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.
WindAction Editorials filed under Taxes & Subsidies
“We have a long way to go before Chairman Camp’s tax reform bill is final and, no doubt, the debate over tax-extenders will be rigorous. But this is a rare opportunity for American taxpayers to once and for all eliminate the near-permanent temporary tax credits.”
“The combination of the federal PTC and state RPS policies has shielded wind developers from the basic supply and demand forces present in a healthy competitive market. As a result, we are fast-tracking the construction of expensive renewable resources that are variable, operating largely off-peak, off-season and located long distances from where the energy is needed.”
Proponents of wind energy insist that adding renewable energy to the grid reduces the market price of electricity by displacing resources with substantially higher operating (fuel) costs. Various studies have been performed that model the "price suppression" effect of wind and solar on ratepayer bills, however, assessing the actual impacts of an operating project on rates has proven more elusive.
This year, the wind industry added just 1.6 megawatts of new operating capacity in the United States, a 0.0027% increase over 2012 installations.