solar
able. It also reflects siting prerequisites in
power have also occurred for traditional
light of natural conditions and consumer
fuels. In Europe, for example, an executive
demand. A wind site, for example, must
of Siemens AG recently reported that prices
have steady high winds, be away from large
of electricity from fossil-fuel plants have
bird populations, avoid slopes that may
fallen by an estimated 50 percent in the last
erode, and be in remote (and sometimes
five years alone.1 0 8
pristine) areas because of high noise levels
and poor aesthetics. Yet for economics'
This competitive gap, which environmen-
sake, wind farms need to be near popula-
talists once thought to be surmountable,
tion centers that have a power deficit
may persist for a long time. A joint study in
because of high transmission investment
1997 by the Alliance to Save Energy, the
costs and physical losses of electricity.1 1 1
American Council for an Energy-Efficient
Economy, the Natural Resources Defense
This combination works against many
Council, Tellus Institute, and the Union of
sites, making well-sited wind, ironically, a
Concerned Scientists concluded:
"depletable" energy option. So while ideal
wind sites may generate grid power at a cost
Although the cost of renewable elec-
only double that of new technologies using
tric generating technologies has
natural gas, other sites, for example, ones
declined substantially and their per-
from which the electricity must be trans-
formance has improved, the cost of
ported long distances, worsen this already
competing fossil technologies has
sizable cost disadvantage. Consequently,
The commercial
also fallen. In particular, the average
wind is not a generic resource like a conven-
viability of wind
price of natural gas paid by electric
tional energy. Wind sets up a growing eco-
and sun as prima-
utilities has been low (about
nomic and environmental conflict as more
$2.30/MMBtu) since the mid-1980s
and more sites must be tapped to meet
ry energy sources
and is widely expected to remain so
external political demands.
has been set back
for the next 10 years or longer.1 0 9
by natural gas
Other Renewables Also Problematic
The other basket of "renewable" alterna-
A factor as important as cost and relia-
combined-cycle
tives to fossil fuels--geothermal, hydropower,
bility for national energy policy is the enor-
and cogeneration
biopower, and fuel cells--may be even less
mous quantity disparity between gas-fired
likely to gain market share in the foreseeable
electricity (and other fossil alternatives) and
technologies.
future than are wind and solar power.
solar- and wind-generated energies. A single
Geothermal and hydroelectricity are
large combined-cycle gas plant can produce
more akin to conventional energies than to
more electricity than all the wind and solar
unconventional ones. Each has a long his-
facilities in the United States combined.
19