Green New Boondoggle: California’s Power Grid Needs $9 Billion to Go Green
The push for green energy in California has come at a high cost. The state now needs to spend $9.3 billion on upgrades to its power grid to support the transition to solar and wind energy, as well as the increased use of electric cars and home appliances, according to the California Independent System Operator. The nonprofit has identified 46 projects that need funding to complete this transition, including the construction of new transmission lines and other grid upgrades. These projects will cost billions of dollars and take years to complete.
It’s worth noting that Californians already pay some of the highest electricity bills in the country. Governor Gavin Newsom’s “aggressive” approach to accelerate the state’s transition to clean energy will likely lead to even higher bills. Natural gas is currently cheaper than electricity, and the push for electric cars and appliances has resulted in increased power demand, putting pressure on utility providers.
The situation has already prompted rolling blackouts last summer for the first time in two decades. California’s increased reliance on electricity as residents move away from gas-powered appliances and vehicles has put a strain on the state’s power grid. Electricity prices have risen 15% in 2022 alone and approximately 80% since 2008 when California began its green energy push. This could trigger political backlash as Californians become more unhappy with higher prices and decreased reliability.
Despite these issues, the Biden administration has applauded California’s green energy policies, with energy secretary Jennifer Granholm citing the state as an inspiration to “move faster and further” toward green transitions. But critics warn that it’s a “fantasy type of policy not grounded on where the current technology is” and could be immensely expensive if California mandates clean electricity while also charging people 30 or 40 cents per kilowatt-hour.
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