at the Citizen Power Alliance 2010 Wind Conference
Can wind grow without the PTC?
|Wind proponents insist the industry is one of the fastest growing sectors of the American economy having doubled U.S. nameplate capacity since 2008. |
But let's be clear: Recent growth in the industry is largely due to the massive infusion of public cash lavished on big wind under ARRA. 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. The production tax credit, if extended, will continue to offset above-market wholesale prices for wind power but the credit will not drive the same level of growth.
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. State legislators voted in favor of the mandates after being convinced by proponents that more renewable resources in the energy mix, particularly those with no fuel cost, would replace fossil use, attract jobs and ultimately stabilize and reduce energy prices.
But the artificial no-compete power markets created by RPS policies for self-selected renewable resources drove up electricity prices and forced ratepayers to pay for energy they didn't need. In 2011 residential rates in states with mandates were 27% higher than those without mandates while industrial electricity prices were 23% higher.
(Click to read the entire article)
posted by SARTRE at 6:00 PM - permanent link
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