Energy companies have warned the government that unless they get £2 billion in "immediate" state aid several offshore wind farms will be scrapped - and this would leave Whitehall's pollution-reduction targets in tatters. Companies have put off giving the green light to several big projects, such as the £3 billion London Array in the Thames estuary and Npower's £2.2 billion Gwint y Mor farm off the coast of Wales, until the government decides whether it will stump up more cash to offset building costs that have doubled in the past three years.

Two major wind energy projects in New Brunswick have been put on hold indefinitely, putting a wrench in NB Power's plans to use significantly more wind energy by 2010. ..."It has made liquidity for capital projects scarce," said Eric Schneider, a spokesman for the company. Schneider said that it's "far more expensive to build and get financing in the market situation we're dealing with right now."

When the government's $787 billion economic stimulus package became law last month, the Bonneville Power Administration was one of the many beneficiaries. The federal utility wasted no time making use of its share, rolling out plans for a major transmission project ...The project now aims to provide service for 873 megawatts of energy - about 700 megawatts of that from wind power. That wouldn't have been the case seven years ago, he said.

Gov. Sarah Palin has trimmed back her support for renewable energy in the face of declining oil revenues, but the Legislature is still pushing forward with last year's proposed projects. ...Palin budget director Karen Rehfeld said the governor was still committed to renewable energy, but with next year's budget likely to have a significant deficit at estimated oil prices, it wasn't a good idea to take money out of savings for new spending now.

The stimulus package, while welcome, may not be a quick fix for the struggling wind and solar industries, experts say. The package is loaded with tax credit provisions that both industries have long sought ...and an option of converting tax credits from both industries into direct cash. In theory, that means the federal government could end up footing the bill for 30 percent of the cost of a wind farm or solar array.

California increasingly is depending on solar energy to meet its commitments to reduce greenhouse gas emissions under the state's landmark 2006 global warming law. According to regulators, utilities received 30% more bids for solar power projects in 2008 than in the previous year while wind farm proposals dropped by half and "very few" geothermal tenders were filed. The fact that utilities received 24,000 megawatts' worth of renewable energy bids last year (more than enough, if built, to meet the 33% renewable energy target) speaks to the frothy state of the market.

The state Senate refused Monday to re-open debate on Sen. Frank Kloucek's proposed tax break for noncommercial wind-energy systems. The legislation failed on the first attempt on Friday, when Lt. Gov. Dennis Daugaard broke a 17-17 tie by voting against it. An attempt to reconsider the bill on Monday fell short 17-18, as Sen. Jim Bradford, R-Pine Ridge, switched from yes to no.

The wind energy fight has blossomed into more of a battle than many had expected - especially among Democrats. ...critics argue that this amounts to a cash entitlement for the producers and is too expensive for the public. "Developers are racing to build wind turbines in the middle of Nowhere, USA, requiring extensive and expensive new transmission development, and we are not assured that the power generated will meet our load demands, given that wind typically produces off peak, at night, and in the winter," said Lisa Linowes of the Industrial Wind Action Group.

Citing a weakened economy and the prospect of new regulations for renewable energy, We Energies of Milwaukee has withdrawn its request to spend up to $69 million to coordinate construction of wind power projects to meet a state mandate. ..."In the months since the filing, economic conditions in the United States and Wisconsin have changed dramatically, and the potential for additional state legislation and for federal renewable legislation is coming into focus," the utility says in a letter to the PSC.

The green energy sector has a lot riding on 2009. Policymakers from Washington to Beijing have pledged billions of dollars in "cleantech" investment to jump-start the depressed global economy and create millions of new low-carbon jobs. ...As with the solar industry, wind power has been hit by a sudden slowdown in private sector investment as credit has dried up and the price of oil has fallen from its mid-2008 high. The industry hopes public spending will help fill the gap until the global economy gets back on its feet.

Oregon taxpayers are shelling out tens of millions of dollars to subsidize green energy projects, making the state a magnet for solar and wind companies. But an investigation by The Oregonian shows that the money also is going to risky ventures with questionable environmental benefits and to prosperous companies that need no incentives but are cashing in anyway. ..."It's gotten out of hand," says Chuck Sheketoff, director of the Oregon Center for Public Policy, which studies the impact of state tax policies on low-income residents. "It's being scammed. It's not serving its purpose."

