Opinions
Category:
Tax Breaks & Subsidies
Let's confront an inconvenient truth. Wind turbines on Hutchinson Island will not work. What makes this statement more shocking is that Florida Power & Light is well aware of this.
Then what could motivate them to proceed with a major project that will destroy the natural habitat, kill a multitude of birds, disrupt the environment, do damage to the infrastructure, and go against the wishes of the residents of Hutchinson Island?
The answer is quite simple.
Money. ...I personally cannot think of this practice being anything less than economic terrorism.
This one is about corporate tax avoidance through massive tax subsidies lobbied for by Enron, which was the largest wind developer in the United States before its demise and which pioneered the tax shelter as a commodity. FPL Group paid zero federal income tax in 2002 and 2003 despite more than $2 billion in profits, largely because of the wind projects of its wind subsidiary, FPL Energy, according to Citizens for Tax Justice.
But, now it has gotten so bold that it is proposing putting wind turbines where we don't have sufficient winds to get close to the 30 mph required to reach the turbines' rated capacity.
Destroying environmentally sensitive lands on Hutchinson Island and the quality of life for people in a populated area for an industrial wind plant is like burning down rain forest to build a solar farm.
Also filed under [
Florida]
The great wind scam's profitability is equalled only by its futility
February 9, 2008 in The Telegraph
February 9, 2008 in The Telegraph
It is six years since I first referred here to "the great wind scam" - the bonanza enjoyed by the developers of wind turbines, thanks to the hidden subsidy we all give them through our electricity bills. Under the Government's Renewables Obligation, they receive twice as much for such electricity as they produce as the owners of conventional power stations: a 100 per cent top-up which makes our wind energy the most heavily subsidised commodity in history.
Also filed under [
UK]
Few might guess, from the two-dimensional reporting of these plans in the media, just what a gamble with Europe's future we are undertaking - spending trillions of pounds for a highly dubious return, at a devastating cost to all our economies.
The targets Britain will be legally committed to reach within 12 years fall under three main headings. Firstly, that 15 per cent of our energy should come from renewable sources such as wind (currently 1 per cent). Secondly, that 10 per cent of our transport fuel should be biofuels. Thirdly, that we accept a more draconian version of the "emissions trading scheme" that is already adding up to 12 per cent to our electricity bills. The most prominent proposal is that which will require Britain to build up to 20,000 more wind turbines, including the 7,000 offshore giants announced by the Government before Christmas. To build two turbines a day, nearly as high as the Eiffel Tower, is inconceivable. What is also never explained is their astronomic cost.
Also filed under [
Energy Policy|
UK]
At the end of 2007, the WilderHill New Energy Global Innovations Index (NEX), a composite of 86 new energy companies covering wind, solar, biofuels, efficiency, and hydrogen, was up by 58%, year-on-year. As of yesterday, however, it was off almost 20% for 2008 so far, compared to a drop of about 8% for the S&P 500. Why would a sector so favored by politicians, environmentalists, and socially-conscious investors suddenly appear to have diminished prospects, just when it seemed perfectly geared for growth? Unfortunately, renewables and the entire alternative energy sector are vulnerable to two of the same principal factors undermining confidence in the economy as a whole: the availability of credit and higher inflation at the wholesale level.
Also filed under [
Impact on Economy|
USA]
If you thought the 2008 presidential race was shattering all records for windy rhetoric, it's nothing compared to the political eco-rhetoric being spun to US taxpayers -- to get them to cough up billions of dollars to fuel a renewable wind power industry boom sensible investors won't touch with a turbine's rotor blade. ...Wind power sounds a great European success story -- one to be echoed in the US, it seems, as 2008 is set to see wind power developments shatter records for the fourth consecutive year. However, a closer look at the European "success" story reveals that all is not quite as it seems. Wind seems to be blowing in the mind of the politically correct and those on the recent environmentalist bandwagon but the cost is going to be huge, no companies will plunge into it without massive government subsidies and, if actually built, power reliability will take a nosedive. ...The bottom line is that the renewables debate, and investment in it, is as much about ideology and political belief as it is about economics and environmental issues. When the real cost of turbine power as a major player toward our future power needs is assessed, the answer just ain't "blowing in the wind".
When there is considerable debate over future financial prospects of an industry, it's hard to argue over the present value of an asset.
