It’s now almost an article of faith among energy writers in the bulk of the media that “renewables” are the best form of energy from an environmental point of view. After all, they spew forth no noxious gases. They are also cheap and getting cheaper. Some journalists even argue that they are free: you do not have to pay for sunshine or wind.
However, a paper published this month argues that wind and solar are not cheaper than conventional fuels if the full cost of electricity (FCOE) to society is taken into account. Written by Lars Schernikau, William Hayden-Smith, and Rosemary Falcon, the paper, entitled “Full Cost of Electricity (FCOE) and Energy Returns (eROI)” appears in the Journal of Management and Sustainability published by the Canadian Centre of Science and Education.
Anthea Jeffery has drawn on this paper for part of her submission on behalf of the South African Institute of Race Relations to the parliamentary committee considering the Climate Change Bill.
All energy, the paper by the three authors argues, requires taking resources from the planet, processing them, and so harming the environment. Humanity’s goal should be to minimise “these negative impacts” by increasing efficiencies. Energy policy should have three objectives: affordability, security of supply, and environmental protection.
To ensure that energy policy promotes all three of these objectives the paper argues that both the FCOE and the eROI should be taken into account.
More commonly used is the levellised cost of electricity (LCOE). This, however, is misleading because it includes only three measures – the costs of building, fuel, and operation. FCOE, by contrast, measures the full costs of renewable energy to society. It is therefore a more comprehensive measure than the LCOE.