Tax Breaks & Subsidies
Pace Global Energy Services, LLC (“Pace”) was commissioned by Delmarva Power and Light (“Delmarva”) to independently assess the economic impacts of the proposed Bluewater Wind off-shore wind farm (the “BWW Project”) on Delmarva’s Standard Offer Service (“SOS”) customers. The review undertaken by Pace was based solely on publicly-available information and data sources. The report can be downloaded by clicking on the below link.
The Independent Energy Producers of Maine (IEPM) commissioned the Brattle Group to prepare an analysis on retail rate trends and on the economics of utility cost-based generation in Maine. Brattle Group’s white paper was submitted to Maine Public Utilities Commission in regard to Docket 2007-317, an inquiry on reentry of electric utilities into the energy supply business. Appendix A of the paper details the "Economics of wind power in Maine".
This brief paper reviews and evaluates key aspects of energy policies and plans announced by New York State officials, and contrasts their electricity plans with those of the New York Independent System Operator (NYISO) which is responsible for the reliability of New York's electricity grid. Both sets of plans have major implications for the people of New York.
On Jun 12, MA DOER granted Hydro Quebec approval for 108MW of wind to be eligible for the MA Rec market. There is an additional 212MW of wind that is already operating and may soon follow. DOER's decision is attached. A number of folks familiar with the New England REC market believe this decision, to be followed by others, will seriously depress REC values.
DOE released its first Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2006 on May 31st, providing an overview of developments and trends in the U.S. wind power market. The report analyzes trends in the marketplace, including wind power prices compared to wholesale electricity prices, project costs, turbine sizes, and developer consolidation. It also describes the increasing performance of wind projects, current ownership and financing structures, and trends among major wind power purchasers.
The report notes that U.S. wind power capacity increased by 27 percent in 2006 and that the United States had the fastest-growing wind power capacity in the world in 2005 and 2006. For the second straight year, the United States led the world by installing 2,454 megawatts of wind power capacity in 2006—16 percent of the capacity installed worldwide that year—followed by Germany, India, Spain, and China. Leading the way in annual growth capacity in the United States are Texas, Washington, and California.
The work described in this report was funded by the Office of Electricity Delivery and Energy Reliability (Permitting, Siting and Analysis Division) and the Office of Energy Efficiency and Renewable Energy (Wind & Hydropower Technologies Program) of the U.S. Department of Energy under Contract No. DE-AC02-05CH11231. The authors are solely responsible for any omissions or errors contained herein.
Rube Goldberg would admire the utter purity of the pretensions of wind technology in
pursuit of a safer modern world, claiming to be saving the environment while wreaking
havoc upon it. But even he might be astonished by the spin of wind industry spokesmen.
Consider the comments made by the American Wind Industry Association.s Christina
Real de Azua in the wake of the virtual nonperformance of California.s more than 13,000
wind turbines in mitigating the electricity crisis precipitated by last July.s .heat storm..
.You really don.t count on wind energy as capacity,. she said. .It is different from other
technologies because it can.t be dispatched.. (84) The press reported her comments
solemnly without question, without even a risible chortle. Because they perceive time to
be running out on fossil fuels, and the lure of non-polluting wind power is so seductive,
otherwise sensible people are promoting it at any cost, without investigating potential
negative consequences-- and with no apparent knowledge of even recent environmental
history or grid operations.
Eventually, the pedal of wishful thinking and political demagoguery will meet the
renitent metal of reality in the form of the Second Law of Thermodynamics (85) and
public resistance, as it has in Denmark and Germany. Ironically, support for industrial
wind energy because of a desire for reductions in fossil-fueled power and their polluting
emissions leads ineluctably to nuclear power, particularly under pressure of relentlessly
increasing demand for reliable electricity. Environmentalists who demand dependable
power generation at minimum environmental risk should take care about what they wish
for, more aware that, with Rube Goldberg machines, the desired outcome is unlikely to
be achieved. Subsidies given to industrial wind technology divert resources that could
otherwise support effective measures, while uninformed rhetoric on its behalf distracts
from the discourse.and political action-- necessary for achieving more enlightened
Today, we adopt an interim greenhouse gas (GHG) emissions performance standard for new long-term financial commitments to baseload generation undertaken by all load-serving entities (LSEs), consistent with the requirements and definitions of Senate Bill (SB) 1368 (Stats. 2006, ch. 598).2 Our adopted emissions performance standard or “EPS” is intended to serve as a near-term bridge until an enforceable load-based GHG emissions limit is established and in operation.......
Under SB 1368, the EPS applies to “baseload generation,” but the requirement to comply with it is triggered only if there is a “long-term financial commitment” by an LSE. The statute defines baseload generation as “electricity generation from a powerplant that is designed and intended to provide electricity at an annualized plant capacity factor of at least 60%..........
Pursuant to SB 1368, the performance level of the EPS must be “no higher” than the emissions rate of a CCGT powerplant.11 However, the statute does not specify the emissions rate for a CCGT. Based on our review of emissions rates associated with a broad range of CCGT powerplants of varying vintages, we adopt an EPS emissions rate of 1,000 pounds of carbon dioxide (CO2) per
Editor's Note: This provides interesting insight into the rationale behind establishing 1,000 pds of CO2/MWh as an Emissions Performance Standard (EPS) for baseload generation. Please note that in Figure 1 "Net Emissions Comparison Data' the net emissions accorded 'wind electricity' should have been accorded to 'solar thermal with Gas Assist'.