Have you noticed the increasing frequency of ads promoting oil, coal and natural gas? Wonder why? The answer is the fuel costs, on the average, keep rising. Billions are being spent by the companies that sell fuel to the public for energy generation to promote their products.
Ask yourself what is the cost of fuel for the electricity industry per year? Well, for coal, Tennessee purchased $366 million for imported coal in 2010 according to EIA. Money leaving the valley. I am not saying that all our electric power can be generated by renewables, but the more renewables we have, the lower will be our fuel bill. That has a stabilizing effect on our electricity bill each month. So it comes at no surprise that electricity prices in Germany have declined. Is it possible that we pay more for electricity than Germany? Average day-ahead electricity prices in Germany fell 18 percent to 43.49 euros ($54.36) a megawatt-hour in the first five months of this year compared to last year, according to data from European Energy Exchange AG compiled by Bloomberg. According to the Institute for Energy Research, Tennesseans pay $87 a megawatt-hour. When fuel is free the cost of electricity will begin to decline.
Electricity generation from renewable energy in Germany is reducing power prices and has left the country with a (fuel) market whose design no longer works, according to Stadtwerke Leipzig GmbH, a energy consultant firm. Increasing supply of renewable energy is one of the main reasons electricity prices in Germany have declined, Teresniak from Standtwerke said that Germany saw peak solar production in May and this summer will probably see some negative prices during weekends when there is low demand.
WASHINGTON, D.C. – As Texas braces for predicted tighter electricity reserves and higher electricity rates in the state this summer, a new report shows that adding solar capacity to the Texas electricity grid would result in lower wholesale electricity prices for Texas customers.
Analysts at The Brattle Group energy consultancy reviewed Texas electricity market data from the summer of 2011 and analyzed how prices would have been impacted if solar photovoltaic (PV) systems had been added to the generation mix. Their report concludes that adding photovoltaic solar to the Texas electricity grid in the summer of 2011 could have saved customers an average of $155 to $281 per megawatt hour (MWh) and that avoiding fuel, operations and maintenance costs associated with fossil fuels plans could have saved customers an additional $52 per MWh. Taken together, the total customer benefits of adding solar PV to the Texas grid was valued at more than $520 million.
When do you think that TVA will start lowering the price we pay for electricity?