Opinions
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Impact on Economy
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Misconceptions of the green economy before Copenhagen climate summit
November 22, 2009 in The Gov Monitor
November 22, 2009 in The Gov Monitor
Throughout this dismal year, President Obama has promised that upwards of 5 million jobs would result from a huge injection of investment in alternative energy technology. The green jobs proposal was also the lynchpin of the European Union's alternative energy legislation, dubbed the "Community Strategy and Action Plan: Energy for the Future." Its goal: create a job boom by funding massive new investments in renewable energy.
So far, we're left with sizable handouts, no coherent vision, few concrete results, and lots of speeches.
Also filed under [
Impact on Economy|
USA]
The rush to America of foreign wind-turbine manufacturers shows that the Obama administration's plan for stimulating the creation of green-energy jobs is going in an odd direction.
Two weeks ago, U.S. Renewable Energy Group, led by Dallas investor Cappy McGarr, announced plans to build a $1.5 billion wind energy farm in West Texas. About a third of the money would come from federal stimulus funds. ...There would be perhaps 330 jobs created in Texas. Most would be temporary construction jobs. Meanwhile, thousands of Chinese workers in the northeastern industrial city Shenyang would build the labor-intensive turbines.
At a public hearing on the Galloo Island Wind Farm payment-in-lieu-of-taxes deal, no one from the town of Hounsfield raised a voice in support of or in opposition to a plan that will bring $2.14 million annually to the county, town, Sackets Harbor Central School and Jefferson County Industrial Development Agency. You have to wonder why. ...Add it all up, and you can see just how much this "private sector" developer will rely on federal, state and local taxpayers to permit him to make profits. Especially galling is the extent to which local officials, especially the IDA, are doling out hard-won tax dollars to bring, at best, a handful of jobs to the region, and a short-lived flurry of construction money.
Also filed under [
Tax Breaks & Subsidies|
New York]
Jefferson County homeowners, dairy farmers and small businesses will pay the price in higher taxes to subsidize tax breaks for developers of the Galloo Island Wind Farm under the terms of a tax agreement worked out with the Jefferson County Industrial Development Agency. ...It's a lousy deal for taxpayers, and it gets worse.
PILOTs and other preferential treatment for developers are meant to foster job growth, but the wind farm will generate a handful of permanent jobs beyond the short-term construction work.
Also filed under [
Tax Breaks & Subsidies|
New York]
At a public hearing on the Galloo Island Wind Farm payment in lieu of taxes deal, no one from the town of Hounsfield raised a voice in support of or in opposition to a plan that will bring $2.14 million annually to the county, town, Sackets Harbor Central School and Jefferson County IDA. You have to wonder why.
The deal, after all, will give the wind farm an 85 percent break on taxes that would be due without the PILOT. On an assessment of $400 million (the project will cost at least $500 million to build), from a total property tax bill of $14.52 million, the school district alone would receive $8.9 million dollars a year.
Also filed under [
Tax Breaks & Subsidies|
New York]
Perhaps some will remember that FSU received a much ballyhooed Maryland grant to study the performance of a wind and solar apparatus built several years ago on the campus.
But where is the data showing how this project fared over the last 18 months? How much fuel did the campus save? What were the annual capacity factors? How much energy did the systems provide at peak demand times? Such data and more should have been presented so that the public would know how this equipment really performed.
Now, thanks to the nation's taxpayers - the source of the DOE grant - here we go again, onward and upward in the name of energy du jour.
Also filed under [
Tax Breaks & Subsidies|
Maryland]
Too clever for his own good?
That might be the case for Energy Minister George Smitherman, who aims to turn Ontario into a renewable-energy superpower and create thousands of green-collar jobs.
Both are great ideas. But a deal being made on the sidelines could undo much of what Smitherman and the Liberal government are trying to accomplish.
US wind turbines: Blame the Europeans - Or, blame the shortcomings of policy.
