Why solar? The cost of government regulations
Our power provider, East Kentucky Power Cooperative (EKPC), has announced plans for two new solar facilities at an expected cost of $335 million, and is planning for more solar farms in the future.
This is a big investment in renewable energy. Why is EKPC proposing to spend so much on solar?
The bottom line: U.S. federal government policies are driving the electric utility industry to rapidly transition from traditional, reliable resources like coal to solar and wind in order to cut carbon dioxide (CO2) emissions.
In April, the federal EPA announced new regulations to force coal plant operators to spend billions to keep their plants running past 2032. These regulations will force rapid cuts in CO2 emissions at utilities across the nation. Likewise, government regulations also are forcing manufacturers and other industries to reduce their carbon intensity, so those companies are demanding that power providers reduce CO2.
EKPC pursuing government grants and low-interest loans to reduce our members’ cost for building new solar farms. That will help, but the cost still will be steep. We also are fighting with legal challenges against these unreasonable federal government policies.
America cannot rely on solar and wind for 24/7/365 electricity because the sun does not always shine and the wind does not always blow. So, in addition to spending billions to build new solar and wind facilities, America’s electric utilities also will pay to maintain coal and natural gas plants. If those plants are not maintained, then Americans will be without electricity when they need it most, especially during extreme temperature events. We won’t let that happen to Kentucky.
That is the cost of government regulations. We must continue to pay for reliable power plants while building brand-new renewable facilities.
Electric cooperatives are not-for-profit organizations. We’re not trying to maximize profits for investors; we simply want to provide electric service as reliably and inexpensively as possible.