{"id":17447,"date":"2018-03-27T14:01:45","date_gmt":"2018-03-27T18:01:45","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=17447"},"modified":"2018-03-29T17:49:56","modified_gmt":"2018-03-29T21:49:56","slug":"still-cheaper-than-coal-a-report-on-the-economics-of-solar-power-in-colorado","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2018\/03\/27\/still-cheaper-than-coal-a-report-on-the-economics-of-solar-power-in-colorado\/","title":{"rendered":"Still cheaper than coal \u2013 a report on the economics of solar power in Colorado"},"content":{"rendered":"<p><a href=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/03\/4183936782_6d9ba84ab4_z-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-17454\" src=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/03\/4183936782_6d9ba84ab4_z-1-300x225.jpg\" alt=\"\" width=\"300\" height=\"225\" srcset=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/03\/4183936782_6d9ba84ab4_z-1-300x225.jpg 300w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/03\/4183936782_6d9ba84ab4_z-1.jpg 640w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><em>By <a href=\"https:\/\/www.edf.org\/people\/rama-zakaria\">Rama Zakaria<\/a>, <a href=\"https:\/\/www.edf.org\/people\/graham-mccahan\">Graham McCahan<\/a><\/em><\/p>\n<p>A newly-updated report is shedding light on what President Trump\u2019s solar trade tariffs may mean for one state \u2013 and underscoring a tremendous opportunity to move forward toward clean energy, with all the benefits it can bring.<\/p>\n<p>Xcel Energy filed its <a href=\"https:\/\/www.dora.state.co.us\/pls\/efi\/EFI_Search_UI.search\">30-day bid report update<\/a> with the Colorado Public Utilities Commission on March 1. The update follows Xcel\u2019s filing at the end of last year, in response to an \u201c<a href=\"https:\/\/www.documentcloud.org\/documents\/4340162-Xcel-Solicitation-Report.html\">all-source solicitation<\/a>,\u201d as part of its Electric Resource Plan and its proposed Colorado Energy Plan.<\/p>\n<p><a href=\"https:\/\/www.xcelenergy.com\/staticfiles\/xe-responsive\/Company\/Rates%20&amp;%20Regulations\/Resource%20Plans\/CO-Energy-Plan-News-Release-August-2017.pdf\">Xcel\u2019s plan<\/a>\u00a0would shut down two units at the Comanche coal plant in Pueblo, Colorado, and replace the capacity with a mix of lower-carbon resources. Earlier results were\u00a0<a href=\"http:\/\/www.cleancooperative.com\/news\/new-wind-and-solar-power-in-colorado-is-now-cheaper-than-existing-coal-plants\">unprecedented<\/a>, with more than 80 percent of the bids coming from renewable energy and storage at incredibly cheap prices.<\/p>\n<p>Xcel then provided bidders an opportunity to refresh their bids following President Trump\u2019s final decision in the Suniva\/SolarWorld\u00a0<a href=\"http:\/\/fortune.com\/2018\/01\/22\/solar-trade-case-trump-says-yes-to-new-tariffs-that-target-china\/\">trade case<\/a>\u00a0in January, which imposed tariffs on imported solar equipment.<\/p>\n<p>The refreshed bids in Xcel\u2019s updated report show minimal change relative to last year\u2019s results and confirm that new wind and solar power in Colorado continues to be cheaper than existing coal plants \u2013 despite the trade tariffs.<!--more--><\/p>\n<p>According to the report, Xcel \u201creceived bid affirmation and refresh responses from all but one of the 400 plus bids.\u201d<\/p>\n<p>Of these responses:<\/p>\n<p>\u201c58 percent of the bids affirmed no change in pricing, 16 percent\u00a0 increased pricing, and 26 percent decreased pricing.\u201d<\/p>\n<p>The solar photovoltaic (PV) median bid price increased by only $1.5 per megawatt hour, and the median bid for solar PV with battery storage increased by $2.3 megawatts per hour \u2013 still the\u00a0<a href=\"https:\/\/www.nytimes.com\/2018\/02\/06\/opinion\/utility-embracing-wind-solar.html\">cheapest\u00a0\u00a0<\/a><a href=\"https:\/\/www.vox.com\/energy-and-environment\/2018\/1\/16\/16895594\/colorado-renewable-energy-future\">solar-plus-storage bids<\/a>\u00a0in the U.S. to date.<\/p>\n<p>Based on analysis by\u00a0<a href=\"https:\/\/www.carbontracker.org\/colorados-renewables-revolution\/\">Carbon Tracker<\/a>, this means that the median bid price for solar is lower than the operating cost of all existing coal units in Colorado, while the median solar plus storage bid is lower than roughly 70 percent of operating coal capacity.<\/p>\n<p>Federal renewable energy tax credits are likely buffering some of the solar trade tariff effects. While\u00a0<a href=\"https:\/\/www.lazard.com\/media\/450337\/lazard-levelized-cost-of-energy-version-110.pdf\">recent analyses<\/a>\u00a0show significant cost declines for renewable energy, with wind and solar becoming increasingly competitive with conventional generation even on an unsubsidized basis, the renewable tax credits are still a significant factor contributing to favorable wind and solar economics in the short-term and in the face of the Trump solar tariffs. That said, it\u2019s important to recognize that coal generation has enjoyed\u00a0<a href=\"https:\/\/blogs.edf.org\/energyexchange\/2017\/04\/10\/more-subsidies-than-you-think-influence-the-cost-of-electricity\/?_ga=2.214726033.745977056.1522075341-1109890475.1492057264\">state and federal incentives<\/a>\u00a0for a century, and continues to do so.