Posted on 12/11/2013 6:00:20 AM PST by thackney
Once again, the Production Tax Credit (PTC) - so crucial to the US wind industry - expires at the end of this year, but this time we're hardly hearing anything about it. It will likely quietly slip away during the night on New Year's Eve.
Although the credit serves the entire industry, wind manufacturers are particularly exposedrelated production facilities (in 44 states) will be left "blowing in the wind."
Thanks to the wind PTC, the US is one of the largest and fastest growing markets for wind energy. Some 70% of components for US wind farms are Made in the USA. 80,000 Americans are employed in the industry supply chain.
For the past two years, it cost an average of 4 cents per kilowatt hour to buy wind power under a long-term power purchase agreement - making wind energy competitive with fossil fuels.
After its strongest year ever in 2012, the wind industry struggled through 2013, as it ramped back up after the last minute (literally) extension of the PTC. Now that it is returning to healthy levels, it's Ground Hog day.
Here we go again. It's an all-too-familiar feeling. The PTC was allowed to expire in 2012, 2008, 2005, and 2003, before Congress passed an extension.
In the background, some are pushing for another extension of the credit, but that's being met by an equal if not stronger pushback from those who don't want to see it renewed.
This summer, Rep. Mike Fitzpatrick (R-PA) introduced a bill to extend the PTC for another six years and then phase it out permanently, "The PTC Certainty and Phase-Out Act of 2013" (H.R.2987).
But in late September, 23 groups including well known names like Koch Brother's-backed Americans for Prosperity, FreedomWorks and Club for Growth sent a letter to Congress pressuring them to let the PTC expire.
They call wind a mature industry that doesn't need "welfare," even as fossil fuel industries continue to fight to keep their century-long tax credits. The fact is that because the US does not have an energy policy, the tax code has been used to spur grow in all kinds of energy, but most estravagantly, oil, coal, gas and nuclear ... not wind and other renewables.
All of the Usual Suspects
Among the usual suspects agitating against the PTC is the American Energy Alliance (AEA), a conservative advocacy group, and the Institute for Energy Research, its affiliated think tank.
Founded in 2008 by Thomas Pyle - who had previously lobbied on behalf of such key fossil fuel advocates as the National Petrochemical and Refiners Association and the Koch Brothers-backed Americans for Prosperity - AEA released a study and an advertising campaign early this month that claims taxpayers in many U.S. regions are footing the bill for wind generation. Taxpayers, they say, have laid out over $12 billion on the PTC over the past 20 years.
An IER study, "Estimating the State-Level Impact of Federal Wind Energy Subsidies," calculates how much wind developers in each state received from the PTC in 2012. Their conclusion? 30 states paid more than they recouped from in-state wind energy, led by California, New York, Florida, New Jersey and Ohio.
"Studies like this are essential for the American public to understand what happens when government takes their money to fund expensive programs that benefit boutique industries. The present administration has picked wind as its favorite energy source and as a result, every American taxpayer loses," states Pyle, who currently serves as president of both AEA and IER.
Analysis is Flawed
"It doesn't take a Ph.D. in economics to see why this type of analysis is flawed," says Kevin Haley, strategic communications manager for the American Council on Renewable Energy (ACORE).
"By IER's logic," he says, "the long-embedded domestic manufacturing tax deduction for oil and gas, for example, would be unfairly slanted in favor of oil and gas-producing states - with the likes of Maryland, Nevada and Missouri "subsidizing" states like Texas, Louisiana and Oklahoma. The fact is, energy tax credits, the PTC included, are intended to support the energy industries - not the actual states themselves."
In fact, he argues, the PTC confers substantial economic benefits for states. "Take Michigan, one of IER's top ‘loser' states. Michigan is about to join the elite 'Gigawatt Club.... The PTC helped build a regional wind industry in Michigan that now comprises over 40 local businesses and 3,000-plus in-state jobs."
And of course the conservative groups don't mention that in the fiscal cliff deal that renewed the PTC, fossil fuel industries retained their tax advantages, amounting to $46 billion over the next 10 years. The wind PTC would cost $18 billion if it remained in place during that time.
As of early 2013, there are 60 gigawatts of wind capacity in the US, enough to supply 6% of electricity.
Gone With the Wind
Maybe they can recoup some of their money by selling eagle feathers. Just sayin’.
Some where an eagle is smiling.
GE makes twice the money on wind generators. They sell the wind generators and the quick start CT’s that back them up.
The great con is over.
I`m still waiting for the windmill that mounts on and powers my Ranger pickup.
This is insanity, defended by lunatics. Wind power is incredibly inefficient. Don’t throw even more tax payer dollars down that rabbit hole.
QUIP OF THE DAY
There are places it makes sense, if done without taxpayer subsidies.
I've put wind turbines on small unmanned offshore platforms.
First you need a hill to roll down to get the blades turning. Then you have to keep moving to keep the power going. Do you think actual sailing type sailors know about wind? What do we do in the doldrums? Sit.
LOL! Thank you. Thank you very much. I’ll be here all week. But, probably not “pithy” enough for o’really. Not that I would waste it on him anyway.
I agree 100%. I do not want to pay them so a greenie can feel they are saving mother earth.
Think Osprey. Whatever happened to the air cars that disney used to show in tomorrow land? Or like on the Jetsons.
We need to grow up and start saying "No!" at some point! We are on the verge of collapse, and we still pay everyone for everything. It's maddening.
If that was the case, there would be no need for the wind turbine. They were combined with solar and batteries. And these were small power sites. It was the most economical. Batteries were designed for 3 days of typical power use without input from either.
It is very rare to have 3 days offshore without wind or solar.
The article has quotes which argue that wind-energy deserves subsidies, because the fossil rules industry gets benefits: apparently they speak of depletion allowances.
Two points: Liberals not from producing states have long argued against depletion allowances, so why now should they support something for wind power that they consider comparable to something they have long opposed?
Second: When a petroleum company sells fossil fuel, it is losing property (the oil or gas in the ground). But the wind is not depleted by wind farms: indeed, they argue that their resources is “renewable.”
Left out of the whole discussion is that so-called renewable energy uses up resources, also. Their installations — wind farms and solar panels — are made of metals and petroleum products (plastics) which comes from more conventional sources. The parts for a wind farm do not just blow in with the breeze!
Energy sources should largely be left to compete. Who knows: some day perhaps horses will replace automobiles and trains and planes. The competition should be within a free economy, and not determined by lobbying strength and self-righteous “green” posturing.
A few months back DOE themselves listed some 800 dams east of the Mississippi that could be retrofitted to return to electricity production.
Unfortunately wind fixated “greenies” want to tear out all the dams and let the rivers flow free. Never mind that hydro is tried and true effective green energy production that actually works every day all day. (not to mention not needing to be replaced every 20 years at most)
From wiki
Strategic communication management could be defined as the systematic planning and realization of information flow, communication, media development and image care in a long-term horizon. It conveys deliberate message(s) through the most suitable media to the designated audience(s) at the appropriate time to contribute to and achieve the desired long-term effect. Communication management is process creation. It has to bring three factors into balance: the message(s), the media channel(s) and the audience(s).[2]
(emphasis, mine)
IMO, this is the kick-off of a large media push to keep the credits.
This is going to create a whole new problem.
Rusting, decaying wind farms which pose a public safety hazard as they deteriorate.
You darn well know the operators are going to shut them down and cease all maintenance the day after the subsidies dry-up.
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