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Wind Energy: the wheels are coming off the gravy train
The wind energy industry has been having a hard time. The taxpayer funding that has kept it alive for the last twenty years is coming to an end, and those promoting the industry are panicking.
Perhaps this current wave started when one of wind energy’s most noted supporters, T. Boone Pickens, “Mr. Wind,” in an April 12 interview on MSNBC said, “I’m in the wind business…I lost my ass in the business.”
The industry’s fortunes didn’t get any better when on May 4, the Wall Street Journal (WSJ) wrote an editorial titled, “Gouged by the wind,” in which they stated: “With natural gases not far from $2 per million BTU, the competitiveness of wind power is highly suspect.” Citing a study on renewable energy mandates, the WSJ says: “The states with mandates paid 31.9% more for electricity than states without them.”
Then, last week the Financial Times did a comprehensive story: “US Renewables boom could turn into a bust” in which they predict the “enthusiasm for renewables” … “could fizzle out.” The article says: “US industry is stalling and may be about to go into reverse. …Governments all over the world have been curbing support for renewable energy.”
Michael Liebreich of the research firm Bloomberg New Energy Finance says: “With a financially stressed electorate, it’s really hard to go to them and say: ‘Gas is cheap, but we’ve decided to build wind farms for no good reason that we can articulate.'” Christopher Blansett, who is a top analyst in the alternative-energy sector in the Best on the Street survey, says, “People want cheap energy. They don’t necessarily want clean energy.”
It all boils down to a production tax credit (PTC) that is set to expire at the end 2012. Four attempts to get it extended have already been beaten back so far this year–and we are only in the fifth month. The Financial Times reports: “Time-limited subsidy programmes…face an uphill battle. The biggest to expire this year is the production tax credit for onshore wind power, the most important factor behind the fourfold expansion of US wind generation since 2006. Recent attempts in Congress to extend it have failed.”
- “To maximize WindPAC’s inﬂuence, WindPAC will increase the number of fundraisers we hold for Members of Congress.”
- “Continue the Iowa caucus program to ensure the successful implanting of a pro-wind message into the Republican presidential primary campaign.”
- “Respond quickly to unfavorable articles by posting comments online, using the AWEA blog and twitter, and putting out press releases.”
- “Continue to advocate for long term extension of PTC and ITC option for offshore wind.”
- “AWEA requested a funding level of $144.2 million for FY 2012 for the Department of Energy (DOE) Wind Energy Program, an increase of $17.3 million above the President’s Congressional budget request.”
A wind turbine manufacturer quoted in the Financial Times article says, “If the PTC just disappears, then the industry will collapse.” Regarding United Technologies plans to sell its wind turbine business, chief financial officer Greg Hayes admitted: “We all make mistakes.”
Despite twenty years of taxpayer funding, according to the Financial Times, “Most of these technologies are unable to stand on their own commercially, particularly in competition with a resurgent natural gas industry that has created a supply glut and driven prices to 10-year lows.” The WSJ opines: “the tax subsidy has sustained the industry on a scale that wouldn’t have been possible if they had to follow the same rules as everyone else.” A level playing field would mean that wind developers would lose the exemptions from environmental and economic laws.
It is the fear of having to play by “the same rules as everyone else”–like the free market does–that must have propelled the anti-fossil fuel Checks and Balances Project to dig deep to unearth a “confidential” document. The brainstorming document was designed to trigger conversation during an initial meeting of grassroots folks with a common goal–the document’s author didn’t even join us and his ideas received little attention. The meeting was February 1 and 2. I was there. But suddenly, on May 8, our little meeting is in the news.
Many of us who were at the meeting received calls from a variety of publications including The National Journal, The Washington Times and Bloomberg News--none of whom ran with the story (after talking to a number of us, the Bloomberg reporter concluded “I don’t think we’re writing a story about this”)–and The Guardian who did. The Guardian story was picked up and expanded on in Environment & Energy (the reporter did talk to several of us), HuffPost, Tree Hugger, Think Progress’ Climate Progress, and others. (Note: Climate Progress and Tree Hugger remove any comment in opposition to wind energy as soon as it is posted.) High Country News has apparently done an original story trigged by the Checks and Balances press release. From these sources, some form of the story is all over the Internet.
The wind energy industry panic explains the sudden interest, but why our little group?
Washington Examiner columnist, Timothy Carney, provides the answer: “AWEA plans ‘continued deployment of opposition research through third parties to cause critics to have to respond,’ the battle plan states. In other words: When people attack AWEA’s subsidies, AWEA might feed an unflattering story on that person to some ideological or partisan media outlet or activist group.” We are the people who have attacked the subsidies and AWEA has, through a “third party” fed “an unflattering story” to a “partisan media outlet.” Our collaborative actions have helped block the PTC extension efforts.
