Clean Energy Wins - Powering Pennsylvania's 21st century economy

Clean Energy Saves Money for Consumers and Businesses

Energy efficiency and renewable energy sources lead to lower costs for all energy consumers, as both reduce demand on electricity producers, which lowers the cost to produce electricity.  Clean energy can also reduce operating budgets through lower energy costs. In buildings, transportation and manufacturing, the less energy needed to perform a task, the less expensive it is to operate.  Dollars saved go back into the pocket of the consumer or are spent elsewhere to grow the economy.
Wholesale Electricity Price Suppression

  • Renewable energy lowers electricity costs and cuts pollution: according to a recently released report from PJM Interconnection, the independent operator of the 13-state electricity grid that services Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.The study examined several different scenarios of increasing renewable energy from a 2 percent business as usual (BAU) assumption to 14 percent, 20 percent and 30 percent of total grid power supply.
      • Some of the major findings of the study include:
        • Wholesale electricity prices are reduced annually by $9 – $21 billion by increasing renewable electricity penetration from BAU to 20 – 30 percent.
        • Overall production cost of electricity is lowered by 25 – 35 percent ($9 – $13 billion) each year.
        • Reduces carbon pollution by 18 – 29 percent, or 80 to 200 million tons annually.
        • The value of renewable energy generation is estimated at $50/megawatt hour.
  • Renewable Energy Provides a Hedge against increasing fossil fuel commodity prices:  The most expensive marginal costs of producing electricity are related to fuel expenses.  Increases in the price of coal or natural gas can have major impacts on electricity bills. Energy efficiency and renewable energy have zero fuel costs. They provide a valuable risk management tool to hedge against fossil fuel and other fuel price increases, adding price stability to the electricity system portfolio.