The wheels are coming off the wind energy gravy train
And subsidy-dependent wind energy supporters are running scared
The wind energy industry has been having a hard time. The taxpayer funding that has kept it alive for the last twenty years is coming to an end, and those promoting the industry are panicking.
Perhaps this current wave started when one of Big Wind’s most noted supporters, T. Boone Pickens, said in an MSNBC interview, “I’m in the wind business…. I lost my ass in the business.” But the industry’s fortunes didn’t get any better when the Wall Street Journal wrote an editorial titled, “Gouged by the wind,” in which they stated: “With natural gases not far from $2 per million BTU, the competitiveness of wind power is highly suspect.” Citing a study on renewable energy mandates, the WSJ noted that states with renewable energy mandates “paid 31.9% more for electricity than states without them.”
A comprehensive article in the Financial Times concluded that the “US renewables boom could turn into a bust,” the enthusiasm for renewables “could fizzle out,” the US wind industry is stalling and may go into reverse,” and “governments all over the world have been curbing support for renewable energy.”
Michael Liebreich of the research firm Bloomberg New Energy Finance says, “With a financially stressed electorate, it’s really hard to go to them and say: ‘Gas is cheap, but we’ve decided to build wind farms for no good reason that we can articulate.’” Christopher Blansett, alternative-energy sector analyst for the Best on the Street survey, says, “People want cheap energy. They don't necessarily want clean energy.”
As the Financial Times reports, time-limited subsidy programs “face an uphill battle.” The biggest US program set to expire this year is the production tax credit (PTC) for onshore wind power, which “is the most important factor behind the fourfold expansion of US wind generation since 2006.” Four recent attempts in Congress to extend it have failed.”
According to the WSJ, “The industry is launching a lobbying blitz.” The “2012 Strategy” memo from the American Wind Energy Association includes:
- “To maximize WindPAC’s influence, WindPAC will increase the number of fundraisers we hold for Members of Congress.”
- “Continue the Iowa caucus program to ensure the successful implanting of a pro-wind message into the Republican presidential primary campaign.”
- “Respond quickly to unfavorable articles by posting comments online, using the AWEA blog and twitter, and putting out press releases.”
- “Continue to advocate for long term extension of PTC and ITC option for offshore wind.”
- “AWEA requested a funding level of $144.2 million for FY 2012 for the Department of Energy (DOE) Wind Energy Program, an increase of $17.3 million above the President’s Congressional budget request.”
Read next: "Train Wreck": Extreme Measures Being Taken To Battle Biden's 'Green' Energy Grid Crisis
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