October 30, 2009 in Financial News
October 30, 2009 in Financial News
But if US wind turbine manufacturers want another foreign renewables contingent to worry about, there's always the Europeans. A study by non-profit group the Investigative Reporting Workshop found that 84 per cent of the $1.05bn handed out by the US government since September 1 has gone to foreign companies - mostly European.
It's not an overwhelmingly surprising finding given that the US subsidiary of Spain's Iberdrola Renovables - the biggest wind farm operator in the world - was also the biggest recipient of the funds. And big European turbine manufacturers such as Vestas have been quite clear that they see the US as their big growth market.
Wind lobby huffs and puffs, but can't blow the facts away
October 28, 2009 in Institute for Energy Research
October 28, 2009 in Institute for Energy Research
In AWEA's blog post, they describe a national Renewable Electricity Standard as "a free-market" program. That is not accurate. In free markets, people are free to choose. A Renewable Electricity Standard forces people to buy wind, solar, and other government-approved energy sources. It is a mandate. Forcing someone to buy your product is not a free-market program by any definition.
Contrary to AWEA's assertion that a Renewable Electricity Standard would lower energy prices, common sense and real-world evidence suggest otherwise.
Short-term thinking on energy is going to cause some long-term problems
Ask Paul Edmonds, vice president of National Semiconductor in South Portland. In August, he wrote in the Portland Press Herald, "An inefficient regulatory system and lack of long-term energy strategy are conspiring against Maine citizens and businesses."
I was intrigued. So I called him. He told me, "High electricity costs are a threat to manufacturing competitiveness in Maine."
A well-rehearsed claim repeatedly trumpeted by wind project developers, and those wanting to join with them, promises substantial new property tax revenues as a windfall for our schools and counties.
This argument becomes a tool used to disarm those neighbors who are opposed to these mammoth towers and the disruption to this agricultural community. As I have investigated these claims of promised new tax revenues, I was struck by what is not shared: Subsequent appeals of the taxes, attempts to claim the turbines are not real property and affects of accelerated depreciation on these turbines thereby rapidly reducing the taxable value.
Wind power costs a lot to build and nothing to operate. Could it hammer the profits of power utilities that currently charge a premium to light your home by burning the decayed remains of ancient organisms? Investors shouldn't be too worried, according to Lasan Johong, an analyst with RBC Capital Markets. Johong says that increasing our reliance on wind power could actually raise power prices significantly.
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.
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.
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.
Policy fantasies are dangerous because they cause direct harm, replacing plans that might actually work, and because they spread economic illiteracy that can negatively influence future policies. ...Right now, one of the most dangerous policy fantasies is the distracting notion that government can create so-called green jobs and should strive to do so enthusiastically.
While the principal proponent of the green jobs hokum, Van Jones, is now out of government, the idea still influences policy design.
Also filed under [
Impact on Economy|
USA]
Green job subsidies will destroy far more jobs than they create
October 3, 2009 in Janesville Gazette
October 3, 2009 in Janesville Gazette
Don't let the hype about "green jobs" fool you. The global warming bill approved earlier this year by the House of Representatives would destroy far more jobs than it could ever possibly create.
Also filed under [
Impact on Economy|
USA]
Over the past year, we have read several op-eds and letters to the editor debating the true cost of Cape Wind. After eight years of controversy, the Cape Wind developer has failed to prove that his costly private venture won't raise our electric bills. The Alliance has asked Gov. Deval Patrick to order an independent cost analysis to get Massachusetts ratepayers some well-deserved answers to the looming Cape Wind cost question.
In the absence of a formal cost analysis, we can look to Europe, California, and perhaps most importantly, Texas, for lessons learned.
I recently read about Lewis County's loss of income from the Maple Ridge Wind Farm because of the loss of their Empire Zone certification. This is something of great importance to any community that is considering wind farms. When monies come into a community, budgets are set up and the spending begins. Projects are started, and the community depends on the yearly income from the wind farms to meet the demand of new expenses and projects.
Now Lewis County has to make up a loss of income.
Also filed under [
Tax Breaks & Subsidies|
New York]
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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