Energy, Your Wallet, and the “Big Green Lie”

Categories : Financial, News
November 16, 2022

“The coal industry is evil. Fracking must be stopped. Oil companies are ripping us off. Carbon-based energy is the bane of man’s existence, and will soon cause the death of us all. We need renewable energy sources to save the world. We need them RIGHT NOW.” Blah, blah, blah. Lather, rinse, repeat. Underlying the push for a “Green New Deal” is a deep-seated hatred of capitalism. Most of us cannot grasp this sentiment, understanding that capitalism is responsible for elevating the entire global standard of living. Instead, today’s Socialist leaning “leaders” remain convinced, like many of their predecessors, that all they need is the “right people” to implement their “Progressive” policies.

History tells us that Socialism fails every time it is tried. Are oil and coal bashing the only or even the best, examples of socialism’s failures? Hardly! Remember failed automobiles like the Yugo, or the Russian Lada? An old joke about the Lada goes like this: “What’s the difference between a golf ball and a Lada?” Answer: “You can drive a golf ball 300 yards!” Bada-Boom!

Back to renewables and the “Big Green Lie.” We are told that every family will save a minimum of $500 annually using renewables because wind and solar are “less expensive to produce.” For an excellent, comprehensive analysis of the cost of various forms of energy, we strongly recommend the article, The Real Cost of Wind and Solar, at Search on “real cost” and it pops up. Hold on to your wallets if these people get their way.

Problematic in the “green” argument is the computation of costs for electric power generation versus “fossil fuels.” Cost estimates we are force-fed every day assume 100% efficiency, which cannot be realized. Solar panels experience night, wind turbines are stationary during calm weather conditions, and both are therefore inefficient. Coal and natural gas run 24 hours per day, assuming supply lines remain open. Truly efficient solar panels would need to be constantly repositioned to face directly into the sun (while the sun is up). Because of the obvious expense of constructing the needed mechanisms, most solar panels are stationary, further reducing efficiency (and increasing costs).

Downtime, either from lack of sun or wind, means that overall demand must be fulfilled from other sources. For every kilowatt of renewable power generation that goes offline for extended periods, a conventional backup generator must also be available to avoid blackouts. Duplicative construction costs further increase the actual unit costs of renewable energy sources.

For a glimpse into our future, simply watch energy-starved European households shiver during the coming winter. The only difference between them and us is their head start toward the fallacy of a “Green New Deal.”

Van Wie Financial is fee-only. For a reason.