the funny thing about the grid-protection-from-foreign-adversaries discourse is that you could pay 15 back woods gun nuts to shoot a few select MPTs and cause absolute mayhem
@xiaowang1984@SlBrandin@duncancampbell does it make a difference if it’s a higher PPA price vs. lower PPA price + pass through of system upgrades on a separate line of the bill? in theory load is paying the same right? maybe there’s a system planning dynamic I’m missing here
this is an under appreciated dynamic of energy policy and power market structure. all roads lead to the load meter - some of them just take the long way around.
@xiaowang1984@duncancampbell I hate to break it to you but load always pays. It’s most efficient for it to be direct so consumers have maximum ability to manage those costs as they see fit
@SolarInMASS gotcha - most carbon pricing frameworks assume an escalation in the marginal cost of new emissions - are you suggesting something different?
if you follow the line of reasoning for most of the discourse on both sides of this debate, you end up back at the question of how you should price carbon emissions, and if the cost is high enough to justify the challenging aspects of deploying lots of intermittent resources
“If solar and wind are the most affordable and fastest to build resources, why do they need tax credits?” A reporter asked me this fair question yesterday. Here's the steelman case, in my view:
1) Market failure correction: Social value of solar and wind (e.g. reduced fuel price volatility, CO2 emissions, air pollution) exceeds private market value; tax credits help internalize these public benefits
2) Offsetting non-price barriers: Solar and wind face significant non-price barriers (e.g. permitting delays, interconnection challenges, transmission constraints) that favor incumbent resources; tax credits help counterbalance
3) Energy security: Solar and wind don’t rely on globally traded fuels, providing insulation from potential actions of adversarial governments while enabling lower-cost fuel export to allies
4) Supporting rapid load growth: With electricity demand rising quickly, tax credits help scale up new generation faster and mitigate backsliding into higher-emission resources
5) Accelerating deployment: Even in regions where solar and wind are cost-competitive, the pace of market-driven adoption may not align with public objectives; tax incentives help close the gap
6) Offsetting tariff impacts: Tariffs have raised costs of a variety of input materials and grid equipment; tax credits help offset these added burdens and keep projects economically viable
7) Addressing uneven economics: While solar and wind are the most affordable new energy sources in many markets, this isn’t universally true, especially in regions with weaker RE resources
8) Consistent w/ historical precedent: Nearly all major energy sources in US history have received federal subsidies; supporting renewables continues that tradition in service of modern priorities
but carbon pricing is off the table politically, so we’ve inserted subsidies and a whole new language surrounding pros/cons of renewables and IMO most of it is a giant smoke screen to avoid mentioning GW or carbon
it’s not honestly about whether solar/wind are cheapest to deploy. in some spots of the country they are. in other parts of the country you need big subsidies (higher implied price on carbon)