Gyrations of the international oil market caused by the war in Iran and blockade of the Strait of Hormuz reinforces the value of renewable energy sources. The wind and the sun are free fuels delivered directly to power plants without any intermediaries to interfere.
Wind power and solar power remain the cheapest sources of electricity, even after Congress eliminated federal tax credits. In part, that’s because the price of their fuel, zero, is not subject to the whims of international politics. And because the sun and the wind don’t depend on anyone mining or drilling, shipping or piping, they save on the associated labor and material expenses.
After a wind farm or solar project is constructed, the fuel costs are forever zero. It’s exemplified by the slogan of a local solar company: “Free fuel for the next 4 billion years” (the expected life of the sun).
It’s also spurred what at first seemed like an internet meme, free electricity in Australia! Sure enough, some Australian utilities have adopted rate programs that allow customers free electricity during the middle of the day. That owes to the widespread adoption of rooftop solar across sunny Australia, with the encouragement for consumers to use up the mid-day surplus.
That’s not to say there aren’t cost challenges for wind and solar. Construction costs are subject to the same inflationary pressures from tariffs and geopolitical circumstances that ripple throughout the entire energy sector for anyone using steel, copper or aluminum for extracting fossil fuels or constructing power plants.
The Trump administration, with its infamously hostile attitude toward renewable energy, is doing all it can to stymie wind and solar projects. Will Toor, director of the Colorado Energy Office, described some of those obstacles last week in Durango. Wind farms need approval by the Department of Defense and the Federal Aviation Administration to reasonably ensure they don’t interfere with radar. But when extensive delays are implemented for projects in remote parts of the Great Plains, hundreds of miles from nearby airports or military bases, it’s more an issue of political vindictiveness than real concern.
Similarly, the Department of Interior has directed its agencies, including the Bureau of Land Management and Bureau of Indian Affairs, to slow-walk or deny necessary approvals for power line rights-of-way and environmental studies for solar projects that involve public or tribal lands.
The cost advantages of renewable energy are inexorable. La Plata Electric Association members are now reaping the benefits of a greater pool of renewable energy in LPEA’s power supply mix. LPEA notes that as of its April 1 exit from its prior power supply contract with Tri-State, it has reduced its energy costs by more than 20% and also upped its percentage of renewable energy sources from 30% to 50%. Holding the line on energy costs gives LPEA more flexibility to absorb the inflationary impacts from increased labor and equipment expenses without needing to pass along those higher costs.
On April 23, LPEA is hosting a community event – CommunityPower X: Regional Energy Forum – featuring two nearby rural electric cooperatives that have years’ more experience navigating the new era of diverse, renewable and local power supplies. Kit Carson Electric Cooperative in Taos left Tri-State 10 years ago and has since constructed enough local solar projects to supply 100% of its daytime energy needs. It will be interesting to hear how that impacts the bottom line for Kit Carson’s members. Similarly, Delta-Montrose Electric Association exited from Tri-State several years ago and is also benefiting from newly constructed local solar projects.
Information and reservations for event are available at LPEA’s website.
Mark Pearson is Executive Director at San Juan Citizens Alliance. Reach him at mark@sanjuancitizens.org.
