Energy Alliance has released research findings in a report titled "The High Cost of Wind, Solar, and Batteries," emphasizing that renewable energy sources are currently less efficient, affordable, and reliable compared to fossil fuels. This announcement was made through a press release on February 10, 2025.
According to Energy Alliance, the U.S. Energy Information Administration reports that constructing a combined-cycle natural gas generating unit costs $868 per kilowatt of capacity. In contrast, wind, solar, and battery storage facilities incur significantly higher costs. The study suggests that government subsidies for renewable energy will surpass $250 billion over the next decade to bridge these cost differences. Despite potential savings in fuel costs, the study indicates that the higher capital and fixed costs associated with renewables negate these savings.
The report further compares the costs of wind, solar, and battery storage to natural gas. It reveals that wind energy is three times more expensive while solar and battery storage costs are over four times higher. The analysis also considers the financial impact of electrification mandates in Oregon and Washington, estimating a total cost of $549 billion through 2050. Additionally, it addresses the reliability challenges posed by renewables due to their intermittency and examines the potential cost implications of policies and subsidies for renewable energy.
"Renewable energy is adding tens of billions of dollars of costs to the U.S. economy every year," said Bill Peacock, policy director of Energy Alliance and author of the paper. He added that "the failed war on fossil fuels is pushing America toward European-style energy poverty."
The Energy Alliance operates as a project under the Texas Business Coalition. It focuses on analyzing factors affecting the energy market such as reliability, affordability, and efficiency. The organization provides insights into electric grid stability and assesses how subsidies impact energy production. It also examines trends in energy costs and market dynamics including competitive electricity markets and regulatory policies.
