Solar Power's Straw Man
One of the most efficient sources of renewable energy is solar power. In deregulated markets, solar lowers wholesale power prices, cuts emissions and reduces the need to build new transmission lines. From the point of view of state and national policymakers, solar power is a clear winner. But independent power producers such as NRG Energy (NRG), GenOn Energy (GEN) and Calpine (CPN) may have a different view. That is because solar power facilities can hurt earnings by displacing more expensive forms of peak power.
Recently, Exelon (EXC) and PPL (PPL) have been complaining about wind power. Wind power, they charge, is lowering wholesale power prices and margins on their fleets of nuclear and coal power plants. Exelon has argued that wind facilities no longer need federal incentives, which should be eliminated. PPL announced that wind power was a factor behind its recent decision to retire the 44-year-old Corette coal-fired power plant....589 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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