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ThreeNon-Economic
ChallengesFacingthe
Renewable-EnergyTransition
KennethP.Green
2024
2024 • FraserInstitute
ThreeNon-EconomicChallengesFacing
theRenewable-EnergyTransition
KennethP.Green
Contents
ExecutiveSummary / i
Background / 1
EnergyReturnonInvestment—aThermodynamicFrameofAnalysis / 10
ConclusionandPolicyImplications / 13
References / 14
AbouttheAuthor / 17
Acknowledgments / 17
PublishingInformation / 18
AbouttheFraserInstitute / 19
EditorialAdvisoryBoard / 20
ExecutiveSummary
Canada,aswithmanyotherenvironmentallyconscientiousgovernments,ispursuinganagenda
ofanenergytransition:awayfromfossilfuels,andtowardasocietyincreasinglydrivenbywind
power,solarpower,andhydropower.Pollingsuggestsabout2/3ofCanadiansgenerallylookupon
thisapproachfavorablybothintermsofcostandenergysecurity.
Costsofonshorewindpowerandstand-alonecommercial-scalesolarpowerhavedeclined,as
supportersofthesetechnologieshavelongpromised,withthelatestestimatesofcombined-cycle
naturalgas,on-shorewind,geothermalpower,andstand-alonesolarpowerallfallintherangeof
$36-$39/MWh.
Butcostisonlyoneobstacletothewind-water-solarpoweredfuture.Threeotherphysical
challengesremain.Thesechallengesinclude:
•Massivelandconsumptionofwind-andsolar-powergenerationwhich,eveninthisearly
phaseoftheenergytransitioniscausingpublicunease,andpushbackagainstmanynew
projectsassociatedwiththeselow-densitypowersource.Whenmeasuredin2010,for
example,renewableenergiesgenerated525GWofpower,butconsumed398,000square
kilometers
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