Efficiency Deficiency: Fossil Fuels Just Can't Compete

Fossil fuels like coal, petroleum (oil), and natural gas are so abundant on our planet that despite their lower efficiency rates in generating electricity, they eclipsed the 100-percent efficient renewable resources of wind and hydro power. Efficiency here means the amount of electricity generated per unit of the resource.

The technology for harnessing the full power of the wind and water currents took a bit more time to develop, but now many areas of the United States and the European Union have these renewable energy plants, windfarms and small hydro installations that generate electricity 100 percent efficiently.

In going from source to electricity, coal, gas and diesel range from a mere 35 percent for coal to around 60 percent for the liquid fossil fuels. The excess burned fuels pollute the air and runoff into water streams as sludge. Without proper government regulation in place, dirty emissions from these resources would be even worse today than they already are.

Researchers have noted that the Levelized Cost of Electricity or LCOE for wind, in particular has become decidedly less than its polluting competitors - the fossil fuels. The chart below shows figures from Lazard research institute's LCOE analysis.

Wind as low as $37, Gas Combined Cycle at $61. (Lazard, LCOE, 2014)

Wind's efficiency has finally demonstrated that it can be cost effective, too. Remarkable advances in solar photo voltaic (PV) technology have even placed it in head-to-head price competition against its pollution-emitting competitors, especially coal. (I apologize for the smaller sice of the chart. Click here for full report.)

Some electricity service companies in the U.S. offer individuals the option for electricity, powered completely by renewable resources like wind (with a growing portion of solar and small hydro in the mix). These environment friendly resources have consistently beaten electricity prices in U.S. states for the past few years. So, citizens now have the option of helping the environment and saving on their electric bills, while maintaining their standard of living.

In sum, many of the benefits of the less efficient, yet abundant fossil fuel resources have become more costly in comparison to the rising benefits and falling costs of clean, efficient resources like wind, solar and small hydro. The video below shows the construction of a windfarm for your viewing pleasure.

How to Build a Windfarm. (Source: YouTube, Smithsonian Channel, 2014)

Thanks for reading. Next up, tales from the Saudi Arabia of Natural Gas, and it's not where you think. See you on September 1st!