In the real world, the costs of renewables will soar while coal costs eventually come down to Earth, says Lawrence Solomon. Read more.
, measures that increase the levelized cost of coal. And it makes renewables look artificially good by providing an investment tax credit that refunds half of the capital costs of wind and solar power and provides a production tax credit of 2.6 cents per kWh generated. Since the U.S.
Levelized-cost calculations represent nothing more than wishful thinking on the part of renewable proponents. Large-scale renewables, though they may often cost little on a levelized logic, have so little value in practice that even the monumental Build Back Better subsidies won’t always be able to sustain them.
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