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Impact on Economy and Energy Policy
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Solar and wind now are the darlings of "new green economy" advocates for producing solar panels and wind turbines are supposed to replace lost manufacturing jobs from industries such as steel and automobiles. Never mind that solar energy has been shown to have only limited applicability and that the best wind farm in the world only operates 30% of the time. American taxpayers would be better served by being told the truth by politicians, rather than the economic nonsense that surrounds the hype regarding the green economy.
Frequent negative power prices in the West region of ERCOT result from wasteful renewable power subsidies
November 20, 2008 in Knowledge Problem
November 20, 2008 in Knowledge Problem
The negative prices appear to be the result of the large installed capacity of wind generation. Wind generators face very small costs of shutting down and starting back up, but they do face another cost when shutting down: loss of the Production Tax Credit and state Renewable Energy Credit revenue which depend upon generator output. It is economically rational for wind power producers to operate as long as the subsidy exceeds their operating costs plus the negative price they have to pay the market. Even if the market value of the power is zero or negative, the subsidies encourage wind power producers to keep churning the megawatts out.
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Texas]
High costs aren't the only problem facing New Yorkers. They also must worry whether the lights will stay on. Recently, the state's power-grid operator predicted looming shortages unless the state builds more power plants over the next decade to meet rising demand. That's no easy feat. With the 2003 expiration of Article X of the Public Service Law, which streamlined the permitting process for building large power plants, it now can take more than five years for a proposed plant to get built. Consequently, few investors are lining up to build the plants New York needs.
The Spitzer administration favored an extension of Article X but with a green twist. The law, Spitzer said, must exclude nuclear and coal-fired plants. Such provisions may please environmental groups, but it won't do anything to help add the 2,750 megawatts needed to maintain the reliability of the New York grid by 2017.
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New York]
Evidence is everywhere, though, that the population of California is growing and will continue to grow into the foreseeable future. If we do not create more energy, the per capita amount available will decline. ...Proposed alternate sources of energy - wind, solar or bio-sourced - have their virtues and their shortcomings. To imagine that they would somehow supplant current sources of energy or might be sufficient to supply future demand, is the product of a fervent puerile imagination. (The technical term for this kind of thinking is "scientific sciolism,") ... To date, the execution of the alternate energy resource program has distorted market realities, causing consumer prices to go up directly and indirectly.
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California]
We applaud any effort to offer incentives to increase the use of renewable and alternative energy sources to power Michigan.
But we hope the 25-percent goal can be reached by offering incentives, not by issuing mandates. The cheapest source of energy in the United States is coal. For the time being, at least, renewable sources of energy are a more expensive alternative. It would not bode well for economic development in Michigan if the state had astronomical energy costs.
In the Williams/Whitcomb world of tabloid journalism, there is no room for thoughtful discussion, for weighing costs against benefits, for understanding that self-interest is at work on both sides of the issue or for any kind of honest discussion. Such thoughts would get in the way of the facile thinking and cynical blather that fills their book and that is now commonplace on TV, radio and the Internet. Do you find yourself bored now that Don Imus and Rosie O'Donnell are off the air? Does the Internet no longer meet your need for trash talk? Then read this book. You won't learn anything substantive from it, but it'll be great entertainment.
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Massachusetts]
The Long Island Power Authority's proposal to build a grid of industrial-strength wind generators a few miles into the ocean off Jones Beach is adrift. It's too expensive, and it should remain at sea.
Proposals to reduce global carbon dioxide emissions by 80% over the next few decades would put US companies at a competitive disadvantage, cost millions of jobs, and add $2000-4000 to the average American family's annual bill for electricity, gasoline, food and other basics, say government and other studies. Other developed countries would suffer similar fates.
Moreover, all this pain would bring no gain in the climate change arena. Ice core and temperature data covering thousands of years clearly show that planetary temperatures rise first and, 400 to 800 years later, atmospheric carbon dioxide levels increase. Temperatures fall and, centuries later, CO2 levels decline. Even Al Gore's own temperature-and-CO2 graph demonstrates this.
Warm oceans release trapped CO2, while colder seas absorb the gas, in cycles controlled by changes in solar energy and cosmic ray output, shifts in the Earth's orbit and other natural forces.
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General]
If we are to spurn the nuclear option, or indeed if we are to embrace it, we must do so only once we have taken all aspects into account. Rigour and honesty is required, too. We must accept the relevance of the subsidies that wind power receives, and the low carbon nature of nuclear energy.
We hope other Virginia localities watching these proceedings will profit from learning that currently unreliable wind power is green only for those who are allowed to siphon off government money at taxpayers’ expense and that as this high-cost energy is fed back into the grid, it will result in higher, not lower, electric bills for users. And we hope the cumulative anguish of Highlanders expressed during the hearings will give other decision-makers pause when they consider the real costs of wrongly-sited wind power.
Wind power is an idea that is appealing to the imagination. It sounds like a "free" source of energy that would be non-polluting and stable in cost. I am an optimist, and I love technology. If I thought for one moment that windmills would be a source of low cost energy, I would be building them. The reality is quite the contrary--wind power is wasteful of human and natural resources.
We cannot lose sight of Vermont's distinctive place in the
world with its open spaces and gorgeous vistas. It is up to us to
continue the legacy. Real jobs, real lives depend on it.
Everyone probably agrees with the fundamental goal of the legislation --
to protect Vermont's fragile environment by increasing the use of clean
energy. But before lawmakers rush into mandates, they must ensure the
measure doesn't inadvertently harm the economy or the landscape.