That’s the percentage of a power plant’s maximum potential actually achieved over time. And Bloomberg reports that wide spread adoption of renewables is lowering the hitherto incomparable capacity factor for fossil fuels. This begins the virtuous cycle.

That’s because once a solar or wind project is built, the marginal cost of the electricity it produces is pretty much zero—free electricity—while coal and gas plants require more fuel for every new watt produced. If you’re a power company with a choice, you choose the free stuff every time.
It’s a self-reinforcing cycle. As more renewables are installed, coal and natural gas plants are used less. As coal and gas are used less, the cost of using them to generate electricity goes up. As the cost of coal and gas power rises, more renewables will be installed.
Again, no use getting all Pollyannish about any of this. But the business news only reports the business view and it doesn’t really care if renewables are more profitable than fossil. Business only cares about that middle part – the profit.
So, BFD.
Image: author photo, near Valreas, France.



Extensive studies done after Katrina verified what lifelong residents of southeastern Louisiana already knew: Unless the rapidly disappearing wetlands are made healthy again, restoring the natural defense, New Orleans will soon lay naked against the sea (see satellite image, below).

Our best hope for carbon reduction is steep price drops in the cost of generating electricity by wind and solar; in the cost of installing wind turbines and solar panels; and in the cost of storing energy in batteries. If those price drops are achieved, we’ll head toward vast reductions in emissions regardless of what the EPA does. No one is going to pay 12 cents a kilowatt hour for electricity (our current national average) if it can be had for 2 cents a kilowatt hour, all other things being equal.
