This post is for the 5% of the followers of this forum that need a better understanding of electric power finance because they don't know that wind and sun are free fuel.
First, electric power is not free. The major sources of electricity all have significant upfront capital investment, operating/maintenance costs (O&M), and residual costs. This is why electricity generation has been the domain of large public and private utilities.
For all electricity generation, capital investment includes engineering, installation, equipment, land, permitting, etc. O&M costs generally include the ongoing expenses such as fuel, supplies, routine maintenance, and repairs. Residual costs are frequently, but not always incurred at the end of the asset life and include decommissioning nuclear facilities, removing wind turbines, moth-balling coal plants, and the storage of radioactive materials in perpetuity. Each of the major electricity sources has a different mix of these costs.
Nuclear is capital investment intensive including substantial engineering and permitting time and costs. Nuclear fuel is "relatively" cheap considering its potential energy output. As a result, O&M is relatively inexpensive, especially if the government eats the insurance for catastrophic damage. The residual cost of spent nuclear fuel is unknown, but potentially massive because it is currently stored on plant location all over the U.S. and will continue to be until another solution is found.
Wind is also capital intensive but wind projects are very predictable compared to nuclear. You can site a wind farm and build it with a highly predictable schedule and cost. Yes, the fuel is free but O&M is not. Wind turbines need routine maintenance and repairs. Residual costs are very low and risk from catastrophic damage is non-existent.
Solar is more capital intensive than wind. The fuel is free for both thermal and PV. O&M is generally very low for PV and somewhat higher for thermal. Residual costs are low as is risk of catastrophic damage.
Natural gas is less capital intensive than other forms of electricity generation. However, O&M is very high because natural gas is comparatively expensive (sun is free, wind is free, nuclear is low). Because natural gas fluctuates in price, natural gas generation has high fuel price risk. Natural gas requires significant maintenance and repairs but residual are relatively low.
Clean coal does not exist. Coal is dirty in every way. Coal generation uses massive amounts of water for steam and requires massive cooling towers. When mined, they rip of tops off mountains and dump pollutants into streams. Erosion is a major problem. Coal burning dumps millions of tons of toxic elements into the air including mercury. (If you want your kids eating mercury sandwiches, you will like coal.) Moth-balled coal plants are a blight in many areas of our country now. And the cost of coal ash retention is high and can be devastating if containment is lost.
Hydroelectric is capital intensive and fuel costs (water) have significant environmental costs including damage to fisheries. O&M costs are generally low and residual costs are massive. Dams do represent potential terrorist targets that could be catastrophic.
In summary, all energy generation is capital intensive. Wind and solar do indeed have free fuel but that doesn't mean that O&M is free or that they are the cheapest electricity generation source. However, because their fuel is free, once built they do not have fuel price risk. They also have very low ongoing operating costs. And, they are not subject to catastrophic risk like nuclear and hydro.
Wind is clearly the most cost effective of the new clean, green generation technologies. Coal is cheapest, especially if you hate your children.
First, electric power is not free. The major sources of electricity all have significant upfront capital investment, operating/maintenance costs (O&M), and residual costs. This is why electricity generation has been the domain of large public and private utilities.
For all electricity generation, capital investment includes engineering, installation, equipment, land, permitting, etc. O&M costs generally include the ongoing expenses such as fuel, supplies, routine maintenance, and repairs. Residual costs are frequently, but not always incurred at the end of the asset life and include decommissioning nuclear facilities, removing wind turbines, moth-balling coal plants, and the storage of radioactive materials in perpetuity. Each of the major electricity sources has a different mix of these costs.
Nuclear is capital investment intensive including substantial engineering and permitting time and costs. Nuclear fuel is "relatively" cheap considering its potential energy output. As a result, O&M is relatively inexpensive, especially if the government eats the insurance for catastrophic damage. The residual cost of spent nuclear fuel is unknown, but potentially massive because it is currently stored on plant location all over the U.S. and will continue to be until another solution is found.
Wind is also capital intensive but wind projects are very predictable compared to nuclear. You can site a wind farm and build it with a highly predictable schedule and cost. Yes, the fuel is free but O&M is not. Wind turbines need routine maintenance and repairs. Residual costs are very low and risk from catastrophic damage is non-existent.
Solar is more capital intensive than wind. The fuel is free for both thermal and PV. O&M is generally very low for PV and somewhat higher for thermal. Residual costs are low as is risk of catastrophic damage.
Natural gas is less capital intensive than other forms of electricity generation. However, O&M is very high because natural gas is comparatively expensive (sun is free, wind is free, nuclear is low). Because natural gas fluctuates in price, natural gas generation has high fuel price risk. Natural gas requires significant maintenance and repairs but residual are relatively low.
Clean coal does not exist. Coal is dirty in every way. Coal generation uses massive amounts of water for steam and requires massive cooling towers. When mined, they rip of tops off mountains and dump pollutants into streams. Erosion is a major problem. Coal burning dumps millions of tons of toxic elements into the air including mercury. (If you want your kids eating mercury sandwiches, you will like coal.) Moth-balled coal plants are a blight in many areas of our country now. And the cost of coal ash retention is high and can be devastating if containment is lost.
Hydroelectric is capital intensive and fuel costs (water) have significant environmental costs including damage to fisheries. O&M costs are generally low and residual costs are massive. Dams do represent potential terrorist targets that could be catastrophic.
In summary, all energy generation is capital intensive. Wind and solar do indeed have free fuel but that doesn't mean that O&M is free or that they are the cheapest electricity generation source. However, because their fuel is free, once built they do not have fuel price risk. They also have very low ongoing operating costs. And, they are not subject to catastrophic risk like nuclear and hydro.
Wind is clearly the most cost effective of the new clean, green generation technologies. Coal is cheapest, especially if you hate your children.