Debunking Renewables Misinformation - Summary & Context

Concise, sourced summary of The Cooldown piece and the broader energy-price debate.

What the article shows

Independent journalist Michael Thomas examined a widely shared chart that claimed renewables were more expensive than fossil fuels. He found the chart misleading because it compared retail electricity prices (which include taxes, network charges, and policy costs) rather than the wholesale generation cost that shows how cheap renewables can be ^[1].

Wholesale vs. retail: why the distinction matters

Wholesale prices reflect the cost of producing electricity on the grid at a given hour (and are heavily influenced by which generators set the marginal price). Retail prices that consumers see bundle wholesale energy with transmission, distribution, taxes, subsidies, and administrative costs—so retail ≠ pure generation cost. Misleading comparisons often mix these two, producing false conclusions ^[2][3].

The merit-order effect

When low-marginal-cost sources like wind and solar enter the market, they displace higher-cost generators in the merit order and reduce spot (wholesale) prices during the hours they produce. This “merit-order” effect tends to lower average wholesale prices, even if retail bills include other fixed charges. That dynamic is central to why simple charts that omit market mechanics mislead ^[4].

Costs of renewables have fallen sharply

Data from global agencies show renewable technologies and storage costs have plunged in recent years: most new wind and solar projects are now cheaper than new fossil plants, and battery costs have fallen dramatically—undercutting many claims that renewables are inherently more expensive. These long-term trends matter more than one-off retail snapshots ^[5][6].

Short-term drivers of higher bills

That said, consumers in some countries face high retail bills because of factors unrelated to generation cost—network upgrades, taxes, policy support mechanisms, capacity payments, and past investments. These are legitimate policy questions, but they are not proof that renewables are intrinsically costlier to generate ^[3].

Key takeaway: The Cooldown piece demonstrates how one misleading chart conflated retail and wholesale concepts. To judge energy costs fairly, compare generation (wholesale) costs and account transparently for taxes, grid charges, and policy payments.

Sources

1. The Cooldown — Michael Thomas debunks misleading renewables cost chart
2. Reuters — Climate policy requires more realistic approach
3. New York Post — ‘Cheap’ solar and wind is a lie, green countries pay more
4. Wikipedia — Merit order effect
5. AGBI — Costs versus profits in the energy transition debate
6. IRENA — Renewable Power Generation Costs

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