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What’s the true cost of wind power? Plenty, says NEWSWEEK

13 Monday Apr 2015

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 2 Comments

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back-up wind power, electricity bill, electricity bills, electricity from wind, power, reliability wind power, subsidies wind power, wind energy, wind farm, wind farms, wind power, wind power developers

What’s the True Cost of Wind Power?

Newsweek OPINION

By Randy Simmons 4/11/15 at 5:22 PM

As consumers, we pay for electricity twice: once through our monthly electricity bill and a second time through taxes that finance massive subsidies for inefficient wind and other energy producers.

Most cost estimates for wind power disregard the heavy burden of these subsidies on U.S. taxpayers. But if Americans realized the full cost of generating energy from wind power, they would be less willing to foot the bill—because it’s more than most people think.

Over the past 35 years, wind energy—which supplies just 2 percent of U.S. electricity—has received $30 billion in federal subsidies and grants. These subsidies shield people from the uncomfortable truth of just how much wind power actually costs and transfer money from average taxpayers to wealthy wind farm owners, many of which are units of foreign companies.

Proponents tend to claim it costs as little as $59 to generate a megawatt-hour of electricity from wind. In reality, the true price tag is more than two and a half times that.

This represents a waste of resources that could be better spent by taxpayers themselves. Even the supposed environmental gains of relying more on wind power are dubious because of its unreliability—it doesn’t always blow—meaning a stable backup power source must always be online to take over during periods of calm.

But at the same time, the subsidies make the U.S. energy infrastructure more tenuous because the artificially cheap electricity prices push more reliable producers—including those needed as backup—out of the market. As we rely more on wind for our power and its inherent unreliability, the risk of blackouts grows. If that happens, the costs will really soar.

Read more of this article from Newsweek, here.

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Wind power: a “wolf in green clothing”

28 Monday Jul 2014

Posted by ottawawindconcerns in Uncategorized

≈ 1 Comment

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cost-benefit renewables, Feed In Tariff subsidy, FIT, green energy, PTC, renewable energy, renewable power, subsidies wind power, The Hill, Warren Buffett, wind energy, wind farm, wind farms environment, wind power

It’s clean, it’s “green,” and it wants your land and your money too

Here from The Hill, a US blog for policy-makers, a posting on wind power and the US form of subsidy, the Production Tax Credit.

July 25, 2014, 10:00 am

Wind power production tax credit: Wall St. wolf in green clothing

By Curtis Ellis, The Hill, July 25, 2014

The tax incentive for wind power expired last year, and the battle over its extension is now underway. Opponents say the wind power production tax credit, PTC, is a wasteful boondoggle while supporters say it’s crucial for renewable energy and jobs. The Sierra Club calls it “one of the best bets we’ve made on clean, domestic energy.”

But it’s a misplaced bet.  The PTC actually blocks the green energy technologies that hold the most promise.  Rather than helping an infant industry, the PTC is a handout to Wall Street.

Congress created the PTC in 1992, a tax credit of roughly 2 cents per kilowatt-hour of wind electricity, to nurture the infant wind energy industry. Government incentives to promote crucial industries are time-honored. That’s not the problem with the PTC.What’s important is that only big investors who want to offset tax liabilities on other investments need apply. The PTC can only be taken against “passive income” – income from other investments. Private equity firms put together investors who need a tax write-off courtesy of the PTC. Warren Buffett admits he uses the PTC to lower his Berkshire taxes: “we get a tax credit if we build a lot of wind farms. That’s the only reason to build them.”

The PTC doesn’t help the average Joe who wants to put a small wind turbine on his ranch to generate electricity and reduce the taxes he pays on his farm income.

But while the PTC boosts Wall Street investment schemes in large-scale wind farms, the fact is small-scale, individually owned generation facilities hold the most promise for renewable energy.

Noted environmentalist Bill McKibben writes, “One of the great side effects of moving to renewable power is that we will replace vulnerable, brittle centralized systems that are too big to fail with spread out democratic energy sources.” Unfortunately, the PTC only encourages more “brittle centralized systems.”

California’s Local Clean Energy Alliance (which includes the San Francisco Bay Area chapter of the Sierra Club) concurs. It’s report, Community Power, states “local, decentralized generation of electricity offers many benefits to California’s communities relative to large central-station solar or wind power plants in remote areas.”

The Institute for Local Self Reliance, a green energy cheerleader, says renewables work best “at small scales across the country,” what’s known as distributed generation, “a network of independently-owned and widely dispersed renewable energy generators” rather than “a 20th century grid dominated by large, centralized utilities.”

