DEBUNKING FOUR MYTHS ABOUT THE CLEAN ENERGY TRANSITION
Summary
This report by Energy Innovation debunks four common myths regarding the clean energy transition, arguing that decarbonizing the electricity sector is possible without sacrificing reliability or affordability. The authors contend that grid variability, overgeneration, high costs, and the role of natural gas are often misunderstood or based on outdated data, and that demand-side management, regional trading, and energy efficiency are key drivers of a low-carbon future.
Key insights
- The 'duck curve'—where high solar and wind output during the day creates ramping challenges in the late afternoon—can be managed through flexible demand-side techniques rather than expensive fossil-fuel backups. Demand response (DR) can eliminate the need for peaking generation; for instance, adding 10 GW of DR capacity in California by 2050 could displace significant fossil-fueled peaking capacity.
- Excess renewable generation does not necessarily need to be curtailed or stored if there is adequate transmission and regional coordination. Real-time trading between balancing areas allows surpluses to be sold to other markets, as seen in Germany, which exported roughly 85 TWh of electricity (18 percent of its total generation) to neighboring countries in 2015 for $4.1 billion.
- The Energy Imbalance Market (EIM) in the U.S. West, covering over 35 million customers across eight states, reduces the need for peaker plants by allowing trading between the California Independent System Operator (CAISO) and utilities like Pacificorp and NV Energy, potentially producing $70-$200 million in annual savings.
- Renewable energy costs are often underestimated due to the use of outdated data. For example, a 2014 update to an NREL study found that the most ambitious cost reduction estimates for 2050 had already been achieved by 2014. Additionally, some reports, such as JP Morgan’s Brave New World, used solar photovoltaic costs ($2.25/watt-AC) that were 12-23 percent higher than actual U.S. prices in Q3 2015.
- While electricity rates may be high, overall customer bills can remain low through energy efficiency policies. In Colorado, a 2013 request for proposals to replace 900 MW of coal-fired generation with renewables resulted in winning bids lower than the average price of generation. Similarly, Palo Alto approved a utility-scale solar purchase power agreement at $0.037/kWh, which is below the average levelized cost for coal and natural gas.
- Renewables and energy efficiency have contributed more to the decline of U.S. carbon dioxide emissions since the 2007 peak (2,425 million metric tons) than natural gas. While more natural gas capacity was added than non-hydro renewables since 2007, renewables produce essentially zero emissions, whereas natural gas emits roughly half the CO2 of coal.
- Energy efficiency has been a primary driver of emissions reductions, reducing electricity demand by approximately 200 TWh between 2007 and 2014. This is estimated to have contributed at least one-third, if not more, of total emissions reductions to date.
Cite the original document
- APA
- ORVIS, R., O’BOYLE, M., & KENNAN, H. (2016). DEBUNKING FOUR MYTHS ABOUT THE CLEAN ENERGY TRANSITION. Energy Innovation. https://energyinnovation.org/wp-content/uploads/DebunkingFourCleanEnergyMyths.pdf
- Chicago
- ORVIS, ROBBIE, MICHAEL O’BOYLE, and HALLIE KENNAN. DEBUNKING FOUR MYTHS ABOUT THE CLEAN ENERGY TRANSITION. Energy Innovation, 2016. https://energyinnovation.org/wp-content/uploads/DebunkingFourCleanEnergyMyths.pdf.
- Wikipedia
- {{cite report |last1=ORVIS |first1=ROBBIE |last2=O’BOYLE |first2=MICHAEL |last3=KENNAN |first3=HALLIE |title=DEBUNKING FOUR MYTHS ABOUT THE CLEAN ENERGY TRANSITION |publisher=Energy Innovation |date=June 2016 |url=https://energyinnovation.org/wp-content/uploads/DebunkingFourCleanEnergyMyths.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{orvis2016debunking, author = {ORVIS, ROBBIE and O’BOYLE, MICHAEL and KENNAN, HALLIE}, title = {{DEBUNKING FOUR MYTHS ABOUT THE CLEAN ENERGY TRANSITION}}, institution = {Energy Innovation}, year = {2016}, month = jun, url = {https://energyinnovation.org/wp-content/uploads/DebunkingFourCleanEnergyMyths.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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