We often hear or read claims that green energy is the way to go. One would swear all we need do is load up with solar panels and wind farms and all will be well.
However, in a recent article by Kenneth P. Green and Taylor Jackson for the Fraser Institute it appears green energy policies might not be all they're cracked up to be.
They tell us:
"While switching to renewable electric generation is always cast against the backdrop of protecting the environment and reducing CO2 emissions, the policies that stimulate renewables have undercut relatively clean sources of electricity like natural gas. In fact, Germany actually increased its consumption of lignite coal in 2013 to levels not seen since 1990. Although this is not entirely shocking; something has to keep the lights on when it’s not sunny or windy, and coal happens to be the cheapest option.
"Most troubling, though, is that energy in Germany is becoming a luxury good, as those at lower income levels simply can’t afford to power their lights, refrigerators and other energy-powered household comforts that we take for granted. According to one estimate, more than 300,000 German households have their power cut off every year because of an inability to pay electricity bills.
"But Canadians need to look no further than Ontario to see how renewables can affect electricity prices. In 2009, Ontario launched its Green Energy Act, which subsidises the use of renewable energy by providing long-term guarantees at above market prices for renewable producers (wind farms, for example) through its Feed-in-Tariff system.
"The results? Since 2004, the total annual power cost in Ontario has risen by more than 50 per cent. And while wind and solar energy provide just under four per cent of Ontario’s power, they account for 20 per cent of the average commodity cost."
Sometimes we need to look before we leap.
