With the current debate over ending oil producers’ subsidies the question arises as to what subsidies do the producers actually get. It is a surprisingly complicated question. Wind producers also get subsidies that take complex forms—investment tax credits, production tax credits, mandates, property tax exemptions, etc. But the major federal subsidy for wind producers is the option to take a 30 percent investment tax credit or to receive a 2.2 cents per kilowatt-hour production tax credit. “2.2 cents” doesn’t seem like much, but, depending on the time of year, it …
With Congress divided, will anything actually get done in the next two years? President Obama recently suggested energy policy as an area in which bipartisan support could exist. Rather than trying to pass a large climate change bill, Obama stressed the importance of increasing technologies and energy sources to reduce greenhouse gas emissions – including nuclear, clean coal, electric vehicles, wind, solar, and renewable fuels. Sometimes deemed an “all of the above” energy approach, it guarantees handouts and subsidies for all energy sources to make everyone happy. In other words, …
After nearly a decade, the Cape Wind offshore project has a lease approval from the Department of Interior, but it is not quite up and running. Once the 130 turbines that stand 440 feet high (taller than the Statue of Liberty) start moving, consumers will pay a hefty premium for the electricity the nation’s first offshore wind farm generates. The Boston Globe reports: [T]he energy produced will cost up to 50 percent more than energy today from some land-based wind farms and twice as much as some hydroelectric dams. The …
In the midst of a crisis in the Gulf, some Senators are making a final push to pass energy and climate legislation this year. Senators John Kerry (D–MA) and Joe Lieberman (I–CT) are introducing a scaled-back version of their original cap-and-trade bill but still want to maintain a carbon cap. Senate Majority Leader Harry Reid (D–NV) wants to bring an energy bill up for debate the week of July 26 that addresses the oil spill response and a greenhouse gas reduction plan for utilities only. A draft leaked from Senator …
In the 1990s, Gatorade ran its “I wanna be like Mike” campaign – a series of advertisements of kids aspiring to be basketball legend Michael Jordan. In light of the oil spill, President Obama is ramping up his “I wanna be like” campaign when it comes to America’s energy policy. In his May 27th speech on the oil spill, after calling for Congress to pass cap and trade legislation, President Obama said the United States should be more like China when it comes to our green economy: It’s time to …
The Senate Committee on Energy and Natural Resources met this morning and, among other things, discussed a national renewable electricity standard (RES). The RES, which mandates that a certain percentage of our nation’s electricity production come from wind, solar, biomass and other renewable energies, already passed out of committee but is likely to be a part of any energy agenda this year. A new Heritage Foundation study analyzing the costs of an RES finds that a national mandate for pricier, less reliable electricity would be harmful to American families, American …
The government is announcing its approval of the nation’s first off-shore wind farm today after a contentious, nearly decade long debate including many interested parties. Millions have been spent on lobbying both to move the project forward and stop it in its tracks. This is nothing new to energy projects. Coal, oil, natural gas, nuclear and renewables each have supporters and naysayers. Overregulation and special-interest politicking are two problems that are unlikely to disappear any time soon, but given the small percentage of energy that renewables provide and the ambitious …
Earth Day is a great day for politicians to push their clean energy agenda and President Barack Obama made this clear when he reiterated in his Earth Day video message that we need to transition to a clean energy economy. Politicians say that we should use the earth’s renewable resources, most notably the wind and the sun, to power our country. Some Members of Congress are even pushing for a federal mandate that requires a predetermined percentage of our nation’s electricity come from certain energy sources. The champion of ideas, …
One of the common arguments made against wind power is that without government subsidies, mandates or tax credits, wind turbines would not be built. But even when companies do receive preferential treatment to build windmills, just because they’re built doesn’t mean they’re going to work. For that, there needs to be (drum roll, please)…wind! A report from Britain says: “The analysis of power output found that more than 20 wind farms are operating at less than one-fifth of their full capacity. Experts say many turbines are going up on sites …
President Obama has been quite adamant about his push to transition to a clean energy economy, most notably by subsidizing wind and solar energy sources. He argues we need the government to invest in renewable energy to strengthen our economy and reduce the earth’s fever before it’s too late. Despite the Congress’s attempt to address the nation’s economic concerns and the government’s climate concerns, Washington’s policy prescriptions may not be all they’re cracked up to be. Consider a new study from MIT on wind power says that large wind farms …
