The Big Short(fall): Colorado’s Upcoming Power Plant Closures and Planned Replacements

By Ethan Cornell* Introduction The data summarizing planned generation closures in Colorado signals a rapid and profound infrastructural transformation. The schedule details the planned retirement of 10 major coal-fired units between 2025 and 2031, collectively representing a loss of nearly 4,200 megawatts (MW) of nameplate capacity. The primary policy question this raises is whether the […]

Fudging the Numbers: How Colorado Policymakers Mislead on Energy Costs

An increasingly common theme of the energy policy debate here in Colorado, particularly among renewables advocates, is the trumpeting of cost statistics purporting to show the affordability benefits of transitioning to wind and solar over legacy fossil fuel plants. Take, for instance, a recent statement made by Governor Jared Polis during a gubernatorial debate late […]

Anywhere But Here: The Biden Admin Courts Dictators to Pump More Oil

Rebuffing President Biden’s past hat-in-hand requests for the region to boost production, the 23-member OPEC+ announced this week their intention to slash output by 2 million barrels of oil a day. The move immediately drew the ire of the Biden administration, who is all too aware of what a drastic cut to the global oil […]

The Limits of Wind Power

Environmentalists advocate wind power as one of the main alternatives to fossil fuels, claiming that it is both cost effective and low in carbon emissions. This study seeks to evaluate these claims.

Existing estimates of the life-cycle emissions from wind turbines range from 5 to 100 grams of CO2 equivalent per kilowatt hour of electricity produced. This very wide range is explained by differ- ences in what was included in each analysis, and the proportion of electricity generated by wind. The low CO2 emissions estimates are only possible at low levels of installed wind capacity, and even then they typically ignore the large proportion of associated emissions that come from the need for backup power sources (“spinning reserves”).

Wind blows at speeds that vary considerably, leading to wide variations in power output at different times and in different locations. To address this variability, power supply companies must install backup capacity, which kicks in when demand exceeds supply from the wind turbines; failure to do so will adversely affect grid reliability. The need for this backup capacity significantly increases the cost of producing power from wind. Since backup power in most cases comes from fossil fuel generators, this effectively limits the carbon-reducing potential of new wind capacity.

The extent to which CO2 emissions can be reduced by using wind power ultimately depends on the specific characteristics of an existing power grid and the amount of additional wind-induced vari- ability risk the grid operator will tolerate. A conservative grid operator can achieve CO2 emissions reduction via increased wind power of approximately 18g of CO2 equivalent/kWh, or about 3.6% of total emissions from electricity generation.

The analysis reported in this study indicates that 20% would be the extreme upper limit for wind penetration. At this level the CO2 emissions reduction is 90g of CO2 equivalent/kWh, or about 18% of total emissions from electricity generation. Using wind to reduce CO2 to this level costs $150 per metric ton (i.e. 1,000 kg, or 2,200 lbs) of CO2 reduced.

EPA report is blessing in disguise for fracking advocates

by Donovan Schafer In a recent report, the EPA linked groundwater contamination in Pavillion, Wyoming, to the controversial practice of hydraulic fracturing (“fracking”) used to extract oil and gas. You can almost hear the collective “Hooray!” from anti-fracking advocates. But the actual data in the EPA report make it clear that fracking is safe. The […]

Preview of October 26 PUC Hearing on HB 1365: A New Plan

Archive Preview of October 25 PUC Hearing Review of October 25 PUC Hearing Preview of October 26 PUC Hearing: A New Plan Yesterday at 5pm, Xcel filed a new plan to meet HB 1365. The utility’s original plan had been rejected by the PUC because it would have switched fuels at a 351 megawatt Denver […]

Primer for October 25 PUC Hearing on HB 1365

A Quick Review of HB 1365… HB 1365, the Clean Air Clean Jobs Act, mandates that Xcel file a plan by August 15 2010 that would: be implemented by December 31, 2017; meet “reasonably foreseeable” state and federal air quality regulations; achieve at least 70% reductions in nitrogen oxides emissions from at least 900 megawatts […]

Colorado’s Great Green Deception

Colorado’s Great Green Deception: If HB 1001 Seems too Good to Be True, It’s Because It Is By William Yeatman and Amy Oliver Cooke Last March, Colorado Governor Bill Ritter (D) signed HB 1001, a mandate requiring investor- owned utilities to generate 30 percent of their electricity sales from renewable energy sources by 2020. The […]

Markets Should Drive Colorado's Energy Industry, Not Social Values

By William Yeatman and Amy Oliver Cooke Xcel Energy is getting a lot of grief over its new “tiered” rate increase–a.k.a., the air-conditioner tax–but the criticism is somewhat misplaced. It’s impossible to assign complete responsibility to Xcel for this ham-handed energy fee, because in reality the state is calling the shots in an effort to […]