US Ends Green Subsidies For Wind Farms

There are going to be a lot more abandoned wind turbines in the US, real soon, as the Senate votes to end 20 years of Green susbsidies for wind power.

In the US wind farms have been subsidised since 1992 by the Wind Production Tax Credit (PTC), which was usually extended for 1 ā€“ 2 year periods; in 2009 the American Recovery and Reinvestment Act extended subsidy for wind power until the end of 2012.

An extension of the PTC, the subsidy that allowed wind to be competitive with other forms of energy, has been left out of a payroll tax cut extension currently making its way through the US House of Representatives, without a change of policy wind subsidy ends in 2012.

The Americans have subsidised wind power for 20 years, and yes, you guessed right without Green taxation the US wind industry is dead, and now the extension which needed 60 votes in the Senate to pass has failed:

The U.S. Senate has voted to reject an amendment to S.1813, the Surface Transportation Bill, that would have extended several important renewable energy incentives – including the production tax credit (PTC) for wind power – for one year.

The measure, introduced by Sen. Debbie Stabenow, D-Mich., also called for an extension of the Section 48C advanced energy manufacturing tax credit, which expired in 2010, as well as an extension of the Section 1603 cash-grant program.

Although the vote on the measure was even at 49-49, the amendment required 60 votes to pass, and was, therefore, not agreed to.

The news comes as a disappointment to the wind industry, which was hoping for a boon in an uncertain economic climate.

20 years of subsidy and the US wind industry is still not economically viable, and now the shale gas boom is going flat out which leaves wind and solar even vulnerable to affordable and reliable energy generation.

About Tory Aardvark

Climate Realist, Conservative and proud NRA member. I don't buy into the Man Made Global Warming Scam, science is never settled. @ToryAardvark on Twitter ToryAardvark on Facebook

Posted on March 14, 2012, in Anthropogenic Global Warming, Church Of Climatology, Climate Change, Global Warming, Green Lies, Green Taxation, Renewables, US Politics, Wind Power and tagged . Bookmark the permalink. 2 Comments.

  1. You’re wrong that the wind industry is not economically viable without subsidies. There are relatedly little costs associated with operating a wind farm once they are built (no fuel costs at least) and farms are profitable on their own without the subsidy. The lack of the subsidy will likely slow down the construction of new farms though.

    Here’s a quick calculation.

    A wind turbine is generating power 30% of the time on average in the USA due to wind speed variationss (if the wind is too high or too low the turbine shuts down). A 2 megawatt turbine running for 30% of a month (9 days) would generate 2 megawatts * 216 hours = 432 megawatt*hours of power. Or 432*1000 megawatt hours

    So 432,000 megawatt hours is equal to $43,200 in revenue (one month) if the price of electricity is $.1 per kwh.
    (in reality the national average for electricity is probably much higher per KWH but that is just a quick rough estimate using easy numbers).

    In a year that would be $518,400 per turbine. If a farm has 100 turbines, that’s $51.8 million, without any subsidies.

    Now you do have to pay for the farms to be built, and pay back loans and pay for interest on loans but that’s another story.

  1. Pingback: Why Do Green Environmentalists Oppose Everything « Tory Aardvark

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