ICOSA
Nuclear vs. Solar
RECEIVED Tue., Feb. 8, 2011
Dear Editor,
Concerning the article titled "AE's Nuclear Option" [News, Jan. 21]: There are several misconceptions that have been stated, such as the cost of nuclear compared to solar renewables. Here is an analysis of three sources of energy, each one generating 12,000 kilowatt-hours annually:
Rooftop solar panels: 10 kW of solar rooftop panels supplies 0.137 x 8,760 x 10 = 12,000 kWh. The estimated cost is $6/W, so the total installed cost (without subsidies) is $60,000. Assuming a 25-year life, the average energy cost is 27 c/kWh.
Large single axis solar photovoltaic farm: 5.5 kW of large solar PV 0.25 x 8,760 x 5.5 = 12,000 kWh. The estimated cost is $4/W, so the total installed cost (without subsidies) is $22,000. The average energy cost over a 25-year life is 10 c/kWh.
Nuclear South Texas Project 3 and 4: 1.5 kW of nuclear generates 0.913 x 8,760 x 1.5 = 12,000 kWh. The estimated cost is $5/W, so the total installed cost (without subsidies) is $7,500. My energy cost (40-year life) is 1.6 c/kWh + 2 c/kWh O&M = 3.6 c/kWh.
The program Austin Energy is emphasizing will be the Large Single Axis Solar PV program. However the financing interest rate used in the purchase power agreement will result in an energy cost of 16 c/kWH, which represents a rate increase to all Austinites. That's one reason AE has a rates committee right now, so they can increase your rates to pay for the 200 MW planned solar PV program. Note that over the 25-year life Austinites will pay more than 160$/MWh x 200 MW x 0.25 x 8,760 x 25 = $1.752 billion! That is on top of the $2.3 billion dollars AE is obligated to pay for the 100 MW bio plant in East Texas. Folks, AE is driving us into financial ruin with these foolish investments.
Concerning the article titled "AE's Nuclear Option" [News, Jan. 21]: There are several misconceptions that have been stated, such as the cost of nuclear compared to solar renewables. Here is an analysis of three sources of energy, each one generating 12,000 kilowatt-hours annually:
Rooftop solar panels: 10 kW of solar rooftop panels supplies 0.137 x 8,760 x 10 = 12,000 kWh. The estimated cost is $6/W, so the total installed cost (without subsidies) is $60,000. Assuming a 25-year life, the average energy cost is 27 c/kWh.
Large single axis solar photovoltaic farm: 5.5 kW of large solar PV 0.25 x 8,760 x 5.5 = 12,000 kWh. The estimated cost is $4/W, so the total installed cost (without subsidies) is $22,000. The average energy cost over a 25-year life is 10 c/kWh.
Nuclear South Texas Project 3 and 4: 1.5 kW of nuclear generates 0.913 x 8,760 x 1.5 = 12,000 kWh. The estimated cost is $5/W, so the total installed cost (without subsidies) is $7,500. My energy cost (40-year life) is 1.6 c/kWh + 2 c/kWh O&M = 3.6 c/kWh.
The program Austin Energy is emphasizing will be the Large Single Axis Solar PV program. However the financing interest rate used in the purchase power agreement will result in an energy cost of 16 c/kWH, which represents a rate increase to all Austinites. That's one reason AE has a rates committee right now, so they can increase your rates to pay for the 200 MW planned solar PV program. Note that over the 25-year life Austinites will pay more than 160$/MWh x 200 MW x 0.25 x 8,760 x 25 = $1.752 billion! That is on top of the $2.3 billion dollars AE is obligated to pay for the 100 MW bio plant in East Texas. Folks, AE is driving us into financial ruin with these foolish investments.
Dr. Eugene Preston
P.E., Ph.D., and former generation planner at AE
P.E., Ph.D., and former generation planner at AE
[Associate News Editor Nora Ankrum responds: For clarification, "AE's Nuclear Option" does not compare the costs of nuclear and solar.]