In his March 9 column ("Pricey power in the mix"), Rick Martinez was snared by a trap that befalls many when looking at North Carolina energy policy. His problem comes from comparing new renewable power plants with existing conventional power plants. His analysis would have been more helpful had he compared the cost of new renewable energy to energy from new coal, nuclear or natural gas plants. The unfortunate truth is that any new power plant will be more expensive than what we currently have. And given the continued growth of our state, we will need new generation.
In order to keep future energy prices as low as possible, renewables will be an important element in our state's future energy mix. The price of conventional sources of energy (coal, nuclear and natural gas) is rising inexorably, but the price of renewables is falling.
Last November, the U.S. Energy Information Agency updated its analysis of the projected cost to build generating plants. From 2010 to 2011, the cost of coal, nuclear and natural gas plants increased 25 percent to 39 percent, while solar photovoltaic costs dropped 25 percent. When one includes the cost of fuel, energy from wind farms costs less than that from new coal, nuclear and natural gas facilities.
It is no surprise then that about 40 percent of all new generation capacity added to the U.S. electric grid in recent years is from wind power projects, more than from coal, nuclear or natural gas. Senate Bill 3, which Martinez disparages as anti-consumer, is in fact just the opposite.
Reliable, affordable energy is a critical underpinning to our state's economy. In four short years, Senate Bill 3 is showing results and creating prosperity for North Carolinians. The 2010 census of renewable and energy efficiency companies reported 12,500 jobs in those industries, up 22 percent from 2009; this at a time when employment was falling in the rest of the economy.
The use of solar energy has exceeded the objectives of Senate Bill 3, coming on line faster and at a lower cost than anyone expected. Since the bill's passage in 2007, the cost of solar in the state has dropped by 49 percent, propelling North Carolina to ninth place among the states in solar energy. And earlier this year, a 300-megawatt wind farm was announced in Pasquotank and Perquimans counties, which will bring jobs and revenue to one of the most economically deprived parts of our state. Charlotte is developing a national reputation as the new energy capital, and Raleigh is home to a growing cluster of smart grid companies, both established firms and new innovative start-ups.
The green energy sector, rather than faltering as Martinez suggested, is vibrant, robust and growing, bringing jobs and economic opportunity to tens of thousands of North Carolinians in all corners of our state.
Markus Wilhelm
Founder and CEO, Strata Solar
Chapel Hill
The writer is chair of the N.C. Energy Policy Council's Renewable Energy Committee. The length limit was waived to permit a fuller response to the column.
