Renewables Are Driving Up Electricity Prices. Wait, What?

By Nancy E. Pfund & Anand Chhabra, March 12, 2015

The argu­ment that an increase in renew­able energy in the United States means more expen­sive elec­tric­ity has per­vaded the debate on renew­ables ver­sus fos­sil fuels for decades. A new DBL Investors’ report “Renew­ables Are Dri­ving Up Elec­tric­ity Prices. Wait, What?” exam­ines the 100-​​year-​​old util­ity busi­ness model by look­ing at the top and bot­tom 10 states that derive elec­tric­ity from renew­able sources. The report reveals that over the last ten years greater gen­er­a­tion from renew­ables did not equate to sky­rock­et­ing elec­tric­ity prices. In fact, states gen­er­at­ing more elec­tric­ity from renew­ables often expe­ri­enced aver­age retail elec­tric­ity prices well below states pro­duc­ing less elec­tric­ity from renewables.

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