Solar Power now Cheaper than New Nuclear in NC
Solar Power now Cheaper than New Nuclear in NC
Former Duke chancellor, economist cites “historic crossover” . says
solar costs keep dropping as nuclear costs climb – and that utilities
should stop rejecting solar
DURHAM, NC – Solar electricity has become cheaper than juice from new
nuclear power plants in North Carolina, and will be far less expensive
before nukes could be built. That’s according to a major new report by
the former chancellor of Duke University and emeritus chair of its
economics department, who also said power companies are rejecting
solar energy that’s priced below what new nuclear power would cost.
Moreover, he said, nuclear utilities are seeking additional, massive
public subsidies and additional transfer of financial risks to
electricity customers and taxpayers.
“North Carolina should be leading, not lagging, in the transition to
clean energy,” Dr. John Blackburn said during a press briefing today.
“We call on Governor Perdue and state agencies to see that a very
important turning point has been reached, and act accordingly.” He
explained that the fast-growing worldwide solar industry is poised to
bring thousands of manufacturing and installation jobs to North
Carolina if the utilities will stop impeding its development.
Clean energy proponents have long awaited the day when solar and
nuclear prices cross. Solar photovoltaic and hot water system costs
have fallen steadily for years, and are projected to fall even more
over the next 10 years due to manufacturing and installation advances.
Meanwhile, design problems and rising cost estimates have led to
delays and cancellations of U.S. nuclear projects.
The report explains that states with open competition for electricity
sales are rejecting the nuclear gamble in favor of the combined
economic and environmental benefits of solar, wind, cogeneration and
energy efficiency; at least 20 states are ahead of North Carolina in
developing clean energy. By contrast, the report shows, states with
monopoly power markets are the ones still proposing to build new
nuclear plants – with each project absorbing billions of public
dollars.
The emeritus professor produced an “apples to apples” cost comparison,
net of incentives for both technologies, based on interviews with
solar installers across the state and published reports of solar
trends and cost estimates to build nuclear plants. His report includes
“rooftop” solar photovoltaic systems for homes and businesses, along
with large solar “farm” installations.
“This state should place a cost cap on new nuclear power – and remove
the one on solar,” added Blackburn, referring to legislation in 2007
restricting rate increases for solar energy while requiring that 0.2%
of all utility sales be solar power. Solar installers and advocates
have complained for months that the utilities are doing the bare
minimum on renewables and energy efficiency so they can keep arguing
for the need to build nuclear plants.
The economist, who has analyzed energy issues since the mid-1970s,
produced the report for clean energy nonprofit NC WARN. It was
co-authored by Sam Cunningham, a masters candidate at the Duke
University Nicholas School for the Environment. The authors emphasize
that solar prices should be compared to new nuclear plant costs, and
that electric rates will rise much less with a clean-energy approach.
NC WARN sent the solar-nuclear report to Governor Perdue today and
asked for a meeting to brief her about the new economics of energy and
the implications it has for North Carolina. The clean energy advocates
also asked for the Governor’s help in developing the financing
mechanisms for solar energy that are proving successful in other
states.
“We are asking the Governor to take the leadership in creating the new
solar economy,” said NC WARN attorney John Runkle today. “The biggest
barriers to solar electricity are the electric utilities, and if they
begin construction on nuclear plants, our electricity rates will
skyrocket and our solar industry will continue to be impeded.”
As Dr. Blackburn reported earlier this year, even modest increases in
efficiency and clean energy sources, when used in combination, will
avoid the need for new nuclear plants. That approach will even allow
the phase-out of the state’s coal power plants – which climatologists
say must happen within 20 years.
“This report should be a game changer if our democratic institutions
do their jobs,” said NC WARN director Jim Warren today. “There is a
global energy transition underway, one that is crucially needed to
rebuild our economies and tackle the climate crisis. North Carolina’s
big utilities need to either contribute to that transition or get out
of the way and watch rooftop solar and other sources of distributed
energy capture the market.”
“We’re urging people who are financially able to invest in rooftop
solar – PV and/or hot water – to do so right away,” he added. Warren
explained that this will help the customer, help grow the solar
market, and help everyone by cutting energy demand and pollution.
“This report should end the argument for risking billions of public
dollars on new nuclear projects.”
See the solar-nuclear report at the top right of www.ncwarn.org
NC WARN is a member-based nonprofit tackling the accelerating crisis
posed by climate change – along with the various risks of nuclear
power – by watch-dogging utility practices and working for a swift
North Carolina transition to energy efficiency and clean power
generation. In partnership with other citizen groups, NC WARN uses
sound scientific research to inform and involve the public in key
decisions regarding their wellbeing.
Pursuing new power plants is squandering our chances to slow global warming.
Jim Warren, Executive Director
NC WARN
North Carolina Waste Awareness & Reduction Network
Ph: 919-416-5077 Fax: 919-286-3985
PO Box 61051, Durham, NC 27715-1051
Email: Jim @ ncwarn.org Web: www.ncwarn.org
