This month, unity was shattered within the wind industry when energy-giant Exelon Corporation broke ranks with other renewable-energy developers and asked Congress to let the production tax credit (PTC) expire in December. Exelon rightfully argued that the subsidy was distorting competitive wholesale energy markets and causing financial harm to other, more reliable clean energy sources.
In a fit of fury, the American Wind Energy Association (AWEA) voted Exelon “off the island” for insubordination and dismissed their complaint as self-serving, aimed at protecting Exelon’s fleet of Midwest nuclear power plants. AWEA insisted that wind was benefiting ratepayers by driving down consumer electricity prices in the face of “expensive, inflexible generation” like nuclear and coal.
As usual, AWEA position is easily rebutted. Yes, Exelon is concerned about (bizarre) wind pricing on the rates received by its nuclear power plants.…
Wind proponents cite their industry as one of the fastest growing sectors of the American economy, having doubled U.S. nameplate capacity since 2008. But let’s be clear: that recent growth is largely due to the massive infusion of public cash lavished on big wind under the American Recovery and Reinvestment Act of 2009 (ARRA), which is anticipated to pay out $22.6 billion in direct grants with 85% claimed by wind.
Expiration of Section 1603 cash grants, coupled with record-low natural gas prices, will likely collapse the stimulus-induced bubble and push installations back to mid-2000’s levels. Even if the production tax credit (PTC) is extended, offsetting above-market wholesale prices, recent growth will not be repeated.
Wind and State RPS Policies
In the last ten years, more than half of the states adopted renewable portfolio standards (RPS) that encouraged development of home-grown low-emission generation.…
“[Romney] will allow the wind credit to expire, end the stimulus boondoggles and create a level playing field on which all sources of energy can compete on their merits.”
– Romney campaign spokesman, “Wind Energy Tax Credit Splits Obama, Romney,” Des Moines Register, July 30, 2012.
The extension of the 20-year old Production Tax Credit (PTC) for windpower and other qualifying renewable energy is a wedge issue in the national political campaign. And with growing state-level pushback against government subsidies for qualifying renewables, it is time to ‘put-up-or-shut-up’ for on-grid wind and solar technologies.
And it was VERY good news that the Romney campaign issued a statement two days ago officially opposing an extension of the wind PTC. The other side wants him to walk it back, but few tangibles epitomize the fluff and failure of government-knows-best than taxpayer investments in wind power and solar power
AWEA: In Panic Mode
Meanwhile, the American Wind Energy Association (AWEA) has pumped millions of dollars into a lobbying campaign to secure the PTC’s extension.…