But some Scottish & Southern Energy investors are bound to raise eyebrows over the €1.46 billion it's just paid for wind-farm operator Airtricity.
After all, it costs roughly £1 million/MW to set up a modern windmill. Airtricity has 600 MW of assets built up and permission to build another 963 MW of assets. Which means that if Scottish & Southern had set up the mills on its own, it would have cost roughly £1.6 billion. In buying Airtricity, it's now likely to end up paying nearly £3 billion. Scottish & Southern has warned investors the deal won't enhance earnings until 2011.
Scottish & Southern's problem is the scarcity value of wind-power assets as the EU's energy policy makers have set a renewable-energy target of 20 per cent of total supply by 2020. The UK has a self-imposed target of 10 per cent by 2010.
According to an article printed in the Deseret Morning News on Dec. 21, the wind farm planned for the Milford area will receive tax subsidies from the state of Utah to the tune of $4.3 million. Since all of the electric power from this subsidized project will be sent to California, it is akin to exporting Utah money, by wire, to the Golden State.
Also filed under [
California|
Utah]
Energy investments - Not risk-free; Wind power has potential, but ratepayers shouldn't bear entire weight of developing it
December 5, 2007 in The Capital-Journal
December 5, 2007 in The Capital-Journal
Let's face it: Most homeowners don't buy wind generators or solar energy systems simply for environmental reasons.
They make the investments because they're banking on a payoff in the form of lower energy costs.
Westar Energy is no different in wanting a bang for its green-energy bucks, which is why it's seeking a rate increase to support an $830 million wind energy project.
But just how much of a payoff should Westar receive? And at what risk? ...To some extent, it's reasonable to place the cost of wind power on the shoulders of ratepayers. After all, wind could provide Kansans with an abundant, environmentally friendly energy source to offset the cost of fossil fuels.
Westar and its stockholders should be given the chance to obtain a fair return on the company's investment. At the same time, though, the company bears a responsibility for keeping cost increases to a minimum for its customers.
A state consumer agency is demanding to know whether Gov. Kathleen Sebelius and her lieutenant governor have tried to influence state regulators who are about to decide how much consumers will have to pay for wind power from Westar Energy.
The concern stems from a once-confidential memo written by the former chief executive of Westar Energy indicating that Sebelius and Lt. Gov. Mark Parkinson influenced utilities to pursue large-scale wind power by promising they would be "fully compensated" for any added costs of building wind plants.
Regulators recently dealt a serious blow to a proposed offshore wind farm in Delaware, criticizing the plan as too financially risky to consumers. ...what's significant about the news from Delaware is that the Public Service Commission used a team of independent consultants to determine the project's costs and their effect on consumers.
That's not the case with the Cape Wind project. So far, the developer has refused to provide financial data that would help the public consider the definition of economic viability. As a result, how can the public fully consider the project if it does not have the appropriate economic information on which to judge it? The point at which the project becomes economically viable is critical to the public's consideration of the project as this private venture seeks to use public lands. ..."After six years of 'exhaustive' review of Cape Wind, we are still getting stonewalled," said Mark Forest, Delahunt's chief of staff.
Also filed under [
Impact on Economy|
Massachusetts]
Some Franklin County legislators were angry when the final tax-break agreement was reached for the Noble Chateaugay Windpark and Noble Bellmont Windpark.
During talks to determine how much Noble would pay taxing jurisdictions in lieu of full tax value, the Franklin County Industrial Development Agency, each township and the Chateaugay Central School District had representatives there, but no one apparently represented the county. ...We would seem to be in the middle of a jurisdictional collision. Individual taxpayers may compute or consult their tax bills to see where their allegiance lies, but, when the negotiations are eventually concluded, all parties should realize that the interests of those taxpayers are more important than it is for any of the boards to look good to their constituents by having forged the best deal.
This very much needs to be a cooperative arrangement.
Also filed under [
New York]
In fact, nothing is going to raise our electricity rates faster than the installation of wind power. It is the most inefficient and overpriced form of power currently being flogged to consumers by "green-posing" politicians and profit-hungry wind developers.
