The project, called RE< C strives to get there. Given current trends, it may not get there for a while. Of course sunlight, geothermal heat, and wind are free, but can a solar or wind plant be built for less than the cost of a coal plant, on a per kW basis? Coal plants, which are 500 - 10,000 times larger than a wind turbine or solar panel, or geothermal plant, have this little advantage called "scale". There is another little advantage called "they run all the time". Wind and solar plants do not. At this time, renewables simply aren't cost effective without significant incentives, and possibly a carbon tax
Although the numbers below are a few years old (source: CEC), I think the relative costs haven't changed much (price of coal has gone up, but so has the cost of wind turbines and silicon)
Technology | Cost of Electricity(2003 cents/kWh) |
Hydroelectric | 0.25 to 2.7 |
Coal | 1.8 to 2.0 |
Wind | 4.6 |
Natural Gas | 5.2 to 15.9 |
Geothermal | 6.7 to 7.6 |
Nuclear | 8.3 to 11.1 |
Solar | 13.5 to 42.7 |
Skepticism aside, I would LOVE IT if GOOG could reduce the cost of wind by half, geothermal by 3x, and solar by 10X. If I see that happening, I'll buy a share or two of stock, which is all I can afford with my PG&E bill being what it is these days.
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