2016-06-22

Central Planning Destroying California Economy

A couple of months ago I wrote Central Planning Fail: Negative Power Rates in California as Los Angeles Goes Dark
renewables are a destructive force on the energy supply due to central planning. Renewables are destroying the power grid because subsidies allow them to be added even if unprofitable, with the cost burden shifted onto the remaining fossil fuel and nuclear power plants. As more renewables are added, the burden increases and supply drops further. If you see what is happening, you will put solar on your property as well because the long-term price of energy in California is rapidly increasing.
This week: California power grid prepares for heatwave, possible natgas shortage
All customers, including homes, hospitals, oil refineries and airports are at risk of losing power at some point this summer because a majority of electric generating stations in California use gas as their primary fuel. In April, millions of electric customers in Southern California were warned they could suffer power outages on up to 14 days this summer due to the closure.
Why does California's energy system lack diversity? California utilities didn't choose to all move to natural gas, it was political decision driven by environmental policy. The immediate blame is placed on the natural gas leak, but there is always a culprit to blame. Even Venezuela, a total economy policy disaster, blames low oil prices.

Bad policy results in more frequent and more intense crises, but California's energy crisis is entirely self-inflicted.

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