Since President Barack Obama brought it up, repeatedly, last week during his campaign swing through Iowa, wind power has emerged as one of the most clear-cut issues of the political season.
Obama wants to renew the technology’s soon-to-expire federal production tax credit. Mitt Romney, his Republican opponent, wants to let the credit lapse.
Yet the best way to handle this is to find an option other than all or nothing. Yes, clean wind energy should receive continued federal support, as Obama says - especially at a time when the industry’s tens of thousands of jobs are helping the U.S. economy. But wind power should also be expected to make it in the marketplace on its own one day, as Romney would have it.
Onshore wind power has improved to the point where it is now the most competitive of all renewable energy sources except hydropower. According to recent estimates from Bloomberg New Energy Finance, it is on a path to reach “grid parity” — the point where its cost is equal to the baseline price of power on the grid — starting in 2016. In the long run, in other words, wind can be expected to thrive without the tax credit.
A clear plan to phase out the credit over the coming four years could actually be a gift to the wind industry, which has suffered from the federal program’s unpredictability, even as it has benefited from its support. The 2.2-cent tax credit, paid to wind-energy companies for every kilowatt-hour of power they produce, has brought the industry more than $1 billion a year, according to the Joint Committee on Taxation. Yet over the two decades it has existed, Congress has allowed the credit to expire three times, and each time progress in building wind capacity has fallen precipitously.
With companies rushing to finish before another expiration on Dec. 31, building this year has reached a record high. About 11,800 megawatts worth of projects are expected to be completed this year, according to Bloomberg New Energy Finance. Next year, construction is expected to plummet to 1,500 megawatts if the tax credit is not renewed. Even if Congress decides after the presidential election to extend it a year, the amount of building would be well under half what is anticipated for 2012, as it would take some time for the industry to ramp up its plans.
Renewing the tax credit would at least enable the wind industry to return to growth, adding 54,000 jobs over the next four years, according to the American Wind Energy Association, an industry trade group. Letting the credit expire, on the other hand, would mean losing 37,000 jobs in the sector.
The job market is not the main reason wind power is worth supporting. It’s a clean energy source, with a promising economic future as the cost per turbine continues to fall. Its prospects will become even brighter if natural gas prices, now extraordinarily low, rise in the coming years with increasing demand.
If Congress takes the easy route and simply extends the credits for a year or two, it would only perpetuate the wind industry’s boom-and-bust cycle. A smarter solution is to apply the longer-term planning that is critical to good energy policy.
Let the wind industry know the production tax credit will eventually die out, but over four years - so companies are able to plan their operations without the need to guess what tax support they will have.
Even smarter would be to ultimately replace the tax credit with market-based support for wind as well as other forms of clean energy. Many states now have so-called renewable portfolio standards, which require utilities to use a certain percentage of electricity generated by wind and other kinds of renewable power. These states set a target, in other words, and the market figures out the most efficient way to reach it.
One very good suggestion for a federal program along these lines has been proposed by Sen. Jeff Bingaman, D-N.M. This year, he introduced a bill that would establish a “clean energy standard,” requiring large U.S. utilities to derive an increasing share of their energy from cleaner energy sources — not only renewables such as wind and solar but also natural gas and even coal with carbon capture and storage. No federal expenditure would be required.
Politicians in both parties should find that a virtue. Republicans from the Great Plains and other areas where the wind industry is growing substantially already seem disposed to extend the production tax credit. They could do far more for the U.S.’s energy future if they considered longer-lasting ways to help the wind business succeed.
Comments (41)
Add commentWe need a carbon tax that
We need a carbon tax that takes climate change costs into account. It can be used to reduce payroll taxes and be tax neutral.
That is the ONLY way the free market will work for us.
We also need to stop subsidizing the oil industry and put those costs on the pump price.
Unproven theories should not result in real taxes...
...there is no way to determine what role, if any, carbon emissions play in climate changes, but all signs point to the sun as being the major culprit. How are you going to tax the sun, Fish?
Im on my way toTampa , Ive rewritten Science & History Textbooks
In keeping with the education system in Texas.
My next project / book will be called why we absolutely need to "Keep the Oil Co. subsidy Alive " . So growing seasons will continue to get longer....
