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Solar and Wind Power So Cheap They're Outgrowing Subsidies (bloomberg.com) 297

For years, wind and solar power were derided as boondoggles. They were too expensive, the argument went, to build without government handouts. Today, renewable energy is so cheap that the handouts they once needed are disappearing. From a report: On sun-drenched fields across Spain and Italy, developers are building solar farms without subsidies or tax-breaks, betting they can profit without them. In China, the government plans to stop financially supporting new wind farms. And in the U.S., developers are signing shorter sales contracts, opting to depend on competitive markets for revenue once the agreements expire. The developments have profound implications for the push to phase out fossil fuels and slow the onset of climate change. Electricity generation and heating account for 25% of global greenhouse gases. As wind and solar demonstrate they can compete on their own against coal- and natural gas-fired plants, the economic and political arguments in favor of carbon-free power become harder and harder to refute. "The training wheels are off," said Joe Osha, an equity analyst at JMP Securities. "Prices have declined enough for both solar and wind that there's a path toward continued deployment in a post-subsidy world."
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Solar and Wind Power So Cheap They're Outgrowing Subsidies

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  • Solar was always going to cross the threshold at some point, early subsidies probably made that happen a bit sooner than it would have otherwise - time to ditch subsidies and let the technology stand on its own, without regulation distorting progress.

    Wind power can go DIAF as far as I'm concerned however, it's the worst for of renewable energy and in 20 years we'll have a mess of dead towers no-one wants to pay to tear down.

    • Re: (Score:2, Interesting)

      by iggymanz ( 596061 )

      20 years is a fine lifespan, and you're wrong about wanting to tear them down, lots of valuable scrap metal in them. If they're in windy places they'll be replaced or upgraded

    • by lgw ( 121541 )

      Heck, even the headline is a subsidy. More truthful to say "no longer so expensive as to be economically non-viable". That's a long way from cheap.

      I certainly agree solar is just a matter of time, but until we have orbital solar it won't be base load, and it will never be the answer for heavy industry (something like 20% of non-transport energy use is "primary thermal", that is, it never becomes electricity, e.g. blast furnaces). Orbital solar is the inevitable eventual future of course, with fusion for

    • Oh, and it works in a northern hemisphere winter quite well too instead of only working for 8 hours a day at most IF its not cloudy. And north of the arctic circle when solar is a waste of fucking space for 6 MONTHS of the year.

    • by Immerman ( 2627577 ) on Thursday September 19, 2019 @11:51AM (#59212998)

      >time to ditch subsidies and let the technology stand on its own, without regulation distorting progress.

      Sure - but lets ditch all the subsidies for fossil fuels too, to keep the playing field even.

      No more tax breaks. No more indemnification against responsibility for ecological disasters. No more foreign wars of aggression fought in order to maintain the flow of cheap oil. No more grandfathered amnesty on the hideous amount of radiation and other pollution pumped out by coal plants. No more free pass to strip-mine coal veins and tar sands without performing thorough environmental rehabilitation afterwards.

      The fact that unsubsidized solar is becoming cost-competitive with heavily subsidized fossil fuels is truly impressive, but lets not go back to actively encouraging fossil fuels instead by subsidizing them exclusively.

    • by MrKaos ( 858439 ) on Thursday September 19, 2019 @12:11PM (#59213068) Journal

      I'm concerned however, it's the worst for of renewable energy and in 20 years we'll have a mess of dead towers no-one wants to pay to tear down.

      That's a lot like Nuclear power stations that have been retired. They *can't* be torn down for decades as they cool. For example Greifswald NPP [wikipedia.org] in Germany was decommissioned 30 years ago and is still standing while it is slowly disassembled and will take decades to complete.

      There are 400 Nuclear Power plants around the world that will all have to go through this process eventually because no-one thought of how they would be demolished when they reached the end of their service life.

      It's a difficult problem that, even now, the nuclear industry is intensely researching for ways to blame NIMBYs.

  • by Rei ( 128717 ) on Thursday September 19, 2019 @10:55AM (#59212694) Homepage

    The whole point is to advance the technology level and get them to economies of scale so that they can survive on their own.

