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Tax Breaks & Subsidies and Energy Policy
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We were promised activity and updates on the important but open aspects of a decommissioning plan and a transmission line alternate route through the town of Hounsfield. When eight Jefferson County legislators voted yes to allow tax breaks, we all feared that our leverage was lost and a bad deal was just made worse.
Also filed under [
New York]
Friends and neighbors, I write as a Clarendon resident, and not in my role as Select Board chairman. The people of Clarendon and the towns surrounding it are trying to understand what the Vermont Community Wind Farm project is all about. What will it mean for us? What impacts will it have on us? Why here and now?
What has brought trouble to our town's doorstep is "easy" money.
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Vermont]
As I was catching up on a large backlog of articles from December, I ran across one from the New York Times that dovetailed with my thoughts about trends to watch this year. It concerned the difficulties being experienced by US green energy companies, particularly relative to competitors operating in countries with more generous subsidies for renewable energy manufacturing and deployment. Instead of becoming progressively less dependent on help from the government, many of these firms are even more reliant on aid.
Wind power too expensive and unreliable to invest in right now
October 19, 2009 in Portland Press Herald
October 19, 2009 in Portland Press Herald
The romantic view of wind power is a stand of wind turbines atop a ridge gently spinning in a breeze generating clean electricity in place of an emission-producing power plant.
Another view is a natural landscape defaced by huge structures whose operation annoys its neighbors, produces power randomly and does not reduce pollutants because fossil-fueled plants continue to operate as backup.
The "pop" culture support and promotion of wind power is all based upon conceptual or theoretical constructs which do not reflect the physical, financial or regulatory realities of operating our electric grid system.
Also filed under [
Maine]
While wind farms run out of puff our bills will build up a head of steam
October 9, 2009 in Telegraph.co.uk
October 9, 2009 in Telegraph.co.uk
Cash-strapped Britain is now facing a looming energy gap, priced yesterday by Ofgem at up to £200bn. This is the sum that may be required to build new energy infrastructure while meeting environmental targets.
Who pays, you wonder. Well, you do, with the pain intensifying around 2015 when Britain shuts down its most polluting coal-fired power plants and our old nukes. Then, household bills could jump by 60pc - enough to make anyone's hair stand on end.
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UK]
Investment bankers are all aflutter with the onset of stimulus money for renewable energy projects according to the August 31 Wall Street Journal. After a long lag, numerous firms have again invested upwards of $100 million in wind farms. Investors are attracted by the quick returns made possible by the hefty federal grants and tax benefits.
The growing subsidies for wind power mask wind's high cost and inherent limitations, but only for so long. ...Although appealing to many, wind power is an extremely expensive, inefficient, and unreliable source of electricity, incapable of providing base load power. Wind's intermittency, variability, line loss, necessary back-up generation, transmission needs, and dispatch complexity limit the amount of electricity wind can secure.
The tax-dodging Treasury secretary and the chief of the unconstitutional department of energy announced more than half of a billion dollars in unconstitutional government handouts to energy companies this week, most of which will go toward expensive, inefficient wind power through a foreign-owned company. And this is just the "first round."
Under the guise of "creating jobs" and "clean energy," this portion of the $54 billion allocated for energy in the "stimulus package" is expected to eventually siphon more than $3 billion from the productive economy - killing a great number of jobs in the process.
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USA]
Bad governance yields largest tax bill in history
June 28, 2009 in Washington County Independent Examiner
June 28, 2009 in Washington County Independent Examiner
Friday, in a text book example of bad governance, the House of Representatives passed by the slimmest of margins what is believed to be the largest tax bill in United States history. Not a single one of the 219 representatives who voted for it knew exactly what was in the bill.
The major part of the bill is its Cap and Trade provisions.
Also filed under [
USA]
Last week, the Legislative Budget and Audit Committee (LBA) quietly approved $100 million in taxpayer money to be used for a collection of renewable energy projects funded through the Alaska Energy Authority (AEA). Shockingly, lawmakers approved the money just hours after the Division of Legislative Audit released a report that raised serious questions about AEA's due diligence in determining the economic viability of these speculative projects.
The report found that four out the five randomly selected energy projects they reviewed showed "there is a higher than necessary risk that the projects will not be successful."
Also filed under [
Alaska]
Blowhards: The fabulous debate over wind power on Nantucket Sound
January 24, 2009 in Wall Street Journal
January 24, 2009 in Wall Street Journal
Green energy has been on the subsidy take for years, including in 2005 when Mr. Delahunt was calling for "an Apollo project for alternative energy sources, for hybrid engines, for biodiesel, for wind and solar and everything else." The reality is that all such projects are only commercially viable because of political patronage.
