Microsoft Word - FERCMemo24Apr2017 (3).docx
Summary
Amory B. Lovins of RMI argues that subsidies for distressed nuclear plants are unjustified because closing high-cost nuclear units and reinvesting their operating expenses into energy efficiency can reduce more carbon than maintaining the plants. He contends that 'baseload' power is not a grid requirement and that variable renewables are more resilient and cost-effective than central thermal plants.
Key insights
- Subsidies for distressed nuclear plants are based on a mistaken climate rationale; closing high-operating-cost nuclear plants and reinvesting those savings into energy efficiency can avoid more carbon than keeping the plants open.
- The concept of 'baseload' power is a description of how inflexible thermal generators function rather than a technical requirement for a reliable electric grid.
- Variable renewables may have lower grid balancing costs than central thermal plants, as evidence suggests wind's reserve costs per MWh are approximately half those of thermal generation.
- Central thermal plants are less resilient than distributed renewable resources; nuclear plants specifically can be 'anti-peaker' resources due to their inability to restart quickly after a shutdown.
- The author recommends that states use laddered auctions open to all demand- and supply-side options to value carbon-free attributes, rather than using policymakers' price guesses which are often wrong due to rapid price declines in solar, wind, and storage.
Cite the original document
- APA
- RMI (2017). Microsoft Word - FERCMemo24Apr2017 (3).docx. https://rmi.org/app/uploads/2017/06/RMI_FERC_Memo_2017.pdf
- Chicago
- RMI. Microsoft Word - FERCMemo24Apr2017 (3).docx. 2017. https://rmi.org/app/uploads/2017/06/RMI_FERC_Memo_2017.pdf.
- Wikipedia
- {{cite press release |author=RMI |title=Microsoft Word - FERCMemo24Apr2017 (3).docx |date=25 April 2017 |url=https://rmi.org/app/uploads/2017/06/RMI_FERC_Memo_2017.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{rmi2017microsoft, author = {{RMI}}, title = {{Microsoft Word - FERCMemo24Apr2017 (3).docx}}, publisher = {RMI}, year = {2017}, month = apr, url = {https://rmi.org/app/uploads/2017/06/RMI_FERC_Memo_2017.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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