All this new fangled technology & science stuff , is nothing but a fad , you know like hula hoops.
I certainly hope that Mars rover thing can drill for oil... Im getting free natural gas from my kitchen faucet now.
If you were going to Tampa
You would be a breath of fresh air to that group meeting there!
Stuck @ MSP , Another Delay
Im on the Ryan family charter flight ( Koch Bros ,bought all seats) its actually a regularly scheduled Delta flight.
Those TSA people are having a problem with Thing , and Uncle Festus. Neither has a current drivers license.
Now they want to charge me $100 to check my ," Alternative Energy Is a Liberal Ploy " sign.
The good news is were all getting double miles RT and free Lobster dinners , Thanks to Norm Colemans Super Pac....
Norm did not ever just care about Hockey , like that Al guy said. Gotta go they took the handcuff off thing ,were boarding .....
Johan ,Im Afraid the Answers You Seek , Are Not Available Here !
Your going to have to dig a little deeper yourself.
I would suggest you start at a public library . Those professionals help all kinds of people.
Actual real people of science hold the key to your quest for information on whats actually , REALLY happening to the planet.
Beware of drug store cowboy ( authors) , like Mike Huckabee , who edit material to influence perceptions .
Pilot says time to "shut off devices" Good Luck with that reading thing !
Johan ,Im Afraid Your Really Confused About Things In General
Sure" hate "to impact your educational experience @ that library place but , The REAL Question is Actually - Not When , but wait for it ************************ WHY ??? . No more clues .
Wind power is here to stay ,oil ,gas & coal are slowly going away for other reasons you may yet discover, if you do your homework, and try to keep an open mind...... .
I thought school started today , are you suspended or something ?
Johan
maybe captron can give rolf a call for the answer of your questions (or maybe he has given rolf a call because he seems to give the same non answers rolf does). Now quit bothering them and let them think everyone believes climate change, global warming , or whatever they choose to call it next is all caused by man over the past 60 years because of oil consumption
According to John Droz, Jr,
a physicist and environmental activist, the only thing green in in wind energy is the substantial profit being made by the developers and their paid supporters. All independent evidence to date indicates that industrial wind power fails on three key conditions:
a) its technical performance, b) the economics of the power produced, and c) its FULL environmental impact.
Meanwhile captron, you and Al can exchange views on rape. I understand he likes it, according to his writings!
Help for Johan
I'll be speaking on climate change for the Unlimited Learning program in Crosby on September 11. The program will review climate history.
As to solar output mentioned earlier, we started satellite measurements about 40 years ago. Aside from a slight variation with the sunspot cycle, there is little change in solar luminescence, and it is not the cause of the current warming.
The glacial cycles in the present Pleistocene Epoch are thought to be caused by variations in the earth's tilt and orbit. You can Google Milankovitch and get details on this.
The current earth warming cycle which started in the mid 1970s is slow and so far about a degree F or so. That's the same amount as the natural warming in the Medieval Optimum and later in the recovery from the so-called Little Ice Age.
Rolf
More on Sept 11 program
http://www.unlimitedlearning.net
The Status of Global Warming
Tuesday, September 11, 1:30-3:30p.m.
Warmer winter, earlier spring, less snow and abundant tornadoes already in 2012… If you are you pondering the climate changes that we’re experiencing this year you won’t want to miss this presentation with the facts about global warming and the current thinking that prevails.
Rolf Westgard, MBA, GSA, Nuclear Energy Expert & Columnist
More for Johan
Actually, since the Cambrian Explosion(about 500 million years ago) when more complex life appeared, the earth's climate has been fairly stable - maintaining an average temp well within the freezing and boiling points of water so life could continue. This happened despite the sun being much fainter in the Cambrian. The faint sun was balanced by the higher level of green house gases, especially CO2.
The sun is very slowly getting hotter, and 500 million years from now will likely evaporate the oceans, and we will all need to head for Tantooie or one of those other Star Wars planets.
Rolf
What do you think the comment section of the dispatch will be like in 500 million years??
"and we will all need to head
"and we will all need to head for Tantooie or one of those other Star Wars planets."
that was a long time ago ....
