Column: ‘Cheap’ renewable energy doesn’t mean cheap electricity
By Glenn Davis
Published on March 14, 2026.
The article discusses the claim that renewable energy produces electricity at "almost no cost" because they have no fuel expense. However, Glenn Davis of Virginia Beach, former director of the Virginia Department of Energy and former member of Virginia House Delegates, argues that this claim is misleading as it suggests that wind and solar power produce electricity at almost no cost. This assumption is incorrect, as PJM regional grid operator, which operates the regional power grid serving 13 states including Virginia, runs a competitive wholesale electricity market based on a single clearing price. Despite these low marginal costs, renewable facilities receive the same hourly market price that gas plants set. The distinction between low marginal cost and low consumer cost is crucial to understanding this distinction.
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