Climate 411

Groundbreaking Study Shows New Coal Plants are Uneconomic in 97 Percent of US Counties

By: Ferit Ucar

At Environmental Defense Fund (EDF), we understand that market forces can drive either a healthy environment – or harmful pollution. I recently wrote about how generating electricity often creates pollution, which comes with environmental and health costs that are usually not paid for by the polluters. That’s why EDF works to identify and correct market failures, like the failure to understand – as well as account for – all of the costs pollution imposes on society.

The Energy Institute at the University of Texas at Austin (UT) just released a useful tool in that pursuit: a studythat aims to capture the full cost of new electric power generation – including environmental and public health costs – on a county-by-county basis in the United States. The study evolves traditional ways of estimating new generation costs by 1) incorporating pollution costs, and 2) breaking data down to the county level.

The results show economics are leading the U.S. to a cleaner energy economy, in which there is no role for new coal plants. Let’s break it down.

Enhancing the levelized cost method

The Levelized Cost Of Electricity (LCOE) method is commonly used to compute the costs of different power sources – including fossil fuels and renewables – on a comparable basis. The LCOE, expressed on a dollar per kilowatt-hour (kWh) basis, is the estimated amount of money it takes for a particular electricity generation technology to produce a kWh of electricity over its expected lifetime.

In its conventional form, the LCOE method does not take into account environmental and public health costs – costs external to electricity generation but caused by it. It also does not show the variation in costs of building and operating identical power plants across different geographies. The study provides an improved method that addresses these limitations. The study also factors in siting challenges – like water availability and access to fuel – that prevent certain plant types from being built in a given county.

The UT study presents results in a map format, which facilitates cost comparisons by fuel source, technology, and location. The study team released interactive maps that show the cheapest technology by county, as well as calculators that enable users to compare costs for different scenarios.

Key findings

The following U.S. map shows the least-cost technology when factoring in siting limitations, and environmental and public health costs. The key displays the number of counties in which each power technology is the least-cost option.

map-1

The analysis shows:

  • Wind is the least-cost option in the most number of counties.
  • Coal plants are never the least-cost option.
  • Natural gas combined cycle (NGCC) plants are the least-cost option in counties where the wind isn’t as strong.
  • Utility-scale solar photovoltaic (PV) plants are the least-cost option in counties where it’s particularly sunny and/or there is a lack of cooling water availability, which is needed for thermal generation like coal.
  • When a county faces siting challenges that prevent other technologies from being built, residential solar PV plants (like rooftop solar) are the least-cost option. Put another way, rooftop solar is a viable option in every county; other power sources are not.

If you remove the environmental and public health costs from the analysis, the map looks different:

map-2

Even without accounting for the environmental and public health costs, wind remains the least-cost option in over 1,000 counties – that’s about one third of U.S. counties. And solar appears on the map nearly five times as much as coal.

Caveats

Although the study presents an improved way to measure the costs of electricity generation, we should acknowledge its limitations. It does not:

  • Remove the subsidies received by coal and natural gas during the exploration and extraction process, which effectively make fossil-fuel plants appear less costly than they actually are.
  • Account for the uncertainty of future fuel prices and capacity factors for fossil fuel and nuclear plants.
  • Demonstrate the environmental and public health benefits of retiring an existing fossil-fuel plant. As the study states, if emission rates from existing (rather than new) power plants were used, the public health costs would, on average, be 10 times higher.
  • Factor in the costs associated with managing the variability in wind and solar’s generation output.
  • Model the implications of the federal Production Tax Credits and Investment Tax Credits for renewable generation technologies, as well as subsidies at the state or local level, which affect investment decisions. (The calculators do allow changes to capital cost assumptions; so therefore, these could be factored in).
  • Consider economic factors other than cost – like revenue – that also affect investment decisions.
  • Account for the high-level environmental damage risks associated with electricity generation from nuclear, natural gas, and coal as a result of incidents like Chernobyl and Fukushima, Aliso Canyon, and Dan River coal ash spill that cause massive, long-term, acute, and dispersed chronic harm.

    The Energy Institute study clearly shows the economic viability of wind and increasing prospects for solar.

The Energy Institute study clearly shows the economic viability of wind and increasing prospects for solar. Moreover, it provides policymakers and the public with important information on the full cost of electricity for new power sources – including the environmental and public health costs such as asthma attacks, premature death, and lung damage resulting from fossil-fuel pollution.

When pollution costs are accounted for, as the UT study shows, coal power plants are not the lowest-cost electricity generation technology anywhere. Even without including environmental and health costs and renewables subsidies, and despite the fact extraction of coal remains subsidized, new coal plants are still not economic in 97 percent of U.S. counties. As we work to fix outdated rules, we know that market forces are helping to clear the way for clean energy progress and cleaner air.

This post originally appeared on our Energy Exchange blog.

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What would it mean for Los Angeles to go 100% renewable?