Note to Rolf , Or I mean Mr Westgard RE: Global Warming
Im afraid some people on here seek simple & short answers, consistant with their misconceptions.
I certainly do know one thing for sure ,it would be more appropriate for some on here to refer to you as Mr Westgard going forward. Thanks for pointing everyone in the correct direction , Johans mom was probably at the breaking point over this whole global warming deal and his refusal to believe science or read.
Your Unlimited Learning programs as outlined on your your site, seems to cover a whole host of current issues as well as being presented by actual educated credible speakers, with relevant experience in their field .
Sun is shining here in Tampa !
Wind power
will not be here to stay, it is unreliable and unsustainable. Nothing but a liberal answer to make you feel warm and fuzzy. When the wind stops, guess what, the wind generator stops. Isn't that amazing?
finally, a rational viewpoint
I'm happy to see the Dispatch feature an article that fairly examines the renewable side of America's energy challenges. (I tired of the local energy "expert" pontificating at every opportunity, and I quit responding to the biased & often inaccurate swill). The wind industry is at the cusp of freeing themselves of government intervention, as the price of wind turbines has dropped nearly 20% the past few years while efficiencies has increased dramatically. I have seen newer wind farms in proper locations producing over 50%; the 27% figure bantered about is nationally, which includes turbines placed in low-wind regimes.The wind industry is expecting and would welcome a 4 year wind down, but Congress doesn't often work that way.
For those of you who don't get out of armchair and see the world, climate change is real, like it or not. At least check out the Washington Post, August 5th story by James E. Hansen. Mr. Hansen heads the NASA Goddard Institute as a physicist and climatologist and has testified before the US Senate warning of climate change for over 20 years. Even better, check the NYT on 7/28 as Richard Muller, a UC professor of physics, who for years fought the idea of climate change now says hard scientific evidence confirms it is true and we're all most likely to blame.
Denton, this:
The Status of Global Warming
Tuesday, September 11, 1:30-3:30p.
Looks a lot like Spam or a commercial solicitation that you would normally delete.
OR, IS IT FREE, Rolf?
just sayin'
FnB
There is a modest annual fee to attend for one year's programs. You can attend Sept 11 FOR FREE.
There is nothing to sell, so I don't know where the SPAM comes in.
Rolf
I went to the site, Rolf.
Do you get a fee for speaking at all those presentations?
For Johan
Wind never has, and probably never will, replace coal or gas. We rarely use oil for large electric power plants. Too expensive.
The way in which molecules with 3 or more atoms resonate with the earth's IR takes up 62 pages in an atmospheric chemistry text. I'll simplify it for you if you show up on Sept 11.
Wind power production versus other sources in 2011
In British Thermal Units(BTU):
Total US production was 78 quadrillion BTUs(quads).
Wind produced 1.17 quads.
Nuclear was 8.26 quads.
Coal was 22.2 quads.
Natural gas at 23.5 quads.
Oil was 12 quads(more was imported).
Hydro produced 3.2 quads.
Solar produced one sixth of a quad.
Biomass at 1.5 quads.
Rolf
Rolf,
about that fee? Just a modest stipend?
Fee
Very low 3 figures.
Fees
I have several speaking engagements in the next 60 days. Only one pays a fee - the American Association of University Women in Minneapolis.
REW
Ahh, yes, we know,
just enough to cover expenses while you do your civic duty.
Bill Clinton only made about $20 million last year speaking. A true 1 percenter, that Bill is.
Yea for the AAUW!
Go teach them, Rolf!
Quoting current energy output
Quoting current energy output of the various sources is irrelevant.
At one time America had only 50 cars and now look.
At one time America was dependent on whale oil and now look.
Things change and hopefully the so-called "conservatives" will get out of the way and we can start to work seriously on energy conservation.
Have you ever seen the wind farms in Southern Minnesota, Fish?
They are a blight on the countryside. The same people who freak out about a cell tower in the BWCA, have no problem with the legion of white spinning Titans that litter the countryside in order to produce a fraction of the energy that one nuclear power plant could generate.
fish
a great start for energy conservation would be you turning your computer off.