We’ve all heard the pitch about how wind is free and that once a windpower facility is constructed, the cost of generation is appropriately set low thanks to no fuel expense. We’re also often reminded that no fuel cost means wind will help insulate consumers from wildly fluctuating energy prices.
The concept is easy to grasp, and rural communities considering whether to host a wind facility are likely to conclude that the project will produce local and regional benefits in the form of lower electricity bills.
Think again
The fact is, the price of electricity within a grid region is set at a single price known as the market-clearing price (MCP). In most organized electricity markets, electricity generators are encouraged to participate in a daily or day-ahead auction process whereby a uniform market price–the MCP–is established.…
Continue ReadingU.S. energy markets face a new regulatory framework arising from the failings of the financial sector. Trading costs will rise, threatening liquidity. However, many key elements of the Wall Street Transparency and Accountability Act of 2010 (Dodd-Frank Act) have been passed on to regulators. Their true nature will emerge only with time. The Act does little to streamline oversight activities, while the biggest problem may prove to be ‘regulatory creep’.
Background
The Dodd-Frank bill cleared the U.S. House-Senate Conference Committee back on April 25 following intensive days of negotiation, lobbying, and a final all-night drafting session. The House of Representatives quickly approved the legislation, but it stalled in the Senate where a super-majority is required to avoid filibuster. After considerable maneuvering, the bill passed on July 15 and was signed into law by President Barack Obama the next week.…
Continue ReadingWhen will Democrats and true environmentalists wake up to windpower, or what Robert Bryce calls the ethanol of electricity? Industrial wind is a scam when seen in all of its dimensions–economic, environmental, and esthetic. Bryce has identified five myths of green energy–and post after post at MasterResource by Kent Hawkins, Jon Boone, and John Droz Jr. have shown that meaningful CO2 reductions from windpower are highly debatable.
Industrial wind is chock full of environmental negatives and isn’t nearly as effective at reducing air emissions than advertised. Big Wind is corporate welfare with companies like GE and FPL skipping their federal taxes. Wind today is the legacy of Enron, the Ken Lay model of political capitalism. Wind is an assault on lower-income energy users, not only taxpayers.…
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