On the heels of a recent Forbes blog post where I call out Texas' Comptroller for playing favorites in her biased scrutiny of Texas' wind industry, comes another Forbes piece by James Taylor from the Heartland Institute. Confusing correlation with causation, Taylor claims wind energy causes higher energy prices. However, an increase in electricity prices cannot automatically be accounted for by pointing the finger at wind energy. That’s simply playing fast and loose with the facts.
This is the same tired slant we have heard from Heartland Institute time and time again. Not surprising – when pundits want to cherry pick data to make their argument strong, it doesn’t always work.
First there are many, many factors that determine energy rates, not just one type of resource. In an analysis of utility rates, economists Ernst Berndt, Roy Epstein, and Michael Doane identified 13 reasons why an electric utility’s rates may be higher or lower than the average. They include things like the average use per customer, age of the electricity distribution system, generation resource mix, local taxes, and rate of increases prior to any implemented renewable portfolio standard (RPS). So faulting renewables for high energy prices is a bogus claim. Furthermore, there is no data showing a nationwide pattern of renewable energy standards leading to rate increases for consumers. The report states: “American consumers in the top wind energy-producing states have seen their electricity prices actually decrease by 0.37 percent over the last 5 years, while all other states have seen their electricity prices increase by 7.79 percent over that time period." Further, 15 studies from various grid operators, state governments, and academic experts have examined the impact of wind energy on wholesale electricity prices and confirmed that wind energy reduces electricity prices. Read More
Recently, the Texas Comptroller, Susan Combs, decided to come out swinging against renewable energy, specifically wind, in a report entitled Texas Power Challenge: Getting the Most From Your Energy Dollars. It would be easier to take this report seriously if it applied the same pressure and scrutiny to the oil, gas, and coal industries, which have received subsidies and incentives hand over fist. But, no, the attacks seem to focus only on renewables.
What’s worse is the Comptroller’s report is not based in fact. One of the main points of contention is the CREZ transmission lines that were built to ease the bottle-necked energy congestion in West Texas. Yes, this congestion was partly due to more wind energy on the power grid needing to make its way to cities in the East, but natural gas very much benefited from the added transmission lines as well. Even Railroad Commissioner Barry Smitherman, a Republican ally of Combs', took her to task for this in a statement to the Texas Energy Report: Read More
Last night, EDF, CleanTX, Pecan Street Inc., and Google hosted one of the clean energy events of the season.
We brought everyone in the Austin clean energy community – from legislators to cleantech entrepreneurs to EDF members – together to celebrate the tremendous progress our great city has made as a clean energy leader over the years, serving as an incubator and hub for some of the most exciting and innovative companies in the clean tech sector. After all, it is the collective hard work and dedication of everyone that put Austin on the map as a global leader in the clean energy economy.
We also kicked off the evening with a screening of our new video that highlights what the smart grid is doing for American energy. Set in Austin’s Mueller neighborhood, one of the world’s largest green-built communities and Pecan Street Inc.’s testbed for energy innovation, this short film tells the dynamic story of a clean energy future from within the American home. It gives people who live in a connected community a chance to express what clean energy means to them personally, from independence and innovation to health and reliability. The heroes of the film are ordinary people from the community who are part of this quiet revolution.
Guest Author: Robert Fares, Mechanical Engineering Ph.D. student at the University Texas at Austin
This commentary originally appeared on Scientific America's Plugged In blog.
A vital factor affecting the economics of any energy source is transportation: where is the fuel extracted, where is it used, and how does it get from point A to point B?
An example is the case of Texas versus North Dakota, both of which have experienced a boom in oil and gas production from shale since the introduction of hydraulic fracturing.
Texas, with its long history of oil and gas development, is riddled with underground oil and gas pipelines connecting remote areas of the state with regional trading hubs. Read More
Wind technicians working atop a turbine in Sweetwater, Tex.
Source: NY Times
Earlier this month, Texas Public Utility Commission (PUC) chairwoman Donna Nelson called for the federal government to end its renewable energy tax credit for Texas wind and for the end of state policies that have resulted in Texas’ clean energy economy boon. The chairman’s appeal is so devoid of a factual basis it is hard to conclude that this is anything other than part of an orchestrated campaign by fossil fuel interests to stop the growth of renewable energy. Like the other attacks on clean energy, this is more politics than substance.
The federal and state policies that Chairman Nelson wants to eliminate have been great for Texas. Texas ranks first in the nation for wind-related jobs, employing over 8,000—and many of those jobs are keeping agriculture-heavy West Texas and Panhandle communities afloat amid the devastating multi-year drought. Plus, 60% of all wind projects under construction across the country in the first quarter of 2014 were in Texas. And studies (including one produced by the Texas PUC) have shown that electricity prices are lower when more wind energy is installed on the power grid. Read More
We have a lot to celebrate this Global Wind Day (June 15). Across the nation, wind energy accounted for almost one-third of new power capacity over the past five years and the American Wind Energy Association (AWEA) estimates that wind energy has the potential to double over the next few years.
Nowhere is the growth in wind energy more evident than in Texas, the nation’s top wind producing state. Texas' wind energy generation grew by 13% in 2013 and more than 60% of all wind projects under construction in the first part of the year were in Texas.
This success has been aided by the Renewable Energy Production Tax Credit (PTC), a modest tax credit for new facilities good for ten years after the wind farm’s start date. Like those received by the oil, gas, and nuclear industries, tax incentives help ignite growth in the market. EDF has strongly advocated for this incentive over the past few years.
Unfortunately, the breaks that oil and gas have received over the last 100 years are often (conveniently) ignored by those wanting to maintain the status quo, making the PTC a point of debate among politicians. Read More