Energy subsidies

The Future of Energy:Renewable energy subsidies & Reducing Emissions

US-Energy-Subsidies

GUEST POST

Today’s guest post by Whaleoil reader Bruce Alan Forbes is part of an article he wrote called The Future of Energy with predictions for 2040. As it is an in-depth analysis I divided it into six posts so that we could discuss each part separately.

Current Subsidies

Worldwide, hundreds of billions of dollars per year are spent on subsidising wind and solar electricity generation, and on pursuing the development of marine power technologies based on waves, tidal currents and tidal barrages. In most countries, renewable energy is subsidised by the taxpayer and/or electricity consumer. “Feed-in tariffs”, “Production Tax Credits”, “Renewable Portfolio Standards” and “Renewables Obligation Certificates” are all forms of subsidy. The developers or investors benefit from subsidies and tax breaks that, in some cases, result in them getting their money back in very short periods. In nearly all cases, the cost of paying these subsidies is either added to the cost of electricity paid for by all consumers, or is derived from governments’ other tax revenues or increased government debt. It is these subsidies, not economic merit, that have produced the explosion in renewable energy projects over the past decade. Without subsidies, constructing wind and solar farms for connection to the grid would be a hugely loss-making business.

Read more »

The Future of Energy: Wind Power

GUEST POST

Today’s guest post by Whaleoil reader Bruce Alan Forbes is part of an article he wrote called The Future of Energy with predictions for 2040. As it is an in-depth analysis I divided it into six posts so that we could discuss each part separately.

62 Siemens wind turbines of the type SWT-2.3-101 turn here in the wind park West Wind near Wellington in New Zealand. 

Wind Power,

Wind power has been around for thousands of years. 200 years ago, the Fens in the UK were drained using wind-driven pumps. Because they were expensive to build and operate, and the wind often did not blow when needed, these were soon replaced by low-pressure steam driven pumping engines that, by today’s standards, were very inefficient and extremely expensive. The drive for efficiency and low cost led to their being replaced with higher-pressure steam engines, diesel engines and finally, by electric pumps.

Wind power today suffers from the same problems it did hundreds of years ago – expensive machinery, low average output and the vagaries of the wind.

Wind farms do not generate much in light winds and they must be shut down in strong winds. Typically, they generate less than 10% of their rated output for 30% of the time, and more than 80% for only about 5% of the time. A wind farm provides expensive electricity at unpredictable times – often when it is not needed.

Read more »

Fancy paying for ‘green’ energy?

I don;t if th UK is anything to go by.

‘Green’ energy is highly subsidised, inefficient and expensive, with consumers paying too much for energy costs.

Consumers face paying millions of pounds too much for solar farms after ministers handed the industry subsidies 10 per cent higher than it had asked for.

Industry body the Solar Trade Association said on Wednesday it “can’t understand why” ministers rejected its suggestion to cut subsidies further – reducing the cost of ‘green levies’ on consumer energy bills.

“From 2016 to 2019 [the subsidies] are actually higher than we asked for,” the Solar Trade Association (STA) said.   Read more »

Krauts learn fast

The Krauts are learning fast, green energy is a failure.

They are now firing up the coal plants.

Germany has just opened its first coal-fired power plant in eight years, reports Bloomberg, as the country grapples with renewable energy subsidies that are driving up electricity costs.

The German energy company Steag says its 725-megawatt coal plant in the western part of the country will begin commercial operations later this year, after “optimization works and testing” have been completed. This will be the first hard-coal-fired plant to come online in the country since 2005.    Read more »

Wasting a billion dollars a day. Every day

Subsidies are evil…more evil when deployed to support a fraud.

Cancel all subsidies, even those to other industries and deploy the cash on better things.

The world invested almost a billion dollars a day in limiting global warming last year, but the total figure – $359 billion – was slightly down on last year, and barely half the $700 billion per year that the World Economic Forum has said is needed to tackle climate change.

