Reports claim the decision to pull the plug on the project (Cape Vincent, NY USA) follow years of controversy in the community as the majority of residents were against the plan....ENERGYLIVE NEWS , Feb. 28, 2014



Friday, December 13, 2013

"Wind energy proponents appear blind to the economics…."

Master Resource

Linowes: Negative Pricing Distortions of Windpower
by Lisa Linowes
December 12, 2013

“The combination of the federal PTC and state RPS policies have shielded wind developers from the basic supply and demand forces present in a healthy competitive market. As a result, we are fast-tracking the construction of expensive renewable resources that are variable, operating largely off-peak, off-season and located long distances from where the energy is needed.”

As IER’s recent study found, the wind Production Tax Credit (PTC) disproportionately benefits States with renewable energy mandates by distributing the high cost of their policies to taxpayers at large. And the benefit is enormous — at $23/MWh, the PTC’s pre-tax value of $35/MWh equals or exceeds the wholesale price of electricity in many parts of the country.
No traditional source of electric generation receives a federal subsidy as generous and condition-free as the PTC.

Since most of the wind deployed in the US is located in, or adjacent to states with RPS mandates, project owners are also eligible to earn significant out-of-market revenues in the form of renewable energy credits.

The combination of the federal PTC and state RPS policies have shielded wind developers from the basic supply and demand forces present in a healthy competitive market. As a result, we are fast-tracking the construction of expensive renewable resources that are variable, operating largely off-peak, off-season and located long distances from where the energy is needed.

Wind and Below-Market Energy Prices
Wind energy proponents appear blind to the economics and justify the subsidies by insisting that adding renewables to the grid reduces the market price of electricity through a mechanism known as “price suppression” where resources with no fuel cost displace more expensive power. But such claims fail to fully consider wind’s behavior relative to electricity need and market rules.