Library filed under Taxes & Subsidies
The DRA concluded the wind farm was valued at $228 million – more than twice the $113 million value locked in by the PILOT agreement. But because Granite Reliable couldn’t be forced to pay any more than what was called for under the PILOT, tiny Millsfield suddenly owed the state around $800,000. That was a scary thing to residents who were suddenly confronted with the possibility of a huge tax increase.
You cannot deliver wind energy standalone — rather, it must “merge” into existing base load, whatever the source. That merging and “demerging,” when the wind dies suddenly, presents special grid-balancing challenges to base-load providers, which adds to the cost of electricity.
Everywhere you look, the market is giving signals that wind energy is an economically-specious idea. In order to move ahead with these projects, especially the offshore wind farms that are the latest rage, business is asking for tax breaks, subsidies and federal loan guarantees. They understand that without them the math doesn’t work – so why don’t the politicians in Washington?
The renewable energy target is subsidising technologies that are already widely used around the world and is at odds with the Abbott government’s crackdown on corporate welfare, according to Queensland’s biggest electricity generator.
One of the nation’s top renewable energy suppliers said it will no longer trade Vermont’s renewable energy credits that are also counted toward the state’s clean energy target. “It is a fundamental principle of all renewable energy market sales that the environmental characteristics associated with the electric energy generated cannot be counted or claimed twice,” NextEra Energy said.
The Senate just fell apart over a full-employment plan for lobbyists also known as the “tax extenders” bill. ...This may be one of those times when no bill is better than a bad bill. Certainly it won’t be the end of the world if both the House and the Senate have to ponder this turkey a while longer, during which time they may come up with a way to pay for it — or even the gumption to end the absurd annual “tax extender” ritual once and for all.
The fate of the wind PTC has been a thorny issue in the energy industry, with utility Exelon arguing that the PTC allows wind power producers to sell into competitive markets at negative prices, undercutting its fleet of nuclear reactors.
Senate Minority Leader Mitch McConnell, R-Ky., said Democrats had turned the Senate “literally on its head” by refusing to allow amendments, and proposed voting on all tax-related amendments to the bill. “What are they afraid of?” McConnell asked.
“After nearly 22 years and eight extensions, it’s time for the wind production tax credit to end and let wind stand on its own in the marketplace. Let’s save $13 billion. Let’s stop distorting the marketplace and undercutting nuclear and coal plants. And let’s stop destroying the environment in the name of saving the environment.” – Lamar Alexander
The broad Senate package is encountering stiffer resistance in the House than in years past; last week, the lower chamber moved through a much smaller package to make permanent just a handful of overwhelmingly popular incentives, such as the research and development tax credit. Regardless of what happens in the Senate in the coming days, final action to extend the credits is not expected until after the November elections.
Renewing federal tax credits for wind energy would blatantly waste taxpayer dollars on a manifestly unsustainable industry that's wholly dependent on government subsidies.
Wind-generated electricity has been on and off the public dole since the inception of the PTC in 1992. When it was set to expire again in 2012, Congress passed a one-year extension as part of the fiscal cliff deal. The wind industry got not only the extension but also an expansion of eligibility. This reduces the industry’s taxes $12 billion over the next 10 years.
If all the 50-plus temporary tax breaks were made permanent, it would "add $500 billion or more" to the deficit. ...The Senate is moving to extend nearly all the temporary tax breaks through 2015, putting off the debate over which ones to make permanent. The Senate could vote its package as early as next week, setting up a showdown with the House that might not get settled until after congressional elections in November.
Presiding over his first WINDPOWER in an official capacity an enthusiastic Kiernan took to the stage and tasked attendees with doing their part to help extend the PTC, the wind industry's chief legislative vehicle. ..."We are at a crossroads," Kiernan said. "We need to get the PTC extended."
After nearly 22 years, eight resurrections and billions of taxpayer subsidies, it's time to let the marketplace rule and allow wind power to rise or fall on its own. Save our money, save our nuclear plants and save our mountaintops.
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.