In fact the Institute explicitly says the PTC is a significant barrier to greater investment in renewable energy. Removing this barrier “makes smaller projects more accessible to the local community, and draws local investors back into the process,” says John Farrell of the Institute for Local Self-Reliance.

Utilities are also taking local-scale renewable energy seriously.  A report by the Edison Electric Institute, Disruptive Challenges expects small-scale solar and wind “to challenge and transform the electric utility industry” with “adverse impacts on revenues, as well as on investor returns.”

David Crane, CEO of NRG Energy, a wholesale power company that operates coal-fired plants, told Blooomberg Businessweek  “the grid will become increasingly irrelevant as customers move toward decentralized homegrown green energy.”

So, if local-scale wind and solar generated close to the end user makes the most sense, why do we have a PTC pushing large-scale wind farms? It’s a Wall Street play.

Environmentalists supporting the PTC mean well, but they fail to see the wolf of Wall Street hiding beneath the green clothes. Ironically, the national green organizations are fighting for the kind of massive generating stations and power lines their local chapters often fight against.

The PTC is an anachronism and an obstacle to developing the decentralized, independently owned power generation system appropriate for wind, solar and other renewables.

Anyone who believes in renewable energy should be happy to see the PTC expire. It’s time to replace this tax write-off for the financial services cabal with something that benefits everyone.

Ellis is executive director of the American Jobs Alliance.

Read more: http://thehill.com/blogs/congress-blog/energy-environment/213183-wind-power-production-tax-credit-wall-st-wolf-in-green#ixzz38c15D4Uf

Eastern Ontario farmers on turbines: expensive, inefficient, and No thanks

11 Friday Apr 2014

Posted by ottawawindconcerns in Wind power

≈ 1 Comment

Tags

electricity bills, electricity bills Ontario, green energy, Green Energy Act, North Gower, Ontario, South Branch wind farm, subsidies renewables, subsidies wind power, Winchester wind farm, wind farms, wind farms Ontario, wind power, wind turbines

According to the Eastern edition of Farmers Forum, the paper did a survey at the recent Farm Show in Ottawa and asked people whether they “approve” of wind turbines.

The startling result is the majority of those responding said they did NOT approve of large-scale wind turbines, and the reason for most was that wind power was expensive and inefficient. Several remarked on what having turbines would do to their community (thank you! You are the good guys!) and others said that the economics just didn’t make any sense. The Auditor General for Ontario said that to the government in 2011, but it still has not done any cost-benefit analysis.

Note that one North Gower area farm owner said he is “not allergic to money” and would still put one on his property—not where he lives, we venture.

Farmers not sold on wind turbines, survey says

By Brandy Harrison

OTTAWA — While farmers are among the few who can directly benefit financially from hosting wind turbines, Eastern Ontario farmers are more likely to oppose than support them, a Farmers Forum survey shows.

In a random survey of 100 farmers at the Ottawa Valley Farm Show from March 11 to 13, nearly half — 48 per cent — disapproved of wind turbines. Another 29 per cent approved and the remaining 23 per cent said they were neutral.

But positions on the issue weren’t always clear cut. Even when farmers threw their lot in with one side of the debate or the other, their reasoning was peppered with pros and cons.

It’s in stark contrast to a Farmers Forum survey of 50 Western Ontario farmers at the London Farm Show in early March, where 58 per cent were strongly opposed to wind turbines. Farmers opposed outnumbered those who approved by nearly three-to-one.

The number of turbines reveal the difference: Of the 67 wind projects representing more than 1,200 turbines province-wide, almost all the turbines dot the landscape of Western Ontario. Only two projects are in Eastern Ontario, an 86-turbine project on Wolfe Island, south of Kingston, and another 10 turbines near Brinston, south of Winchester, which were completed in January.

Wind power is so controversial that 13 farmers polled at the farm show wanted to remain anonymous, unwilling to come out publicly as a supporter or a critic.

Nearly three-quarters of farmers who disapproved liked green energy in theory but panned turbines — and sometimes the Green Energy Act as a whole — as a too-costly, inefficient electricity source that’s driving up their power bill.

Eric VanDenBroek doesn’t mind the look of the turbines that are only a short drive from his Winchester dairy farm but isn’t a fan of the way the program was rolled out.

“Financially, it’s already proving to be a disaster,” …

Read the full story and see the chart of responses here.

 

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