Electricity

CA Moves To Drop Cheap Hydropower

The state gets more attractive every day

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What this means is that all energy is "fungible": all forms of energy are interchangeable in use but not in price.  Stated differently, the availability of the lowest priced source of clean energy, hydropower, holds down the price inflation of all other forms of energy (e.g., natural gas, nuclear, geothermal, wind, and solar).  Take away the lowest priced product of anything — a commodity, a manufactured good or a service — and there will be price inflation due to lack of a cheaper competitor.

This is precisely what California is intending to do with its pending joint plan with Oregon, the U.S. government and billionaire Warren Buffett to demolish four dams and hydropower stations. But currently there is a dry spell in Oregon and local farmers and ranchers are opposed to demolishing the dams, as reported  April 19 in the Wall Street Journal.

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2 responses to “CA Moves To Drop Cheap Hydropower

  1. RTFA.

    Other than the vested interests, this makes absolutely no sense.

    Greens, of course, are opposed to all energy use other than human muscle power, but choosing to demolish the dams in the name of “Green Power” is stupid even by their standards.

    1. Right. This reads like a fun conspiracy theory, even plausible if you don’t think too much about it, but it’s pretty far fetched. Greens have many reasons for not liking dams, but making wind farms and other green energy look cheaper is beyond their imagination.

      It also doesn’t help the way the first few lines were not copied over; makes it look like the paster didn’t even see them next to the picture.

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