Tuesday, April 2, 2013

Finally! Some Common Sense About Wind Energy

Article from a CEO of a wind energy company, Patrick Jenevein, in today's Wall Street Journal,

Government subsidies to new wind farms have only made the industry less focused on reducing costs. In turn, the industry produces a product that isn't as efficient or cheap as it might be if we focused less on working the political system and more on research and development.

After the 2009 subsidy became available, wind farms were increasingly built in less-windy locations...meanwhile, wind power-prices have increased to an average $54 per megawatt-hour, compared with $37 in 2005.

In how many industries, when supply increases do prices go up? Not many. The article ends,

Without subsidies, the wind industry would be forced to take a hard fresh look at its product. Fewer wind farms would be built, eliminating the market-distorting blog. And, if there is truly a need for wind energy, entrepreneurs who improve the business's fundamentals will find a way to compete.

Remove the subsidies and 'green' energy mandates and let the wind industry compete. May the best form of energy win!

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