These are the findings spelled out in the latest Climate Policy Initiative (CPI) report. For the first time, it estimated global North-South cash flows at between $39 and $62 billion.  Read more »

Gay and Expensive…Green energy can’t exist without subsidies

Green energy sucks…loads of cash. Unfortunately politicians haven’t got the stones to knock it on the head.

There are numerous examples worldwide of failing green energy…but have a look at the UK!

Every British household will pay an average of more than £400 in higher bills over the next six years to pay for subsidies under controversial Government plans to hit green power targets.

The money will go solely to paying for otherwise uneconomic offshore wind turbines, onshore wind farms, biomass plants, landfill gas sites and hydro power plants, new figures show.

Green energy is supposed to be the wave of the future. Who on earth wants a future that is rapaciously expensive and doesn’t work?

If it is uneconomic then shut it down and get rid of it, don’t keep subsidising it.  Only terminalyy retarded people keep on pouring money in a scam or ponzi scheme like green energy. Read more »

Dagos power scheme falls flat on its face

The Spanish government has moved to arrest a massive problem in their power industry after maintaining a generous subsidy scheme for the deployment of renewable projects.

Widely seen as one of the most urgent economic challenges facing Madrid, the tariff deficit is the product of the steep gulf between the price of energy paid by consumers and the cost of production. The shortfall has been growing at a rate of about €5bn a year.

The €26bn financial hole reflects not least the generous system of subsidies for the renewables sector that was created by the previous government, and which sparked a boom for solar farms and wind parks across the country. Energy experts warn that at least some of these installations will no longer be able to operate profitably under the new regime.  Read more »

Ratbag Greenies costing poms more for power

Know one thing, if you let the green taliban have any say in anything it will cost you much, much more in the long run. Their solutions for everything require huge subsidies, reductions in service and/or both, and certainly increased costs for everyone.

Electricity prices in Britain may be almost double those in Germany within three years due largely to the impact of a new tax aimed at supporting renewable power generation, a report by bank Credit Suisse has claimed.

The bank’s analysis showed wholesale prices, which form the backbone of energy bills, would top those in Germany by 85pc in 2016-17 and would be higher in general for the next seven to 10 years.

The bank blamed the roughly fivefold rise in the government’s new tax on carbon-dioxide emitting power generation over the next seven years, while also pointing to Britain’s lack of infrastructure to import power from the European mainland.

Prices in the two countries had tracked one another for years, but they diverged last year as Germany spurred a boom in renewable energy generation by pouring billions into subsidising the green sector.  Read more »

Traditional energy sources go from doom and gloom to boom

The time of the climate change shills is coming to an end, but not before literally billions has been poured into their pockets. Stephen F. Hayward looks and the whole Climate Change debacle and the decline of the deception.

 [T]he climate change story has been overtaken by facts on the ground. Most significant: The pause in global warming​​—​​now going on 15 years​​—​​has become so obvious that many of the leading climate scientists are grudgingly admitting that global warming has stopped. James Hansen, who recently stepped down as NASA’s chief climate scientist to become a full-time private sector alarmist, is among those admitting that the recent temperature record has flatlined.

After two decades of steady and substantial global temperature increase from 1980 to 1998, the pause in warming is causing a crisis for the climate crusade. It wasn’t supposed to happen like this. The recent temperature record is falling distinctly to the very low end of the range predicted by the climate models and may soon fall out of it, which means the models are wrong, or, at the very least, something is going on that supposedly “settled” science hasn’t been able to settle. Equally problematic for the theory, one place where the warmth might be hiding​​—​​the oceans​​—​​is not cooperating with the story line. Recent data show that ocean warming has noticeably slowed, too.