A common thread in the news stories is that we are really an oil-and-gas funded entity. They’ve tied us to the Koch Brothers. We all wish. Apparently they can’t believe that individuals and local groups can think for themselves and impact public policy without a puppet master telling us what to do and say.
In fact, the group has no funding. As we began to email back and forth over the sudden reporter interest, one meeting attendee quipped: “My trip was funded, in part, by MY brother, Paul, who donated frequent flyer miles for my trip. I can assure you that my brother is not part of the Koch family. I paid for the rest of the trip out of my own pocket.” Yet, the reporters seemed determined to find a funding link. I told the Bloomberg reporter that we each paid our own way, that the meeting was held in a budget hotel outside of DC (unlike the AWEA meeting held at the prestigious La Costa Resort & Spa in Carlsbad, CA), and that we each had to pay for our own transportation, food, and lodging. My comments never made it into print. In the spirit of full disclosure, I am the executive director of companion organizations that do receive funding from oil and gas companies and individual donors. But I, like the others, was invited as an individual, not as a member of any organization.
Additionally, we are not even a formal group. We met to consider forming a group. The “leaked” memo, addresses finding a group that might absorb us, affiliate with us, or align with us.
Attendees brought their individual issues, observations, and successes. Each had valid insights to contribute. Some viewed health impacts as the most important ammunition. Others, economics. Some, setbacks or bird deaths or land use. Others, including the meeting’s organizer, John Droz, believe that the science–or lack thereof, is the best weapon. There are so many reasons to oppose wind that come down to government use of taxpayer money to support something that raises electricity prices based on the failed concept of man-made global warming. As a result of the meeting, we now know we are not alone, and we can call on one another for insight and advice.
We owe a debt of gratitude to Gabe Elsner, a co-director of the Checks and Balances Project. Without his discovery and subsequent exposure of the “document,” we’d still be just loosely affiliated individuals and small citizens’ groups. The attack has emboldened us and helped others find us! A representative from the Blue Mountain Alliance sent Droz an email stating: “I probably need to send them a thank you note for leading me to you and your efforts.”
After the murmurings became known, one of the meeting attendees, Paul Driessen, wrote a detailed and data-filled column, “Why we need to terminate Big Wind subsidies,” which has garnered more than 700 Facebook “likes” on Townhall.com. (To give perspective, I am pleased if I get 50 “likes.” Each “like” generally represents thousands of readers.) In just a few days, his column is all over the Internet.
Wind energy has more opposition than most people realize, and Elsner, who has served as the “third party” in the AWEA strategy, has allowed us to find one another. While a few attendees at the DC meeting were concerned about all the publicity, attorney Brad Tupi, who has represented citizens victimized by wind energy projects, responded: “I would plead guilty to participating in a meeting of concerned citizens opposed to wasteful, unproven, inefficient wind energy. I would agree that we are interested in coordinating with other reputable organizations, and I personally would be honored to work with Heartland Institute and others.”
If you do not support industrial, tax-payer-funded, wind-energy projects that are promoted based on ideology and emotion rather than facts and sound science, you can benefit from our affiliation. Droz has a wonderful presentation full of helpful information. A few of the websites from the meeting attendees include: Illinois Wind Watch, Coalition for Sensible Siting, Energy Integrity Project, and Citizen Power Alliance.
The lesson to be learned from the attack on these hard-working citizens is that the little people can make a difference! We’ve got the subsidy-seeking, wind-energy supporters running scared–along with the crony capitalism that accompanies them. Remember, “If the PTC just disappears”–meaning if we do not keep giving them taxpayer dollars–“then the industry will collapse.” Your phone call or email to a Senator or Congressman, such as Steve King or Dave Reichert who recently came out in support of the PTC, can make a difference. Tell them, as the WSJ said, “If the party is serious about tax reform…it will vote to take wind power off the taxpayer dole.”
It is time for the AWEA and the politicians who support the PTC to explain why higher electricity costs, human health impacts, substantial loss of property values in rural communities, dead bats and birds, and increased national debt are good for America and her taxpayers!
The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes AmericaGreat Inc. and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). Together they work to educate the public and influence policy makers regarding energy, its role in freedom, and the American way of life. Combining energy, news, politics, and, the environment through public events, speaking engagements, and media, the organizations’ combined efforts serve as America’s voice for energy.