What if renewable energy reduced our cost per unit?

Right now the debate on renewables in the United States is more of a when, than if, debate.  But when is always some day in the future.  Eventually the cost per unit of renewables will be lower than the cost per unit of fossil fuels.  But, we're not there yet.

Or have we just chosen not to go there yet?

Renewable Energy in Germany

Germany, as true with other parts of Europe, has been far more aggressive than the United States at pursuing renewable energy.  How well has their program gone?  Well enough that they are experiencing problems we haven't begun to fathom.  Consider this article from Der Spiegel which contains this interesting quote:

At least renewable energy sources have led to the price of electricity coming down on the markets, because they have displaced expensive conventional power plants.

In other words, Germany has passed the tipping point with renewables.  Their wind and solar now comes in at a lower per unit cost than their natural gas, coal and nuclear power.  

Interestingly, this economic push away from non renewables increases the salience of maintaining at least some traditional power creation.  Consider, for instance:

SPIEGEL: What do you propose?
Kohler: We have to make sure that operating power plants remains economically attractive. Nowadays, solar systems are often in operation around noon, when there is high demand for power and the price was high in the past. As a result, conventional power plants can no longer make enough money, which is why existing plants are being shut down and no new ones are being built. Anyone who guarantees the security of supply in the future has to be paid for it, even if his power plant is only needed at certain times.
SPIEGEL: Some receive subsidies for supplying green energy, while others are paid so that they'll be available in case it rains or the wind doesn't blow. It doesn't sound very market-based.
Kohler: It can indeed be organized in a market-based way throughout Europe by using so-called capacity markets. But that doesn't do any good. We have to synchronize the addition of more solar and wind energy systems with an expansion of the overall system, or the energy revolution will be a failure.

The remainder of the interview is a recommended read.  Germany, per this article, confronts two issues with renewable energy.  These are the natural asynchronicities of the timing and geography of supply and demand.  These are non trivial issues which  are certainly a necessity of a renewable based energy system.

While their problem is one we won't see for some time, we certainly would benefit from observing their approach to the problem as well as its solution.  What is more important, though, is realization that the challenge for renewable energy - at least in Germany - is not that "it's too expensive."