    • Of course the poor struggling fossil fuel industries still need those subsidies, both direct and in "defense" spending...

    • I do wonder what the point is then of fossil fuel subsidies? Do we still need those?

      • As long as fossil fuels are critical for infrastructure it will be subsidized. The government has to have assurances in place that the cogs in the machine keep on turning, after all. Think of subsidies as a lubricant!
        • Oh I know why, I was being facetous. The point is with the insane profits being made on the oil industry with oil companies topping the most wealthy companies that don't have a business model based on speculative value due to user data, why is it being subsidised at all? The only thing that is being subsidies are rich share holder's pockets.

      • by ceoyoyo ( 59147 )

        Fossil fuels are strategic national resources and infrastructure for every country on the planet. That's why they get subsidized, and will continue to be subsidized until you can run your tanks on something else.

    • Got it in one. 'Government subsidies' incentivize people and companies to at least try what's being subsidized so it has a chance to gain a foothold.
      For instance: A subsidy program for plug-in electric car purchases would help along adoption of them, which would increase production of them, which would lower the cost to produce them, which would lower the cost to the consumer to purchase them. Everybody wins.
  • Great to see renewables getting lower in cost. We really need to stop burning fossil fuels. They currently receive over $5 trillion in subsidies annually (IMF). They need to be more expensive.

    • Re: (Score:2, Insightful)

      by Train0987 ( 1059246 )

      $5 trillion in annual subsidies? If you're going to make up a number at least have it be somewhat believable. If you got that number from somewhere and just believed it unquestionable that says something about your bias.

      • by anw ( 42556 ) on Thursday September 19, 2019 @11:24AM (#59212846)

        The '$5 Trillion annually' number is from an IMF working paper. It has been broadly referenced.

        https://www.imf.org/~/media/Fi... [imf.org]

        The original poster should have given the reference, and you can certainly argue with its validity. But it isn't ridiculous, and it wasn't pulled out of a hat.

        • It is utterly ridiculous. The annual GDP for the entire f'ing planet is only $88 trillion. 6% of the entire globe's GDP is not being spent on subsidies for fossil fuel companies. Use some common sense.

          • by SirSlud ( 67381 )

            "6% of the entire globe's GDP is not being spent on subsidies for fossil fuel companies."

            "This fact can't be true, because it doesn't sound possible or right." If that's your definition for common sense, that's a pretty lousy brain you have.

          • It is utterly ridiculous. The annual GDP for the entire f'ing planet is only $88 trillion. 6% of the entire globe's GDP is not being spent on subsidies for fossil fuel companies. Use some common sense.

            Common sense would be that countries such as Russia don't subsidies their single biggest trade and resource to the tune of 6% of their GDP, it's more like 40% for them.

            The IMF report even breaks down the post tax subsidy as a fraction of GDP per country. In the USA it's 3.9%. In the Ukraine it's 66%, which happens when your country sits on a fuckton (actual metric unit) of gas.

        • " projected global energy subsidies for 2015 at a striking $5.3 trillion, or 6.5 percent of global GDP, with under-charging for domestic air pollution accounting for about half of the total subsidy"

          So we're down to under 3 trillion without even trying already. Don't get me wrong, I think subsidies are stupid but let's be honest about them.

          • " projected global energy subsidies for 2015 at a striking $5.3 trillion, or 6.5 percent of global GDP, with under-charging for domestic air pollution accounting for about half of the total subsidy"

            So we're down to under 3 trillion without even trying already. Don't get me wrong, I think subsidies are stupid but let's be honest about them.

            I think not charging for pollution is a subsidy. It's a cost to everyone that bears the effects of the pollution, i.e. all of society. That externality should be internalized by requiring polluters to pay that cost, since they reap the benefits. Markets work best when all costs are factored in.

      • Yeah I know. It's $5.2 trillion, not $5 trillion. You're more than welcome to read the 39 page working paper published by the IMF on exactly how they got to that number, but my guess is your belief is entirely based on the size of the number combined with an unhealthy dose of ignorance.