Tufts economist Gilbert Metcalf ran the numbers and found that the effective tax rate for wind is minus-163.8%. In other words, every dollar a wind firm spends is subsidized to the tune of 64 cents from the government.
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USA|
Massachusetts]
Babcock and Brown Wind is formally cutting its ties with the Babcock and Brown funeral procession but the spirit of the financial engineers still blows hard through the wind farm owner - and perhaps not to the benefit of shareholders.
...BBW's rationale for putting its best wind farms up for sale last year was bemusing from the start. Basically the management would have shareholders believe they were ''selling the farm to prove the farm was worth owning''. BBW phrased it slightly differently, saying it was out to ''demonstrate and capture value''.
Also filed under [
USA|
Australia / New Zealand]
Also filed under [
Canada]
Must we destroy the environment in order to save it? In the province of Ontario, the answer seems to be "yes."
This month, the Liberal provincial government of Dalton McGuinty will finish drafting its proposed Green Energy Act. The Act's early drafts call for a big increase in renewable energy production in Ontario. Sounds nice! How do we get there?
The plan contains two big elements: (1) a huge cash giveaway and (2) a brusque slap-down of local democracy.
Also filed under [
Canada]
The domestic auto industry isn't the only uncompetitive industry that seems to require life-sustaining transfusions of government cash to stay in business. Alternative energy sources have relied on such subsidies, called "investments," for years.
Yet in President-elect Obama's announcement of his energy team, we were told "the foundations of our energy independence" lie in "the power of wind and solar." ...After decades of tax credits and subsidies, wind provides only about 1% of our electricity. By comparison, coal provides 49%, natural gas 22%, nuclear power 19% and hydroelectric 7%.
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USA]
The likes of wind farms and other similar ventures have always been seen as more of a headline grabber in the UK rather than a real alternative for the future. The authorities have given minimal tax incentives for companies to get involved and there have even been complications with getting them connected to the national grid. All in all the alternative energy market has been launched and re-launched on many occasions but it is just not working.
Also filed under [
UK]
Gradually, the message is beginning to sink in. With wind farms already growing in unpopularity, people are now waking up to the gigantic scale of the rip-off being perpetrated. As more and more people begin to understand this, it should only be a matter of time before the whole programme crashes and burns.
But, there is one minor problem ... wind energy is an EU-supported obsession. To stop the scam, we have to confront the EU. Is there a politician brave enough to do this?
Also filed under [
UK]
Pickens' plan is basically a couple of pie charts showing how he'd like to see the U.S. energy economy work. ...He gives no specifics publicly, but he's made it clear that it's up to Congress, not consumers or investors, to make this vision become reality.
Because Pickens has announced his gambit in the name of the environment, the media have dropped the skepticism they usually apply to the claims of businessmen trying to make a buck. Because his plan involves government - meaning you and I pay the costs - that skepticism ought to be even greater.
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USA]
If wind energy were a sensible economic investment, it would not need federal and state subsidies already in place or the additional subsidies inherently needed in the wind power expansion directly and inferentially sought after by Pickens. Similarly, if compressed natural gas (CNG) vehicles are really an economically viable alternative to conventional gasoline-powered vehicles, they would have succeeded in the market place and no government subsidy would be necessary.
We can wish T. Boone Pickens well in his wind energy business, but there is no reason for taxpayers, ratepayers or consumers to pay him for his investments.
As the Senate opens debate on its mammoth carbon regulation program this week, the phrase of the hour is "cap and trade." This sounds innocuous enough. But anyone who looks at the legislative details will quickly see that a better description is cap and spend. This is easily the largest income redistribution scheme since the income tax. ...If Congress is really going to impose this carbon tax in the name of saving mankind, the least it should do is forego all of this political largesse. In return for this new tax, Congress should cut taxes elsewhere to make the bill revenue neutral.
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USA]
Watermelons - people who are "green on the outside and Red on the inside" - refuse to believe renewable-energy technologies may never be capable of replacing oil and natural gas, but it doesn't stop them from sowing their fantasy seeds. ...Even with massive subsidies, renewables can't come close to competing with oil and gas; without them, they'd be dead in the water. Though wind and solar have been on the "subsidy take" for decades, the Journal notes, they produce less than 1 percent of America's electricity; nuclear, meanwhile, generates 20 percent but is subsidized 15 times less.
Believing all renewables, let alone just wind, will produce 20 percent of America's power anytime soon requires a leap of faith only fools would attempt.