A Free-Market Energy Blog

Germany: Wind and the Power Pool Savings Myth

By Donald Hertzmark -- September 3, 2010

Germany is a country that has been a leader in many aspects of “clean” energy development during the past decade.  They were among the leaders in establishing pricing mechanisms for wind and solar, phasing out nuclear power and granting incentives to biomass energy producers.  Germany has the highest proportion of wind in its generation mix, now around 20%, but is no longer the absolute installed capacity leader behind the U.S. and China.

With a vast investment in above-market generation resources some in Germany are channeling “Mad Man Muntz” of early US television history – “lose money on every sale but make it up with the volume.”  It did not work for Muntz TV and it will not work for Germany.

A New Fairy Tale, Starring Wind Energy Generators

Lately, a story has gone round with the following general points:

  • Assume that the marginal cost of wind is the lowest of all existing generation plant types;
  • Assume that power pools in NW Europe accept generator bids based strictly on the marginal energy cost (MEC)
  • Assume that wind can be the marginal generation resource during some peak periods
  • Assume further that this MEC sets the price on the pool for those time segments (30 minutes) where wind is the marginal producer, and therefore
  • Wind, by setting the MEC during some peak demand periods, will reduce the price of energy during such periods and save consumers money.
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Drill, Baby, Drill Is Back, Baby, Back

By Ben Lieberman -- September 2, 2010

Public support for tapping America’s oil reserves has been strong over the past several years, but it received its toughest test with the Deepwater Horizon spill. The verdict is now in – and it’s drill, baby, drill!

A clear majority continued to support drilling in American waters even during the height of the spill, when oil was gushing uncontrollably and dying birds headlined network newscasts. Pollsters at Rasmussen report that, “since the oil rig explosion that caused the massive oil leak, support for offshore drilling has ranged from 56 percent to 64 percent.”

That’s not far below the 72 percent who supported it before the spill, nor much different than the support back in the summer of 2008 when pump prices topped $4 a gallon. Now that the leak has been stopped, the percentage in favor should start rising again.…

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Post-Carbon Left Enviro Blues (Why the Senate rejected cap-and-trade)

By -- September 1, 2010

Everyone knows that our industries contain a large collection of minds that are almost indecently fertile. Name the business and you can see lots of people who were quick to spot the growth possibilities in climate policy, whether they were financial, political or technological. The semiconductor industry turned sand into wealth, and we were going to do the same with the world’s exhalations.

And now it’s as good as over. Only the problem is that those of us who were smart enough to get into carbon on the ground floor refuse to acknowledge what is becoming more obvious by the hour.

The great bulk of groups that call themselves “nonprofit” and “nonpartisan”are little more than shills for environmentalists and Democrats. But here is an unusual one: the Breakthrough Institute.

“Breakthrough” is usually a word reserved for psychotherapy, but the Breakthrough Institute is green with an attitude.…

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Let’s Stop Playing the Climate-Change Blame Game (Extreme weather alarmism unfounded)

By Chip Knappenberger -- August 31, 2010
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“Wind Power Won’t Cool Down the Planet” (Robert Bryce exposes windpower’s dirty secret)

By Kent Hawkins -- August 30, 2010
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Judith Curry Looks for Middle Ground in the Contentious Climate Debate (Jerry North, can you help her?)

By Robert Bradley Jr. -- August 27, 2010
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Latest on the Death Spiral of Climate Alarmism (Is it time to focus on real environmental problems and not CO2?)

By Robert Bradley Jr. -- August 26, 2010
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The Catastrophe That Wasn’t: The Gulf Oil Spill in Perspective

By Paul Schwennesen -- August 25, 2010
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Rent Seeking with Global Warming: From Enron to California AB 32

By Tom Tanton -- August 24, 2010
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Carol Browner Knows the Drill (a surprising advocate of hydraulic fracturing of gas)

By Chris Tucker -- August 23, 2010
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