    • Fine. Then we also need to stop education subsidies where we can claim on taxes any educational cost's. The same should be done with construction and banking subsidies where we claim mortgages on taxes. Don't forget about health care subsidies where we can claim health care bills.

      Don't forget that there are many 401/retirement funds that invest in all of the above. Nothing like screwing over peoples retirement plans. But I am sure YOU don't care about those common people. It's all about your pet pe
      • by ceoyoyo ( 59147 )

        Subsidies are a government tool to encourage particular development. You're supposed to give subsidies for things you want. An educated populace, for example, has *lots* of knock on benefits from development of high tech industry to lower crime rates. There's considerable evidence that fossil fuel use has lots of detrimental externalities.

        Policy isn't (supposed to be) a game of "oh yeah, well, I didn't get my handout so you shouldn't either!"

  • Price addresses onlly one aspect of the problem when considering phasing out fossil fuels. Intermittency of wind and solar power is the other, so storage will be the next big thing.
    Until then, we will have a hybrid system given the reliability of fossil fuel plants.
    The best on this respect are the gas-fired plants, where power generation can be ramped up and down quickly to keep level with the demand. Thiese plants will have the edge when generation will have to match both the variiable load, and the unpred

    • Renewables *with storage* are already competing with the price of fossil fuels, so the market says intermittency is not a problem.

      • by vakuona ( 788200 )

        Renewables *with storage* are already competing with the price of fossil fuels, so the market says intermittency is not a problem.

        No it isn't. Not even close. Wake me up when we have a storage facility that can store a day's worth of production, and I will point out that you need 20 times that storage and go back to sleep.

        Renewables (excluding hydro) are paired with gas - show me any country / state with a large proportion of renewables (excluding hydro), and I will show you a country / state generating even more of its energy with gas. As far as I can tell, it appears you need at least as much nameplate gas for every unit of wind or

      • Citation needed...
    • The problem isn’t intermittency. The problem is the expectation of all or nothing, a false dichotomy. As a realist, I say there will be a need for power generation at all times of the day regardless of weather. That may be addressed by some fossil fuel or nuclear or power storage (batteries, compressed gas, etc.) Idealists think solar or wind will replace fossil fuels in the near future 100% of the time. That’s not realistic. On the opposite end is your advocacy of fossil fuels despite clear dow

      • by MrKaos ( 858439 )

        That may be addressed by some fossil fuel or nuclear or power storage

        I think we need something like Godwin's law for energy. For any given thread about wind or solar, at a certain threshold of posts someone will bring nuclear power into the discussion.

        Perhaps Nukker's Law may be a good suggestion for the name of this phenomenon?

        • And what is the problem with discussing nuclear power generation in a discussion about power generation?
        • by jwhyche ( 6192 )

          There is a reason the topic of nuclear power also ways comes up in subject of renewable energy. People think that renewable and green are the same thing, which they are not. People want green energy with zero emissions Which you simply can't have without nuclear, with current technology. Well not if you want to keep the lights on 24/7.

      • Just wanted to point out that that I am not advocating fossil fuels. I am merely pointing out that at present we still have to keep generation in step with the load.
        Storage plays a very small part, I certainly hope there will be a lot more storage capacity available in the future.
        And for matchiing generation with load gas fired plants can be cycled the fastest, on a half-hour scale.
        Coal plants can be cycled on 4-hour blocks, way too slow to keep with the daily variatiion of the load.
        Nuclear runs only baselo

    • Re: (Score:2, Insightful)

      by ceoyoyo ( 59147 )

      Renewables with gas plants to make up the shortfalls seems like a great idea, with the gas plants phased out in favour of storage as it becomes more competitive seems like a great idea. Shockingly, that's what it looks like is happening. Economics wins again.

      But on Slashdot it's gotta be all or nothing.