Hundreds of thousands of consumers are being misled by the green tariffs offered by power companies to boost renewable energy, says a report due out this week. The tariffs do virtually nothing to promote new renewable supplies and can be costly and confusing, according to the Carbon Accountability Programme, set up by environmentalists in Edinburgh. It accuses the six leading power companies of using "greenwash" to make their products seem more attractive.

The GAO found that the cap-and-trade scheme sucessfuly created a working carbon market, "but its effects on emissions, the European economy, and technology investment are less certain." The report noted that the use of carbon offsets can "undermine the system's integrity" because there is no way to ensure that the projects invested in would not have been built anyway, or that they will last long enough to reduce the amount of emissions that they are expected to reduce. Carbon offsets, the report concluded "involve fundamental tradeoffs and may not be a reliable long-term approach to climate change mitigation."

Illinois Attorney General Lisa Madigan's office has declined to give an opinion about the legality of expanding a jointly-owned enterprise zone in Tazewell County, State's Attorney Stewart Umholtz said Friday. Umholtz requested an opinion from Madigan's office several months ago ...But Umholtz said the issue isn't quite over for him. "This is an issue of statewide importance," he said. "I'm still trying to encourage state government to follow state law."

A crucial argument about the best way to combat global warming comes down to two alternatives that may seem deceptively simple: • Force utilities to make a certain percentage of electricity from renewable resources, such as solar and wind. • Make utilities pay a stiff fine for the greenhouse gases they produce from coal and natural gas, then let the utilities figure out the most economical way of reducing their emissions. ...The debate boils down to three key points: Are renewable standards the best way to deal with greenhouse gases? How expensive are renewables, particularly in the Southeast? And what's the best renewable for Florida?

After two months of fever-pitch debate over how to deal with the soaring price of oil, Congress left town Friday without doing anything on energy. The final day featured a group of raucus Republicans who remained on the House floor after an adjournment vote was passed, the microphones turned off and the lights dimmed, demanding that Democratic leaders return and take action on comprehensive energy legislation.

The average residential Delmarva Power customer could end up paying just 70 cents a month more over the next 25 years for Bluewater Wind's power than they would have paid for fossil-fuel generated electricity, a team of state consultants said Thursday. The projection is significantly lower than the $6.46 a month "wind power premium" the consultants projected in a December analysis of the previous proposed contract between Bluewater and Delmarva, which would have had Delmarva buy twice as much wind power. ...Under the new, smaller contract, Sheingold estimates the average monthly additional cost on a residential customer, averaged over 25 years, will be 70 cents. In the early years, those additional costs will be an estimated $1.79 a month over market, and over time, will turn into a savings as fossil fuels get more expensive.

Amid voter frustration over record-high fuel prices, U.S. Senate Democrats plan to bring up on Tuesday legislation that takes aim at oil companies, speculators and the Organization of Petroleum Exporting Countries. The vote marks the Democratic party's most comprehensive response to rising gasoline, jet fuel and diesel prices, and will kick off a debate that is expected to last at least until the presidential elections in November. Republicans are expected to block the plan ...The U.S. Senate is also voting this week on whether to proceed with a tax bill that would extend tax credits for projects to generate energy from solar power, wind, and other sources of renewable energy.

A local company has lost out on part of a $45 million project in the Midwest because federal tax incentives for renewable energy sources - an integral part of the economics of all renewable energy projects - are set to expire on Dec. 31. Roughly $200 million invested in two Pittsfield projects that would produce up to 50 megawatts of energy and 50 million gallons of biodiesel is also likely to be affected. Two wind turbine projects in North County that would collectively produce nearly 38 megawatts of energy could also face significant funding obstacles. ...If the extension fails, Fairbank, of EOS, said, on Jan. 1, "the industry just takes a massive blow because you just can't make the economics of these projects work without incentives."

Released Tuesday, the 443-page Energy Report 2008 shows state and local subsidies of $1.4 billion on energy produced in Texas, plus a similar amount of federal subsidies for Texas energy. ...[Texas Comptroller Susan] Combs said Tuesday that subsidies can have unintended consequences -- especially when policymakers favor "winners" by providing greater subsidies for one fuel source over another. "Such assistance must be applied carefully," the report says. "Public policies that attempt to pick winners in the race for new energy technologies are an inefficient way to achieve policy goals and run the risk not only of wasting taxpayer money but also of directing private investment away from more promising use."