Wind Energy FAQs: Renewables & Power Prices 2005-2020
Critics claim that more renewable energy will result in higher prices for hard-pressed electricity consumers. To check this, it is necessary to consider how renewable energy uptake, and power prices, have trended in recent years. First, renewable energy..
Renewable Energy. Electricity generation using renewables has expanded rapidly since 2005. Over the period, their market share has more than doubled from 9% to 19%;
If renewable energy was resulting in higher prices, one would expect average electricity prices to have risen over the period in question.
Power prices. The Energy Information Administration publishes monthly data on national electricity prices. To ensure comparability, we inflation-adjusted all prices to May 2020 using CPI information from the Bureau of Labor Statistics, and include the chart as follows;
The chart demonstrates that, on an inflation adjusted basis, power prices have been remarkably stable over the last 15 years: indeed the 2019 year-average power price (10.61 cents per kilowatt hour) is actually slightly less than the 2005 average of 10.66 c/kWh.
So much for rising prices due to renewables.