Library filed under Taxes & Subsidies from Massachusetts
As a result of the tax subsidies and high energy costs, the study said, Cape Wind Associates could expect to receive a 25 percent return on equity, or $139 million, over the decades-long life of the project.
BOSTON – A study released today by the Beacon Hill Institute at Suffolk University finds that a proposed wind energy plant for Nantucket Sound would confer above-average profits on its developer thanks to hundreds of millions of dollars in public subsidies. Editor's Note: The complete study is available via the link below.
If Cambridge takes advantage of a grant program that rewards municipalities for using green energy, it could more than double the amount of renewable energy it's able to purchase.
FLORIDA — Voters authorized the town to negotiate a payment in lieu of taxes with PPM Energy, which has permits to build 20 wind turbines on Bakke Mountain and Crum Hill here and in Monroe.
Westborough, Massachusetts [RenewableEnergyAccess.com] Evolution Markets LLC completed an auction of renewable energy certificates (RECs) for the Massachusetts Technology Collaborative (MTC), a public economic-development agency that manages the state's Renewable Energy Trust, for an average price of $53.10 [per MWh].
In November 2001, Cape Wind Associates, filed an application with the U.S. Army Corps of Engineers for permission to construct the nation’s first offshore wind farm in Nantucket Sound. The project would consist of 130 wind turbines, each approximately 420 feet tall, arrayed over a 24 square mile area of the Sound known as Horseshoe Shoals. The wind farm would be sited five miles off the coast, in federal Outer Continental Shelf (OCS) waters. From there, undersea cables would transmit power through state waters to an onshore distribution grid. The project, according to Cape Wind, would have an installed nameplate capacity of approximately 468 megawatts (MW) of electricity.
The yearly financial benefit to the town would be at least $100,000 between a payment in lieu of taxes (PILOT), electricity cost savings at the iron and manganese plant and a mechanism that ensures the PILOT and cost savings equal to no less than $100,000.
FLORIDA — A tax agreement between PPM Energy and the towns of Florida and Monroe could prevent costly disputes about the land used for Hoosac Wind LLC, a proposal for 20 wind turbines on Bakke Mountain and Crum Hill.
...the MEA Report can be used to estimate the value (avoided emissions) of Renewable Energy Certificates (REC) by providing both REC suppliers and stakeholders with information that can be used to communicate the environmental benefits of RECs and works to enhance the overall REC marketplace. Editor's Note: As noted below under Methodology [emphasis added], this report appears to substantiate the point that wind energy would not backdown "baseload" generation.
Environmentalists have been promising for more than three decades that wind energy would be competitive if there was a "level playing field," but it survives only because the field has been tilted in its favor.
When considering local bylaws regulating wind turbine development, towns need to consider whether and to what degree they should be encouraged. The question of how much revenue they might generate for the town will be among the first issues raised. To determine this, there are many things a town with land suitable for commercial wind development needs to consider. Particular attention needs to be paid to long-term trends as well. This paper explores some of these factors and their implications.