Throwing Good Money After Bad

The above expression has always struck me as a bit esoteric.  Its an expression I have seen and heard a lot and yet the meaning of it never quite seems to fit the words themselves. The best definition I have seen of this expression is as follows:  "To spend more and more money on something that will never be successful."  The best example I have seen lately of this expression comes, not surprisingly, from our friends in the coal industry. 

It seems that Kentucky Power Company, a privately held power company serving the eastern counties of Kentucky has proposed spending $980 million of the public's dollars in order to update its 800 MW Big Sandy Power Plant near Louis, Kentucky in order to meet the recent regulations on air pollution which are finally being enforced by the Environmental Protection Agency (EPA). 

We have to admit that this is a good news/bad news type of story. The fact that coal-based utility companies are finally being held accountable for the tons of pollutants they have been putting into the atmosphere is a very good thing.  We are thrilled that the EPA is, at last, being allowed to do their job by the Obama administration given that they were completely hog tied during the administration of George W. Bush, the oilman. Still, nearly a billion dollars spent on a single power plant that will only be marginally less polluting after this is all done?  Isn't this a perfect example of throwing good money after bad, and in this case, a whole lot of good money?

I realize that a billion bucks probably is not what it used to be, but that's one thousand million dollars and that's still a pretty good chunk of change. Why isn't Kentucky spending that money on a renewable energy plant, either wind power or solar power, instead of trying to retrofit an old coal plant that has already seen too much use.  Kentucky has plenty of sun and given the incredible price drop in the cost of solar panels in the last couple of years Kentucky Power could build one heck of good solar power plant or wind farm for what its planning to spend to put lipstick on one very ugly pig! 

Solar has gone through an unprecedented decline in costs in recent years and solar plants are going up all over our country.  One big solar project currently under construction is the Topaz solar project in San Luis Obispo County, California.  This plant will be a 550 megawatt plant and will cost $1.2 billion to construct, only a little less than what Kentucky is proposing to spend just to clean up an already well aged coal plant.  The solar PV plant will put out no pollution, zero, have no significant environmental impact, will not contribute to global warming and will last at least 50 years.  When you look at all energy costs (see Dr. Paul Epstein's recent Harvard study on coal costs) the energy from a solar or wind plant will cost less than the energy from the coal plant. Moreover, solar photovoltaic plants are incredibly straightforward in design and require very few people to maintain them.  The maintenance costs alone would be a fraction of what they would be for a coal plant.   Wouldn't that be a better deal for the people of Kentucky!

The numbers are about the same if Kentucky were to look at building a modern Wind Farm instead of fixing an old coal plant.  Eastern Kentucky has plenty of wind resource.  A large wind farm could easily provide the same amount of electricity at less cost than coal. Costs for modern wind turbines have also gone under significant decline and the current cost of a megawatt of wind energy appears to be just a little over $1 million per megawatt.  That means that for a couple of hundred million less than they are now planning to spend to clean up the old coal plant Kentucky could have a totally non-polluting wind farm that would last much longer than a coal plant and produce the same amount of energy.  Once again, it would put out zero pollution, no contribution to global warming and could move Kentucky into the modern energy era. Once again, a better deal for the people of Kentucky!

There is a saying that there is nothing so powerful as an idea who's time has come.  I would like to believe that is true since renewable energy is definitely an idea who's time has come.  However, it may be the case that it has run up against an even more powerful force, the power of human inertia, the tendency of senseless humans to keep on doing what they have always done even when it no longer makes any sense.  The plans of Kentucky Power strike me as a perfect example of inertia.  They are going forward with spending massive amounts of public money on coal, even when coal no longer makes any sense, either for the people of Kentucky or the people on our planet. 

The time has come to realize that if we are really going to stop global warming we are going to have to do something about coal.  Coal is without a doubt the single biggest contributor to global warming.  It is not enough to build new solar farms and wind farms. If we are going to escape the ravages of a too warm planet, we must eliminate coal from our energy vocabulary.  To do that we have to stop throwing good money after bad and start replacing, not repairing, the thousands of coal-fired energy plants that are killing us and our planet.