Stories tagged with "stimulus"

Wind power set to decline under Obama?

Posted by Jerome a Paris on January 31, 2009 - 11:04pm in The Oil Drum: Europe
Topic: Alternative energy
Tags: original, ptc, stimulus, wind, wind energy [list all tags]

For the fourth consecutive year, the US set records in 2008 for the construction of new wind farms, with more than 8,300MW installed in the year, making the country the leader for both yearly installations and, for the first time in many years, overall installed capacity (nudging out Germany which has long been the world leader). The sector created a record number of jobs at a time when few other sectors did.

But for reasons linked to the inconsistent regulatory framework until now, and to the ongoing credit crisis, 2009 is likely to be a bad year for wind, with a decline in installations and, possibly, layoffs.

Of course, Obama is not to blame for that situation, which he inherits, but it will be a pretty bad signal to see wind power decline significantly this year - and it would be an inexcusable one if that decline continues into 2010. The current stimulus plan does include measures to support the industry, but these seem oddly unambitious given the context of economic crisis and wind's proven ability to create jobs and economic activity, to provide cheap power and to eliminate both carbon emissions and fossil fuel imports.

Earlier diaries: Windpower series

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US Energy Tax: How Level Is the Playing Field?

Posted by Gail the Actuary on January 16, 2009 - 10:57am
Topic: Policy/Politics
Tags: electric grid, gilbert metcalf, solar power, stimulus, wind [list all tags]

A new study has been issued by the Manhattan Institute, called TAXING ENERGY IN THE UNITED STATES: Which Fuels Does the Tax Code Favor? The study was written by Gilbert Metcalf of Tufts University. I also participated in a conference call with Metcalf regarding the report. A couple of Metcalf's findings:

• The tax code is not at all generous with respect to investments in the electric grid. The effective tax rate on these investments is very close to the unadjusted statutory tax rate of about 39%. If investment is to be encouraged in the electric grid, Dr. Metcalf believes that this tax rate must be lowered.

• The current tax code, especially since enactment of the Energy Policy Act of 2005, strongly encourages investment in nuclear, wind, and solar power, which enjoy tax subsidies ranging from nearly 100 percent, for nuclear, to more than 200 percent, for solar. In other words, tax subsidies for these forms of energy generation are sufficiently generous that investors may use them to offset tax liabilities for capital gains and income derived from non-energy investments. The telephone discussion indicated that these provisions are not currently working as intended for wind and solar, because of lack of "tax appetite".

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Upgrading the US Electric Grid - Many pluses but some minuses too

Posted by Gail the Actuary on January 9, 2009 - 11:51am
Topic: Policy/Politics
Tags: electric grid, grid, original, stimulus [list all tags]

President-Elect Barack Obama talks about upgrading the US electric grid. He talks about making it a "smart grid", so that customers can be charged by their time-of-day use, fluctuations from wind and solar can be more easily handled, and it is easier to sell electricity back to the grid. One presumes that he is also talking about upgrading the physical structure of the grid, so that it has better long distance carrying capability and so that parts that are exceeding their normal lives are replaced.

Doing all these things has obvious advantages. Our current grid has been neglected for years, so that many of its parts are nearing the end of their useful lives. Currently, most customers have no incentive for using appliances and machinery at night, during times of excess capacity. This could reduce fuel usage during the day time. Also, as many have noted, to add more wind and solar capacity to the grid, upgrading the grid is a necessity.

In this post, I will offer a few thoughts on the upsides and downsides of the upgrade.

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