Ed. note: The current cold snap (“where is global warming when you need it?”) makes timely a review of the Texas electricity debacle of February 2021. This post by Robert Bradley, “Wind, Solar, and the Great Texas Blackout: Guilty as Charged,” was originally published by the Institute for Energy Research. As of 5 pm yesterday, natural gas and coal supplied about 75 percent of Texas’s electricity (ERCOT scoreboard) and wind/solar 17 percent (versus 50 percent of rated capacity).

“Central planning for a forced energy transformation produced the debacle of debacles two years ago in Texas. It is time for a new era for U.S. electricity policy premised on market entrepreneurship.”

Electricity specialists at the University of Texas at Austin recently revisited the Great Texas Blackout of February 2021.…

“IER/AEA have thousands of individual donors, reflecting the intellectual case for a free market and the goodness of civil society. This is a proud fact.”

A Mother Jones article from 15 years read: “Meet the 12 loudest members of the chorus claiming that global warming is a joke and that CO2 emissions are actually good for you.” And number 12 of the “dirty dozen” was the educational nonprofit Institute of Energy Research and its advocacy arm, the American Energy Alliance.

IER/AEA would surely make the list today–and be ranked higher. This is a badge of honor. The message of classical liberalism applied to energy remains strong and consistent. Consumers matter. Taxpayers matter. Energy resource efficiency matters. Respect for the energy decisions of voluntarily consenting adults matter.

Here is the piece by Josh Harkinson from December 5, 2009, verbatim, with my critical comments.…

“Rob’s snide reference to my ‘chess pieces’ is a reference to my unwillingness to agree with his Utopian dismissal of ISO/RTO organized wholesale markets.” (Lynne Kiesling to Vernon Smith, below)

“Yes, playing with government chess pieces (on-grid solar, wind, batteries, ‘smart’ meters) and a centrally planned wholesale market is Statism writ large.” (Robert Bradley to Kiesling, below)

Electricity specialist Lynne Kiesling champions herself as a classical liberal, free-market advocate. But she is just the opposite and relies on obfuscation and charm to advocate and sell

1) government central planning of wholesale electricity and

2) government-enabled wind, solar, and batteries in place of least-cost (central-station) electricity.

It is her “synthetic regulation” or the highway, premised on a belief that there cannot be private property rights to grid electricity.

This woman of system will not forthrightly define what a free market is with electricity.…

“Creative destruction results from verdicts at the intersection of supply and demand. Outside of the free market, energy elitism has created a political market, a sub-industry whose activity results from special tax favors, government grants, and/or mandates.”

Creative destruction, a term popularized by Joseph Schumpeter, is the market process whereby bad is eliminated, the better replaces the good, and past performance gives way to new strategies and victors. No firm is forever, and financial loss is a characteristic of capitalism, as is the more used term profit.

Energy is the story of creative destruction. Coal gas and later coal oil replaced a variety of animal and vegetable oils, including whale oil, camphene oil, and stearin oil. Crude (mineral) oil then displaced manufactured (coal) oil, just as later natural gas would displace manufactured (coal) gas.…