These inconvenient data are causing the climate science community to reconsider the issue of climate sensitivity​​—​​that is, how much warming greenhouse gases actually cause​​—​​as I predicted would happen in these pages three years ago: “Eventually the climate modeling community is going to have to reconsider the central question: Have the models the IPCC [Intergovernmental Panel on Climate Change] uses for its predictions of catastrophic warming overestimated the climate’s sensitivity to greenhouse gases?”  Read more »

Wind Power sucks, it’s expensive, ugly and doomed

Regular readers of this blog know that I hate subsidies and even more I hate subsidising so-called green technologies. Wind power is one of those technologies.

Some people may ooh and ahh over those hideous turbines junking up the view but I do not. Wind power is doomed in the UK and now it is looking increasingly doomed in the US as people find out that the billions in subsidies have done bugger all except line the pockets of the turbine salesmen.

With the fiscal cliff approaching it looks like wind subsidies are finally doomed:

Federal subsidies for new wind-power generation will end on Dec. 31 unless they are renewed by Congress. For the sake of our economy and the smooth operation of the energy market, Congress should let the subsidies lapse. They waste taxpayer money, subvert the allocation of capital, and generate a social cost many times the price tag of the subsides themselves.

Since 1992, the federal government has expended almost $24 billion to encourage investment in wind power through direct spending, tax breaks, R&D, loan guarantees and other federal support of electric power. The Joint Committee on Taxation estimates that a one-year extension of existing federal subsidies for wind power would cost taxpayers almost $12 billion.

The costs of wind subsidies are extraordinarily high—$52.48 per one million watt hours generated, according to the U.S. Energy Information Administration. By contrast, the subsidies for generating the same amount of electricity from nuclear power are $3.10, from hydropower 84 cents, from coal 64 cents, and from natural gas 63 cents.

Cost is only part of the problem:

Subsidized, wind-generated electricity is displacing other, much cheaper sources of power. The subsidies are so high that wind-power producers can pay utilities to take the electricity they produce and still make a profit. Such “negative pricing” has occurred for some time in the Midwest, the Pacific Northwest and in Texas—and, according to the Energy Information Administration, it will likely grow.

But wind isn’t constant which means that costly redundant back up power generation capacity must be maintained.

Power grids that rely on wind-generated electricity have to maintain redundant, backup generating capacity in case the wind isn’t blowing and the demand for electricity is high. Many of these backup sources, such as coal and gas-fired plants, have to be kept up and running to be available when they are needed—even if they are not used. This partially offsets the environmental benefits of wind power.

Wind power proponents are having a lend.

In the 1990s, the federal government began subsidizing wind power based on the hope that, with a helping hand, the technology would improve rapidly, costs would decline, and the industry would become economically viable. Congressman Phil Sharp (D., Ind.), the original proponent of the subsidies, argued in 1991 for “a sunset provision to ensure that the temporary incentive does not become a permanent subsidy..

But the sun has never set. Again and again—on seven subsequent occasions in all—federal subsidies for wind were extended.

Yet wind power is less economically viable today than it was when the current subsidies started in 1992. After the expected gains in moving from one-off production to assembly-line production, no major technological breakthrough has occurred that would substantially lower the cost of wind-power electricity generation. The Department of Energy’s “2009 Wind Technology Market Report” finds average wind-power costs were higher in 2009 than they were in 1994, two years after the subsidies began. As Energy Secretary Steven Chu has observed on more than one occasion, wind energy is a “mature technology.”

Time to end the subsidies.

It is increasingly difficult to make a case that taxpayers should continue to subsidize wind-generated electricity. The end of the subsidy will not induce owners of existing windmills to shut them down, since so much of the cost is fixed in the original construction project and so little of their costs are entailed in operating the windmill once it is constructed. Under current law, billions of dollars in subsidies will continue to be paid out over the next decade on existing projects even if the subsidies for projects built in the future expire.

If unimpeded, the expanded use of cheap natural gas to generate electricity will raise living standards and attract millions of new industrial jobs back to our shores. A vote to stop wind subsidies from being extended is, therefore, a vote for cheaper, more reliable power, higher living standards, reindustrialization and fiscal sanity.