Library filed under Taxes & Subsidies
Just weeks after it was rejected by New Jersey power regulators, the Fishermen’s Energy wind project off Atlantic City got a potentially new lease on life — a $47 million grant commitment from the U.S. Department of Energy.
"I will do anything that is basically covered by the law to reduce Berkshire's tax rate," he said. "For example, on wind energy, we get a tax credit if we build a lot of wind farms. That's the only reason to build them. They don't make sense without the tax credit." Think about that one. Mr. Buffett says it makes no economic sense to build wind farms without a tax credit.
Wind energy might be great: we would commend any energy producer who found a way to provide efficient, inexpensive, abundant, reliable, and clean energy, regardless of the source. If it worked as Sen. Udall and his allies claim, we as consumers might even support it with our hard-earned dollars. If the product is inferior to its competition and more expensive (unless buoyed by tax-credits), we wouldn't make that investment-our money is better off elsewhere.
By the end of 2013, wind energy represented 94% of the fuel used to meet New York State's RPS mandate. Twenty wind power plants are operating in the state with an installed capacity of 1,730 megawatts. We've been tracking NY's wind production figures since 2009 and its performance has not improved.
Irish wind-farm operators receive payouts from other electricity providers in respect of "constraints" or "curtailments" where a transmission or distribution line is down for maintenance or where there is a local fault, or when there is high wind at a time of low-energy demand (for example, in the middle of the night) and turbines are shut down due to over-capacity.
With the completion of Texas’ $7 billion Competitive Renewable Energy Zone project, there are now more transmission lines than needed. That has enabled developers to sell their power at higher rates and brought the practice of selling electricity at zero or negative to a virtual halt.
American taxpayers and ratepayers have seen little return on their forced investment in wind energy over the past 20 years. Wind power consistently breaks its promises of long-term job creation, economic activity, and affordability. Swayed by special interests in the wind energy industry, they focus on the hopeful prospect of a thriving wind industry while overlooking the real problems that arise from subsidizing it.
“The lows … tell as sobering a story as the highs tell a celebratory message,” AWEA CEO Tom Kiernan says in the report, which was provided to media on the condition it not be redistributed. “They convey a crystal-clear message: The PTC and ITC must be extended."
Negative prices are not the goal of any healthy economy, yet the PTC fosters this behavior at the expense of other, reliable generation. Building more infrastructure to correct for this problem is exactly the wrong thing to do.
The late extension of the federal Production Tax Credit in 2013 resulted in a 92 percent drop in completed installations nationwide ...That tax credit expired at the end of last year, and its future is iffy. In addition, in Kansas, wind energy has come under attack from powerful groups that want to do away with the Renewable Portfolio Standard.
Some of Ohio’s largest and best-known businesses are at odds this week over a proposal that would stop mandated annual increases in “green” energy purchases by utilities.
One of the things we remember most about the late President Ronald Reagan is what he said about government programs: “The closest you will come to eternal life on this Earth is a government program.”
An April 8 discussion of lapsed tax incentives in the House Ways and Means Committee was notable mainly for what went unmentioned: the renewable energy production tax credit, a crucial incentive for the wind industry.
The most egregious of the tax extenders are the energy subsidies. Most of these industries, particularly Big Wind, make little or no profit, offer the public no investments, and pay no taxes, yet their productivity is almost completely subsidized. The 2.2 cent per kilowatt-hour production tax credit is by far the most offensive of the credits.
Green groups in Germany warned on Wednesday that plans to scale back subsidies for renewable power would slow down the country's so-called 'energy revolution', saying last minute concessions to help wind farm companies were not enough.
But Wyden and Hatch left other tax provisions that had been part of previous “extenders” bills on the cutting room floor — most notably the production tax credit (PTC) for wind and other renewable sources of electricity. Some provisions often derided as corporate pork survived in the bill, like a preference for the Puerto Rican rum industry, while others — a tax break for NASCAR tracks, for instance — were excluded.
The wind industry and other renewable electricity producers still have some lobbying ahead of them, as Senate Finance Chairman Ron Wyden (D-Ore.) and ranking member Orrin Hatch (R-Utah) did not propose a renewal of the production tax credit (PTC), typically the most expensive of the energy provisions included in "tax extenders" bills.
The PTC stands a good chance of being included in whatever makes it out of committee, lawmakers and aides say, but it will face a much tougher time on the Senate floor and in the House, where opposition among rank-and-file Republicans has grown over the last two years.
Ohio Senate Republicans release a plan on Friday to indefinitely freeze the state’s annual benchmarks for renewable energy and energy efficiency, a bill that sponsors say is an embrace of science and affordability. ...If the freeze becomes law, the standards would remain at current levels, which is 2.5 percent for renewable energy and 4.2 percent for energy efficiency.