      • That is what is slowly happening - but if you dig into the data about "cheap solar/wind!", you find they do NOT include the costs of the backup gas plants in their calculations. That is, essentially, lying. The reality is that the backup could provide all the power you need - and then solar/wind is IN ADDITION to that cost. As long as you have a need for gas/nuclear/coal backup, your solar/wind will ALWAYS be more expensive since it cannot replace gas/nuclear/coal.
  • impossible. (Score:3, Informative)

    by etash ( 1907284 ) on Thursday September 19, 2019 @11:22AM (#59212838)
    Idiots on Slashdot for almost two decades have been against solar and renewables. First they were saying that renewables will never be an alternative. Then they kept saying that they are way to expensive. Then they complained that they unfairly competing with coal and natural gas due to subsidies. Now what are they going to say ?

    How about starting the same cycle again by having them say "oh but what about batteries? they are never going to be good enough for electricity storage."

    Fucking imbeciles and oil company shills.
    • by skids ( 119237 )

      Now what are they going to say ?

      ...that the projects won't make money because confinement fusion will eat their lunch before they break even, probably.

      No renewable investor has lost that bet yet though.

      That's assuming they have the capacity to change their tune, though. They'll probably just stick to the Donald Quixote line about windmills making them dizzy.

    • Re:impossible. (Score:4, Informative)

      by LynnwoodRooster ( 966895 ) on Thursday September 19, 2019 @01:17PM (#59213326) Journal
      Natgas and nuclear don't need a backup energy source for when the sun isn't shining or the wind is not blowing; wind and solar do. Do you count the cost of having the other installed non-solar/wind capacity there as part of the cost of wind/solar? Because you should - wind and solar aren't viable without a backup dispatchable source.
  • The entire intent of this kind of subsidy is to get a preferred industry on its feet and then to reduce subsidies so that the most efficient and higher quality companies in the industry survive.

    UNLESS the goal isn't just to start an industry, but to make massive nationwide change to power generation. If that's the case, then keep subsidizing, but prepare to reduce funding to non-preferred power sources to match along the way.

    Note: "Intent" changes with whomever is in charge at the moment.

  • by PPH ( 736903 ) on Thursday September 19, 2019 @11:27AM (#59212864)

    ... the energy storage needed for night and/or windless days? Because the solar/wind folks have treated this as an externality. The cost of which will be borne by someone else. In the real world, power producers contract to supply power for a price during a defined period of time. If they can't generate, it's up to them to go on the spot market and buy reserves to make good on the contract. At whatever price the market will bear. If you don't do this, you are still being subsidized.

    • No, because this is subject to local conditions, and unlike generation equipment costs on the global market, you can't talk about local conditions until you specify the place you're interested in. Which you haven't.
      • by PPH ( 736903 )

        You are the one with the solar panels. So the local conditions should be your problem. For renewables to be taken seriously, you need to provide the MWh you contracted for. Either from your own facilities or from a thermal or hydroelectric plant.

        Some utilities might establish a renewable generation contract where they will handle the reserve issue. For a fee. But that fee will be based on connected capacity. So you could easily go in the hole, so to speak, if you don't produce enough.

        • ? I'm not "the one with the solar panels", that would usually be our utilities. They package energy from multiple sources. This brings economies of scale, among other things.
    • by Ichijo ( 607641 )

      How much storage is "needed"? In other words, how much electrical demand is perfectly price-inelastic?

      • I would think a 24 hour backup should be sufficient for most situations, for a given region. So take the installed capacity, multiply by 3 (for capacity factor), then multiply by 24 (for the number of hours you need), then multiply by 1.5 (for losses when converting back to energy). That's how much backup you need for every MWh of installed generation capacity.
    • > Does this include ... the energy storage needed for night and/or windless days?

      It's true, storage adds costs and which isn't factored in post.

      However, solar and wind can be used without storage. It means less usage of coal and natural gas during that time.

      I don't take the article to mean coal and natural gas are gone (unfortunately).

      • by PPH ( 736903 )

        However, solar and wind can be used without storage.

        No, they can't. It's just that someone else is paying for it. Or contracting for the spinning reserve needed should a cloud pass in front of the solar panels.

        I don't take the article to mean coal and natural gas are gone (unfortunately).

        Of course not. What do you think they use for the reserve?

      • by skids ( 119237 )

        It's true, storage adds costs and which isn't factored in post.

        Storage is not entirely downside. Battery storage provides superior quality frequency regulation to spinning reserves, which is a service industry pays for already.

