The Plague of Renewable Portfolio Standards

There are few commodities that are more perishable than electricity.  If it is not consumed at the moment it is produced, there are not very good options.  Yes, it is possible to store electricity via a reversible hydroelectric scheme called pumped storage.  It can also be stored in rechargeable batteries.  Both options are exorbitantly expensive.  With eggs or milk, cold storage for a period is feasible, and if that doesn’t work, there are powdered eggs and cheese.  Electricity is produced by generating plants that are capital-intensive. At a modern natural gas generating plant, two thirds of the cost is capital, and one third is fuel.  If you idle the plant because at a particular time there is no market for the electricity, two thirds of your costs keep on running.  At a nuclear plant, fuel is extremely cheap.  Nearly all the cost is capital or staffing, and nearly all the costs...(Read Full Article)
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