Discovery Institute reveals high cost of Ohio’s move toward renewable energy

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Study author Jonathan Lesser of the Discovery Institute. | Discovery Institute.

Renewable energy, led by solar power, is rapidly growing in Ohio as a source of electricity. Ohio ranks 8th in the nation with 2,611 megawatts of summer capacity from solar, an increase of 148% over last year, when the state ranked 18th.

One of the factors driving this increase is Ohio’s renewable energy portfolio standard, which requires that “8.5% of electricity sold by Ohio’s electric distribution utilities or electric services companies be generated from renewable sources by 2026.”

Residents from across Ohio have raised concerns about the increase in renewable energy, particularly regarding its potential effects on the environment and rural communities.

Jill Sorrell, a resident of Preble County, wrote on Facebook that it was a "sad day for Preble County" when two solar farms were approved in the county.

"Our farm is right beside the solar farm and across the road. We are very concerned about our tile, run off on crops, where's the wildlife going to go, value on our property, the maintenance on them once they are done,” Sorrell said. “It's been a five year process, our attorney and group has done a great job but how do you beat the government? I will be heartbroken the rest of my life."

A recent study shows that the increase in renewable energy could significantly raise electricity costs for Ohioans. The study compares electricity costs in Oregon and Washington, states with similar laws mandating increased reliance on renewables.

The Crippling Costs of Electrification and Net Zero Energy Policies in the Pacific Northwest, a report from the Discovery Institute, found that the effects of pushing more renewables onto the electric grid in Washington and Oregon “will be devastating” for customers.”

Both states “have committed to electrification policies to eliminate energy-related greenhouse gas emission … which require 100% of all new cars and light trucks sold to be electric by 2035.” 

They also require “electric utilities to eliminate all fossil-fuel generation and supply 100% zero-emissions electricity,” with Oregon targeting 2040 and Washington 2045.

“The effects on your monthly electric bill are going to [be] absolutely devastating,” said Jonathan Lesser, economist and author of the report. “The average person is going to see their electric bill balloon by 450% by 2050. Small business owners won’t escape, they’ll see their bills going from an average of $600 a month today to almost $4,000 in the next 25 years.”

While Ohio has not gone as far as Washington and Oregon, Cleveland and Cincinnati have both announced plans to move toward 100% renewable energy and a net-zero policy. These plans will push the state into greater reliance on renewable energy than the state’s renewable portfolio standard currently requires.

The effects of renewable energy are already being seen in Ohio’s electricity prices.

The average cost for residential electricity in Ohio this year is 15.82 cents per kilowatt-hour, a 30% increase from 12.07 cents in 2020. This increase coincides with the rapid expansion of renewables on the grid.

Wholesale prices have also increased in the PJM service area, which manages the grid for Ohio and other states in the Midwest and East Coast. The average wholesale price over the past three years was $58 per megawatt-hour, compared to $41 from 2018 to 2020, a 43% increase.

The Discovery Institute’s study found that “the cost to meet growing electricity demand with natural gas and nuclear power would be … one-sixteenth of the cost of supplying that electricity with renewables.”

Bill Peacock, policy director of the Energy Alliance, said the electrification policies of Cleveland and Cincinnati will increase electricity demand and costs in Ohio.

“These policies envision the replacement of all fossil-fuel space- and water-heating systems with electric systems powered by wind and solar power,” Peacock said. “Artificially increasing the demand for electricity will place a strain on the grid that renewables are not designed to meet. The result will be an overinvestment in renewable capacity at great expense to Ohio consumers, along with a rapid decline in grid reliability.”

Peacock pointed to Texas, the nation’s largest producer of renewable energy, as an example. Electricity costs in Texas have increased in recent years as the state struggles with the growth of renewables.

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