        • Do the math about the amount of battery to actually be grid-level storage, rather than a few-second "hold up" so you can equalize AC frequencies. Los Angeles County alone used 67,800 GWh [ca.gov] in 2018. That's 185 GWh per day - or 7.7 GW per hour. The entire State of CA is more than an order of magnitude beyond that - and that's just California.

          That "massive" battery installed in South Australia for grid stabilization? It was 100 MW [pv-magazine.com]. It would run Los Angeles County for about 46 seconds. Do the math about how

    • Does this include the energy storage needed for night and/or windless days?

      Why would it? There's plenty of room to ramp up before that starts being an issue. The cost of energy storage is a potential future problem for when solar/wind becomes the dominant mode of energy production, but it's not a cost that we are facing today.

    • by Nidi62 ( 1525137 )

      ... the energy storage needed for night and/or windless days? Because the solar/wind folks have treated this as an externality.

      And the oil industry treats the cost of propping up autocrats and endless conflict in the Middle East as externalities.

    • You simply spread your wind farms far enough ... wow that was so easy.

      At night you don't need solar power, as the grid load is in many countries below 50% of peak during daytime. Wow that also was easy.

      And no, no one is setting on wind and solar alone. It can not work everyone knows that. So germany uses biogas in a great deal (and is increasing) and obviously for load balancing you need pumped storage and/or intelligent grids.

      The cost of which will be borne by someone else.
      See below ...

      If they can't genera

    • It doesn't need to (Score:5, Insightful)

      by rsilvergun ( 571051 ) on Thursday September 19, 2019 @01:02PM (#59213256)
      63% of our energy is from Fossil Fuels [eia.gov]. Just cutting that in half would be world changing.

      The goal isn't just to Shave the Whales. We want energy independence so we can stop caring when Saudi Arabia and Yemen get into it with Iran selling weapons. If we go to war with Iran to secure Saudi Arabia's oil supply it's going to cost trillions. That's money out of your pocket and mine that could have gone to roads, schools, or just plain stayed in our pockets. Not to mention all the dead American soldiers.
    • by chrysrobyn ( 106763 ) on Thursday September 19, 2019 @01:08PM (#59213278)

      Does this include the energy storage needed for night and/or windless days?

      You know full well this excludes energy storage.

      Part of the incredible power of renewables is that there is plentiful energy during some times. I remember 15 years ago when the first overnight cost of electricity in Texas went negative due to the overnight wind farms overproducing. Of course, a weakness is the lack of power during other times. During the plentiful times, there can actually reach negative cost of power. Those negative costs really change the landscape of the cost of energy. It's an inherent subsidy for anybody who knows how to shift their loads or who can store the power and deploy it another time. This subsidy will / has been doing the same thing as renewable power subsidies do, it will increase the economy of scale for energy storage and load shifting.

      There's a lot of R&D put into lithium batteries (as well as a wide variety of other chemistries), and a lot put into utility scale gravity storage (everything from water to trains) and even some air pressurized caverns. As we size the renewable portion of the grid up, there will be more and more times when the cost goes negative, and even more incentives to figure storage out.

  • by JustAnotherOldGuy ( 4145623 ) on Thursday September 19, 2019 @12:22PM (#59213106) Journal

    But what about 'clean coal'? Trump swore it was making a comeback.

    Maybe the new Space Force rockets will run on clean coal.

  • by VeryFluffyBunny ( 5037285 ) on Thursday September 19, 2019 @12:33PM (#59213144)

    ...hasn't outgrown its subsidies of around $325 - 600 billion per year, worldwide https://www.iea.org/newsroom/e... [iea.org]

    Imagine how much renewable energy we'd be generating & how much fuel & logistic efficiency savings we could make with that much subsidy.

  • No more need for any other dispatchable capacity available? No more need for gas, or "biomass", or coal or nuclear to provide energy when the solar and wind can't? If it can't stand on its own - then that is a subsidy (the backstop to provide power when it cannot) that is being overlooked. It's forcing a redundant power grid, and is an ADDITION to the dispatchable sources, not in replacement thereof...

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