Johana: <i>“Assuming that the gas-fired plant managed an 85% capacity factor and a 30-yr plant lifetime, the initial capital expenditure would work out to $0.004/kWh… </i>
but the initial capital produces no electricity. For that you need ongoing purchases of natural gas, which may be cheap now but can't be counted on to remain cheap for the next 30 years.
<i> Here in Texas, Austin Energy has agreed to a long-term purchase agreement to pay $10 million a year for 25 years, for the electricity generated by the Webberville Solar Farm. That works out to more than 15 cents per kWh.”</i>
What is the cost for peak power generation? It surely is not the "average" cost in your neighborhood.
<i>I just can’t understand how any rational person could support these boondoggles </i>
1. You are ignoring some of the current information, such as the costs of generating peak power in your area by other methods and the uncertainty of future natural gas costs.
2. Continued investment in the boondoggles is driving down the overall costs of electricity from alternatives, and will continue to do so. Solyndra was a Big Mistake, as was foretold by accountants; but it is not the whole story of government investment.
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