May 15, 2011

Subsidies in the Wind

Justin Katz

Lacking the time to thoroughly confirm Benjamin Riggs's claims, I offer them here mainly as a point of interest:

Wind-turbine projects threaten the already fragile Rhode Island economy with extreme utility-rate increases that will hurt consumers and keep manufacturing businesses from expanding or locating here. Land-based wind turbines depend on subsidies at a rate of more than 12 times those given to the oil and gas sectors, according to the U.S. Department of Energy.

I do note that this Department of Energy report from 2007 puts wind energy subsidies at $23.37 per megawatthour, while natural gas, on which Rhode Island relies most heavily, got $0.25 and coal saw $0.44. (Oil isn't included in the tables.) I'm not sure if any of this data includes indirect subsidies created when government steps in and enables energy companies to charge a premium for "green" energy, as Riggs writes:

Legislation before the General Assembly sets the reimbursement rates for developers and municipalities at the full retail rate. That triples those electric costs for National Grid (and us), and guarantees that if conventional power costs go up, the cost of wind power will go up with it. And when these wind turbines wear out, they will have to be removed and replaced at an even higher cost.

Unfortunately, the General Assembly's Web site appears to have been down all weekend, so I haven't been able to look up the specific legislation to which Riggs is referring. However, the Environmental Council of Rhode Island does list a few "legislative priorities" that sound related.

It's interesting to note that a key proponent putting his name on these energy bills in the House is Majority Leader Dominick Ruggerio (D, Providence). You know, the guy who's forcing us all to subsidize the career of 25-year-old Stephan Iannazzi (son of Ruggerio's union buddy) to the tune of $90,000 plus benefits. It's certainly not the only dynamic of its kind, but it's funny how these pieces all start to come together... the environmental movement, unions, government corruption.

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Deepwater Wind depends on partner First Wind out of Boston, MA for their turbines. First Wind has never installed an offshore wind turbine as all installations have been 3-bladed balanced turbines on land. In order to install and maintain the 3-bladed balanced turbines a very expensive marine jack-up barge and crane will be required.

First Wind has completed most all modern day wind farms in Hawaii but I guess they got cocky about the land deal where the wind farm was to be constructed because the latest Hawaii Big Wind Project 400 MW split 50/50 on two islands with interisland power cable First Wind got shot down with their 50% 200 MW proposal and failure to meet minimum required deadlines and stirred up community resentment. First Wind has been sent packing back to Boston and RI and has been officially replaced by another company which is working to undo what First Wind created.

Posted by: Ken at May 15, 2011 8:55 PM

Maintenance contracts are also part of the long-term wind scam. Portsmouth has paid at least three CANADIAN companies for the same service at about 50K per year. These companies quickly change names and create startups to fix all the problems the previous company created.

<<< First Wind has been sent packing back to Boston and RI and has been officially replaced by another company which is working to undo what First Wind created. >>>

Posted by: dave at May 16, 2011 7:38 AM
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