By Irene Burga, Tom Graff Fellow for the Oil and Gas Program

10182500174_6070b2f074_kThe Los Angeles City Council recently passed a unanimous resolution requiring Los Angeles Department of Water and Power – the largest municipally-owned utility in the country — to study how the city can achieve a 100% clean energy future. With help from research partners, including academic institutions, the U.S. Department of Energy, and environmental and consumer groups, the study has the potential to become a foundational roadmap for running the utility on only clean and renewable energy.

California currently has a goal to reduce greenhouse gas emissions 40% below 1990 levels by 2030, with half of the state’s energy supply powered by renewable electricity by 2030. To achieve these targets, it is imperative for the state to look seriously at how to get off of fossil fuel dependency for our energy needs. Utilities and cities can be the key to reaching those climate goals. Read More »

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Clean Energy: An Emerging Path for Latino Communities

chciBy: Andy Vargas, EDF Congressional Hispanic Caucus Institute (CHCI) Public Policy Fellow

Hispanic Heritage Month is in full swing! It has also been a welcome way to kick off my placement with Environmental Defense Fund (EDF) as a Congressional Hispanic Caucus Institute (CHCI) Public Policy Fellow. Each year, CHCI marks Hispanic Heritage Month with a Public Policy Conference elevating the issues most important to Latino communities. This year, I had the pleasure of representing both CHCI and EDF, introducing a panel on an emerging and critical topic for Latinos: clean energy.

Clean energy is key to protecting Latino communities from disproportionate impacts of climate change and pollution. At last week’s conference, the National Hispanic Leadership Agenda (NHLA) highlighted that half the U.S. Latino population currently lives in the country’s most polluted cities. NHLA also noted that asthma and chronic obstructive pulmonary disease are more prevalent in inner city Latino communities near carbon-producing power plants.

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Eastside Sol Celebrates Community, Culture, and Clean Energy in Los Angeles

ess-2016-dancing-crowdBy: Luis Gutierrez, Senior Associate, Leadership for Urban Renewal Network (LURN) and Jorge Madrid, CA Campaign Director, Environmental Defense Fund (EDF)

It’s a warm, sunny day in August at the iconic Mariachi Plaza in Boyle Heights, California. More than 400 local residents have come together to dance to the classic tunes of Selena and the cumbia-rock fusion of El Conjunto Nueva Ola – the entire stage powered by solar. They’re enjoying delicious vegan treats, participating in a live mural art project, and screen printing their own reusable tote bags. Many are collecting free shade trees to plant at home, learning about bicycle safety and receiving free helmets, and discovering information about a new vehicle trade-in program that allows Californians to swap out their older vehicles for a new or used electric car. So what exactly is this celebration of music, art, culture, and clean energy? It’s Eastside Sol.

Event organizers Jorge Madrid and Luis Gutierrez reflect on the origins of Eastside Sol, its driving principles, and what’s in store for the future.

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How One Utility Is Changing the Clean Energy Business in Brooklyn and Queens

A photo by Alexander Rotker. unsplash.com/photos/-sQ4FsomXEsBy Gabriela B. Zayas del Rio, Tom Graff Diversity Fellow, Clean Energy

The system for supplying electricity in the U.S. was premised on the assumption that utilities would make evermore electricity to sell to customers. But, the global need to reduce carbon emissions from traditional power generation, along with the emergence of distributed energy resources – small, grid-connected devices, like rooftop solar and energy storage – have disrupted demand for electricity produced from traditional power plants.

In May, the New York State Public Service Commission introduced a new way to pay the state’s utilities, one where utilities are compensated not just based on how much electricity they produce, but also for producing environmental benefits aligned with the public good. This approach aligns with Reforming the Energy Vision (REV) – New York’s official plan to make its electric grid cleaner, more efficient, and affordable – and comes at a time of unparalleled population growth in New York. Read More »

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California’s Communities Demand Strong Methane Rules and Regulators Listen

By Irene Burga, Tom Graff Fellow for the Oil and Gas Program

Last month, lifelong Kern County, California resident Felipa Trujillo discussed the health impacts her community, located near oil and gas operations, has experienced. “It’s the most contaminated place in the country. I have witnessed many children getting cancer and asthma, and would like to leave a positive future for my grandkids.”

Trujillo was one of over twenty witnesses that appeared last month before the California Air Resources Board (CARB) to testify on the need for strong statewide rules to reduce methane pollution from the oil and gas industry. During the meeting, Board members heard about the importance of the rules from many powerful witnesses, ranging from concerned mothers and fathers, impacted community members overburdened by poor air quality, nurses who consistently treat asthma patients, industry experts, and air district agents from throughout California.

Several Porter Ranch residents testified on what it was like to endure one of the worst methane leaks in U.S. history right in their backyard. “A month prior [to the Aliso Canyon leak being reported] my daughter Emma, 22 months at the time, began showing signs of asthma. Two months after the gas leak was reported, my daughters were diagnosed with acute exacerbation of asthma,” described Porter Ranch resident, Jaqueline Shroeder, calling on the Board to take swift action in approving strong rules. Read More »

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