FAQ -- ECONOMICS
How much does it cost to build a wind power facility?
Construction of a wind power facility costs between $1 million and $2 million per megawatt of capacity.
How much subsidies do wind power developers get?
At the federal level, the production tax credit and double-declining accelerated depreciation can pay for two-thirds of a wind power project. Additional state incentives, such as guaranteed markets and exemption from property taxes, can pay for another 10%.
Is wind energy subsidized more than other forms of electricity?
In absolute dollars, the support of wind energy is small compared to other forms of electricity. That is because the contribution of wind energy is minuscule. Per unit of energy, however, the subsidies for wind seem to be much greater. It could be argued that it is worth it if it helps clean the air, but there is no evidence that wind power does so.
What is the Production Tax Credit (PTC)?
The federal production tax credit (PTC) currently provides 1.9 cents for every kilowatt-hour of a privately owned wind turbine's production for ten years.
What is a Renewable Portfolio Standard (RPS)?
A renewable portfolio standard (RPS) is a state mandate that utilities buy a certain percentage of their power from renewable sources as they are defined by the statute. The RPS typically sets up a lucrative artificial market in "green credits." The industry is working hard to impose a national RPS.
What is a green tag, or renewable energy certificate (REC)?
Renewable portfolio standards usually include a provision to allow buying "green tags," also called renewable energy certificates or credits (or renewables obligation certificates, ROCs, in the UK), instead of actual "green energy."
The theory is that if there is not a local source of renewable energy, a utility can thus support renewable sources elsewhere. The weakness of such a system is that the renewable generator sells its energy twice, once as real energy and again as a green tag (or credit). The buyer of the green tag is therefore not in fact reducing the use of "nongreen" energy. It may not surprise the reader to learn that green tags was a scheme invented by Enron.
Since the wind is free, will wind power reduce my electric bill?
The wind is free, but the turbines and their maintenance aren't, not to mention the transmission infrastructure that must be overbuilt to support them. Subsidies are designed to keep the price competitive with other sources but not lower. And if the price is indeed lower, as with all of our energy it's because more of your taxes are going to the wind power companies.
Do wind turbines affect property values?
A survey of property assessors in the UK found that a nearby wind power facility lowers property values by up to 15% a year for two years, after which the effect starts to level out. In the US, neighboring residences are often bought by the wind power company, which then rents them to people who agree not complain about the noises and vibration.
In the discussion of property values, it must be remembered that in most places they generally increase steadily. So any slowing down of that normal rise because of the construction of wind power facilities is in fact a loss of value.
Common sense says that given two otherwise identical properties, the one that is not next to an industrial wind power facility or whose view does not include such a facility is likely to be considered more valuable.
How much taxes do wind power facilities pay to communities?
The usual arrangement is arranging "payment in lieu of taxes" (PILOT), so that the wind power company controls what it pays. When they are forced to pay their fair share in taxes, they typically contest it, forcing communities to spend lots of money in legal fees.
In many cases if a community does get a "windfall" from the company, the state adjusts its payments so that the financial gain is largely cancelled.
In addition, the presence of a wind power facility is likely to drive down the value of surrounding properties, thus causing a loss of tax revenue that cuts into the possible gain.
How many jobs does a wind power facility create?
Construction of a wind power facility creates a lot of jobs for roadwork, excavation, and cement hauling, but they are temporary. The specialized work of installing the turbines is typically done by people the turbine manufacturer brings in from outside of the community. After the turbines are connected, one permanent, typically low-paying, job per 10-20 megawatts of capacity is the average.
www.wind-watch.org
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It is admirable to want to save our environment, but we do not have the right to sacrifice health, safety and quality of life to accomplish that goal. We are not fighting the solution to save our environment, we are fighting to be part of a better solution.
With 49 years as a power engineer, going from engineer apprentice to manager of power supply for approximately two-thirds of rural Illinois, my blood curdles when I read some of the rabid pro-windmill articles rampant in the press these days.
Statements like "the wind is free" (then why do they need the massive tax breaks and subsidies) and "this wind farm will supply 35,000 homes," neglecting to finish the sentence with "for maybe 25 percent of the time, if you are lucky."
One has to come to the conclusion that these people do not even understand simple arithmetic let alone the power situation in the United States or, heaven forbid, the world.
It takes about 800 X 1000MW power plants or the equivalent to run this country on a daily basis. To be conservative, let's say 700 X 1000MW plants. Power demand in the U.S. increases a little over 2.5 percent per year, but again, to be very conservative, let's say 2 percent.
This means that we must build at least 14 X 1000MW power plants every year just to keep up. Windmill enthusiasts would of course have us build 7000 X 2MW windmills instead, blissfully ignoring the fact that the 14 X 1000MW coal or nuclear plants would still have to be built to fill the considerable gap left by the non-operating windmills when the wind didn't blow.
Customers would thus have to pay for two very expensive power plants to cover just one block of power. None of this would reduce the present CO2 load on the environment even if the windmills could run 100 percent of the time. What do we do then....build 350,000 X 2 MW windmills?
Jim Greenwood
Two Rivers
Description
The promise of green jobs and a clean energy future has roused the masses. But as Robert Bryce makes clear in this provocative book, that vision needs a major re-vision. We cannot — and will not — quit using carbon-based fuels at any time in the near future for a simple reason: they provide the horsepower that we crave. The hard reality is that oil, coal, and natural gas are here to stay.
Fueling our society requires more than sentiment and rhetoric; we need to make good decisions and smart investments based on facts. In Power Hungry, Bryce provides a supertanker-load of footnoted facts while shepherding readers through basic physics and math. And with the help of a panoply of vivid graphics and tables, he crushes a phalanx of energy myths, showing why renewables are not green, carbon capture and sequestration won't work, and even — surprise! — that the U.S. is leading the world in energy efficiency. He also charts the amazing growth of the fuels of the future: natural gas and nuclear.
Power Hungry delivers a clear-eyed view of what America has in the tank, and what's needed to transform the gargantuan global energy sector.
About the Author
Robert Bryce has been producing industrial-strength journalism for two decades. His articles on energy and other subjects have appeared in dozens of publications ranging from the Wall Street Journal to Counterpunch and Atlantic Monthly to Oklahoma Stripper. He is the author most recently of Gusher of Lies: The Dangerous Delusions of Energy Independence. Bryce is also the managing editor of Energy Tribune. He lives in Austin.
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