Renewable Power Isn’t the Cheap Fix It Sounds Like

The idea that wind and solar automatically lower electricity bills is a myth. A series of posts by analyst Steve Carson shows that while renewable plants produce power for almost no fuel cost, the grid still has to pay a lot for flexibility, backup and wiring.

China: Growth vs. Coal

• Huge renewable growth is matched by equally large coal use.
• Data selection can make either story seem true.

Germany: Interconnectors as Hidden Storage

• Cut coal and nuclear while adding wind and solar.
• Imports power from neighbors to fill gaps.
• Success relies on interconnectors that act like hidden storage, sharing cheap generation and backup across borders.

UK: Decarbonisation Out‑sourced

• Coal has fallen away; wind is rising; gas remains central.
• Imports a lot of power from France’s nuclear fleet and Norway’s hydro.
• Decarbonisation partly outsourced.

South Australia: A Real‑World Laboratory

• High share of rooftop solar, wind and limited transmission.
• Pricing paradoxes:
• Midday prices can become negative when solar outpaces demand.
• Evening peaks surge because the sun is gone and wind cannot fully cover the gap.
• Batteries help by charging when prices are low, but they can only store a limited amount and cannot smooth the entire day.

Key Takeaways

• The expensive part of renewables is making the grid work when the sun and wind are not available.
• The cost of managing variability, maintaining backups and expanding transmission keeps overall prices high.
• Importing power from more stable neighbors can reduce costs, as seen in France’s nuclear‑heavy grid.
• Cheap renewable fuel does not automatically equal cheap electricity for consumers.