Renewable Energy: Set Our Economy Free!

1. Renewable Energy:Set Our Economy Free! James M. Taylor Senior Fellow, Environment Policy The Heartland Institute JamesTaylorPolicy.com jtaylor@heartland.org

2. North Korea: Every day is Earth Day!

3. Which Would You Choose?

4. Electricity Prices by State

5. What Are the Costs of Competing Power Sources?Source: Gilbert Metcalf, Professor of Economics, Tufts University (2007) • Levelized production costs per kWh in tax regime providing no investment preferences: • Coal: 3.79 • Clean coal: 4.37 (+ 15 %) • Natural gas: 5.61 (+48 %) • Nuclear: 5.94 (+57 %) • Wind: 6.64 (+75 %) • Solar thermal: 18.82 (+570 %) • Solar photovoltaic: 37.39 (+887 %)

6. Levelized Electricity Costs: 2016Source: U.S. Energy Information Administration • Levelized production costs per mWh in tax regime providing no investment preferences: • Natural gas: 63.1 • Natural gas (with CCS) 89.3 (+42%) • Coal: 94.8 (+ 50 %) • Clean coal (with CCS): 136.2 (+116 %) • Nuclear: 113.9 (+81%) • Onshore Wind: 145.5 (+131%) 23% capacity • Offshore Wind: 361.8 (+474%) 23% capacity • Solar thermal: 311.8 (+394 %) • Solar photovoltaic: 210.7 (+234 %)

7. Federal Electricity Subsidies Source: U.S. Energy Information Administration

8. Will Kansas Politicians Ever Learn? Year Renewables KS Price US Price 2009 2.8 mWh 7.98 c/kWh 9.82 2010 3.4 mWh 8.35 9.83 2011 3.7 mWh 9.90 2012 DOUBLE 9.24 9.93

9. State-by-State Comparison State Price % Ren KS Savings Per KS Hs KS 9.24 7 - - MO 8.54 1 $280 mil. $250 NE 8.39 1 $340 mil. $300 OK 7.52 1 $690 mil. $600

10. But What about Green Jobs?

11. Spain Economy Beginning in2005, when unemployment in Spain was8.7 percent, Spain embarked on a renewable energy program designed to transform the nation’s economy. Economics professors at Spain’s King Juan Carlos University published a 2009 study showing that for every 1 “green” job created, 2.2 jobs were destroyed elsewhere in the economy. Spain’s unemployment rate has approximately tripled since Spain’s renewable energy program took effect, and now stands at 26%.

12. Spain Economy In February 2012 Spain’s government announced that it can no longer afford to subsidize renewable power and is halting all subsidies.

13. UK Economy A 2011 study by Verso Economics found that renewable energy mandates in the UK killed 3.7 jobs for every 1 job created.

14. Compare to Oil and Gas Production • Shale oil finds in North Dakota (under private lands) are fueling a oil boom in the state. North Dakota’s unemployment rate is 3%. • Texas leads the nation in oil and natural gas production. More than 40% of the nation’s job creation during the recent recession occurred in Texas.

15. Is China Really Eating Our Lunch?

16. What About Pollution?

17. 4. Cutting U.S. Emissions Would Make Little Difference(In Million Metric Tons)Source: U.S. Energy Information Administration

18. Wind Power

19. Wind Power Impacts • Intermittent and unpredictable • Land intensive - 600 sq. mi. = 1 conventional plant • Bird kills (440,000/yr), bat kills, crops

20. Solar Power

21. Solar Power Facts and Impacts • Intermittent • Land intensive – 40 sq. mi. = 1 conventional plant • Water intensive – 2x coal, 4x natural gas • Most economical where water is scarce

22. Environmental Priorities Are Determined by Subjective Preferences

23. Thank You, Any Questions? James M. Taylor Senior Fellow, Environment Policy The Heartland Institute jtaylor@heartland.org