The real cost of wind power is staggering when you add it all up. ...Higher costs might be socially acceptable if wind could actually replace coal-fired generation, but it can't. Wind power is unpredictable and will always require backup from a reliable, on-demand, source. ...Beyond the direct costs of wind power, we must also factor in the socioeconomic and ecological costs. Foremost among these is the loss of property values, which reliable estimates suggest is about 30 percent, on average, for those unfortunate enough to become wind farm neighbors. ...Due to deceptive government legislation, the high costs of wind power are being temporarily concealed from consumers in order to encourage its public acceptance. But don't be fooled;
Democrats in Congress are huddling in their low-carbon-footprint backroom in search of a compromise energy bill, and all eyes have been on the issue of raising fuel-economy standards. ...the bill undermines energy independence by raising taxes on domestic production and throwing up new barriers to exploration. ...But its worst (and little noticed) provision may be a requirement that 15% of U.S. electricity be generated from "renewable" sources by 2020. Utilities that can't meet these goals are fined -- taxed, really -- based on how far short of this Eden they fall. Currently, only about 3% is provided by such renewables as wind, solar or "biofuels." ...The "renewables" mandate in the House energy bill, by contrast, is a multibillion-dollar stealth tax on electrical utilities, and ultimately on electricity users. The danger is that, with all eyes on car-mileage standards, this tax could become law without many people even noticing.
Wind power is not the answer to global warming. Do we have alternatives? We certainly do have alternatives to windmills but they would disrupt the lifestyle of electors and consumers. In Paris, an article in the September 2007 issue of the medical journal, The Lancet, shows with supporting calculations that it would be better to minimize human consumption of meat, for 80% of agriculturally produced methane comes from farm animals. Wind turbines won't even alter the greenhouse gas equation but by a mere .03%, as mentioned above. The way to reduce CO2 emissions and other greenhouse gases is to use less energy. Governments must massively invest in energy conservation measures rather than in these wind machines. According to another research, if every English household switched for one single low energy light bulb, a fossil fuel-burning electrical plant could be shut down!
Wind power would only be interesting if energy produced can be stored. It has been proposed to fill reservoirs of large hydroelectric dams, for example. An Australian method has just offered in September 2007 to store electricity in liquid accumulators. Quebec would thus be able to utilize wind energy because the major part of our electricity comes from hydroelectric dams, which is not the case for Ontario or New York where, as almost everywhere else in the world, wind power must be backed up by carbon-based generating stations.
JEFFREY Corrigan of Broadview Energy company (letters, October 5) should tell us how many megawatts of electricity the proposed turbines at Westnewton will produce.
It is high time these energy company representatives stopped all their "spinning" about how many houses will be supplied by these industrial monsters.
I am disgusted by fly-by-night companies installing wind turbines and solar panels just to showcase technology (see "This Wind Turbine Should Be Turning") or because they are heavily subsidized by government tax credits. Tax incentives are meant to stimulate growth of the renewable energy sector, not feed faux energy companies who don't have a clue. If a renewable installation cannot provide return on investment without a tax crutch, the project is not viable to begin with and should not be allowed to proceed.
Stories of questionable "carbon offset" sales schemes keep blowing in. ...It's beginning to sound like multiple sightings of the emperor's lack of clothing. Perhaps one problem lies in the ambiguity of the term "carbon offset" itself -- which smells of an Orwellian pollution of the English language.
After all, when you buy "carbon offsets" that doesn't necessarily mean you're paying for a reduction in carbon dioxide pollution. You could be sending payments to a utility company that might (or might not) use your money to help build a wind turbine that might eventually generate a small amount of electricity -- as it continues to build more coal-fired power plants that spew even more greenhouse gases.
But that's the magic of the word "offset" -- it doesn't promise a reduction. It doesn't really promise anything.
Offshore wind farm too costly; solar power a wiser investment
September 5, 2007 in Asbury Park Press
September 5, 2007 in Asbury Park Press
Wake up, New Jersey, before more of your tax dollars are wasted on Gov. Corzine's offshore wind farm. ...In these hard financial times, our state and federal governments need to invest taxpayer dollars more wisely than they have. Alternative energy sources are needed, but they must make financial sense. Windmills on land are borderline cost-effective, and that's only because of energy subsidies. Windmills in the north Atlantic never will come close to recovering their cost.
If something doesn't make financial sense, we should be looking at who will benefit from its construction. New Jersey citizens will not benefit from this ocean wind farm. Electric costs will rise because of it. Someone needs to follow the money to see who will benefit.
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