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Wait so the plan to reduce inflation is to subsidize expensive forms of energy? Don't subsidies increase demand and isn't the cause of inflation too much deman
by gotoeleven 3y ago
Wait so the plan to reduce inflation is to subsidize expensive forms of energy? Don't subsidies increase demand and isn't the cause of inflation too much demand? How is this supposed to reduce inflation?
- bryanlarsen 3y agoSolar and wind energy are essentially zero marginal cost energy after a high initial cost. Zero marginal cost energy sounds like a fabulous way to reduce inflation.
- gotoeleven 3y agoAre there any examples anywhere of green energy programs making energy cheaper? Not even the biggest green energy proponents claim this is going to make energy cheaper, afaik. Are we still waiting for this 'zero marginal cost' energy to kick in?
- mullingitover 3y agoUtility-scale PV and wind are already cheaper than coal and prices are still falling, so pretty much every new green energy installation is an example.
- bryanlarsen 3y agoIt is a very common claim. So For example the wind energy "subsidy" in the UK recently went negative. There is debate whether a 100% renewable grid will be cheaoer than a fossil fuel powered grid due to the company cost of storage, but no doubt that a grid that is 30-70% renewable powered will provide cheaper energy than one that has no renewables.
- readthenotes1 3y agoThey cost a little and then you have to retire the systems. My understanding is that there's not a zero marginal cost at that point. I am not sure how much it cost per kilowatt hour compared to decommissioning a nuclear power plant...
- chrismcb 3y agoThat isn't true. Maintenance isn't free. And over the lifetime the total cost may be less, out is probably higher than most people expect
- bryanlarsen 3y agoI said essentially zero marginal cost, not actually zero.