Harsh Reality of Renewable Energy
January 18, 2010
It's worth reminding ourselves where electricity comes from in the U.S.: Coal, 49 percent; Natural Gas, 20 percent; Nuclear Power, 19 percent; and Oil, 2 percent.
The remaining 10 percent comes from the renewables: Hydroelectricity, 7 percent; and other renewables, 3 percent. Hydroelectricity's 70 percent share of renewables cannot be easily increased because all the dams that can be built have been built.
So the Waxman-Markey bill is betting that 3 percent (10 million American homes) will follow Moore's law and magically replace a large chunk of the evil energy threesome–Coal, Natural Gas and Nuclear energy–with something else by 2025.
We believe the bill has no chance in hitting its 25 percent target. Perhaps 10 percent if they are lucky, but more likely, the smart money will follow Rich Karlgaard's advice and back cleaner and more efficient traditional sources of electricity generation.