\u00a0 <div class=\"simplePullQuote right\"><p>It\u2019s important to recognize that coal generation has enjoyed\u00a0state and federal incentives\u00a0for a century.<\/p>\n<\/div><\/p>\n<p>The tax credits are being phased down in the next few years, with the production tax credit for wind phasing out in 2019 and the investment tax credit for solar in 2021. So, it will be critical to act now to take advantage of those credits to deploy clean energy at lowest cost and secure the associated economic and public health benefits.<\/p>\n<p>Colorado is an example of this tremendous opportunity to move forward now to lock-in incredibly low-cost resources, with no fuel costs and therefore no medium- to long-term volatility or risk to consumers. The Xcel bids show that there is a lower-cost clean energy alternative to keeping the polluting Comanche units online in Pueblo, and it no longer makes sense to continue to operate and maintain these units at the expense of Colorado customers and Colorado air quality.<\/p>\n<p>There is even the potential for low-cost utility-scale, on-site solar to be used by Evraz Rocky Mountain Steel \u2013 a steel mill and the single largest manufacturer in Pueblo and\u00a0<a href=\"https:\/\/www.evrazna.com\/LocationsFacilities\/RockyMountainSteelMills\/RMSMRailMill\/tabid\/72\/Default.asp\">largest producer<\/a>\u00a0of premium rail in North America \u2013 to help cut costs and keep manufacturing jobs in Pueblo.<\/p>\n<p>[Tweet &#8220;Still cheaper than coal \u2013 a report on the economics of solar power in Colorado&#8221;]<\/p>\n<p>Evraz is Xcel\u2019s largest retail customer in Colorado, and the 175-200 megawatt Evraz solar project that the company is considering would provide a cost-effective option to meet Evraz\u2019s growing needs, help guarantee Evraz low and stable electricity rates in the future, and therefore help keep Evraz in Colorado.<\/p>\n<p>We are already witnessing some of the impacts of Trump\u2019s solar tariffs on jobs in some areas of the U.S., and the potential for these tariffs to stall American competitiveness and innovation \u2013 for instance, American solar company SunPower\u00a0<a href=\"http:\/\/thehill.com\/business-a-lobbying\/376066-us-solar-company-to-layoff-nearly-10-of-workforce-following-tariffs\">recently announced<\/a>\u00a0that it will lay off hundreds of workers, largely from its research and development and marketing positions.<\/p>\n<p>But the Xcel refresh bids in Colorado \u2013 a state blessed with high solar and wind potential \u2013 provide an important first look at what the solar tariffs mean for the\u00a0<a href=\"https:\/\/blogs.edf.org\/energyexchange\/2018\/01\/25\/trump-kills-solar-jobs-taxes-families-and-businesses-but-he-cant-kill-solar-competitiveness\/?_ga=2.218290207.745977056.1522075341-1109890475.1492057264\">competitiveness of clean energy<\/a>\u00a0in a state where clean energy conditions are favorable.<\/p>\n<p>In Colorado, it is clear that the advantages of clean energy for consumers and the local economy remain compelling. Despite the tariffs \u2013 and in the presence of renewable tax credits, rapid technological advances, and plummeting costs of solar and storage technologies \u2013 solar still outcompetes fossil fuels. It also helps lower costs to consumers and protects local manufacturing jobs.<\/p>\n<p>The state should act now to lock-in those benefits for the people of Colorado.<\/p>\n<p><em>Photo source: <a href=\"https:\/\/www.flickr.com\/photos\/davedugdale\/4183936782\">Flickr<\/a>\/solardave.com<\/em><\/p>\n<p><em>This post originally appeared on our <a href=\"http:\/\/blogs.edf.org\/climate411\/2018\/03\/26\/still-cheaper-than-coal-a-report-on-the-economics-of-solar-power-in-colorado\/\">Climate 411<\/a> blog.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Rama Zakaria, Graham McCahan A newly-updated report is shedding light on what President Trump\u2019s solar trade tariffs may mean for one state \u2013 and underscoring a tremendous opportunity to move forward toward clean energy, with all the benefits it can bring. Xcel Energy filed its 30-day bid report update with the Colorado Public Utilities &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42996,34795,100446,203],"tags":[],"coauthors":[],"class_list":["post-17447","post","type-post","status-publish","format-standard","hentry","category-smart-power","category-colorado","category-energy-equity","category-solar-energy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Still cheaper than coal \u2013 a report on the economics of solar power in Colorado - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2018\/03\/27\/still-cheaper-than-coal-a-report-on-the-economics-of-solar-power-in-colorado\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Still cheaper than coal \u2013 a report on the economics of solar power in Colorado - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"By Rama Zakaria, Graham McCahan A newly-updated report is shedding light on what President Trump\u2019s solar trade tariffs may mean for one state \u2013 and underscoring a tremendous opportunity to move forward toward clean energy, with all the benefits it can bring. 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