Articles filed under Taxes & Subsidies
Wind farms were paid up to £3 million per day to switch off their turbines and not produce electricity last week, The Telegraph can disclose. Energy firms were handed more than £12 million in compensation following a fault with a major power line carrying electricity to England from turbines in Scotland.
So-called 'constraint payments', a sort of compensation, have been paid to energy firms in charge of wind farms, when demand for electricity falls or winds are too strong for turbines to operate. These costs are added to consumers' electricity bills. ...According to the Renewable Energy Foundation, 2018 was a record year for constraint payments, reaching a staggering £124,649,106 - surpassing the total in 2017 of £108,247,860.
Allocations to climate policy have more than doubled in recent years, while emissions have basically ceased to decrease. In the government's budget for 2020, 12.6 billion is allocated for climate policy, compared with 5.2 billion in 2014. But despite this, emissions no longer decrease. Last year, emissions increased even marginally.
SolarReserve doesn’t rank among the winners. Instead, it’s mired in litigation and accusations of mismanagement at Crescent Dunes, where taxpayers remain on the hook for $737 million in loan guarantees. Late last year, Crescent Dunes lost its only customer, NV Energy Inc., which cited the plant’s lack of reliability. It’s a victim, ironically, of the solar industry’s success over the past decade.
The wind energy companies argue that the construction is being driven by the markets and demand. A more likely explanation is that there was a rush to build these projects in order to capitalize on a subsidy which was set to expire last year. Wind companies had to break ground on their projects before the end of the year to get in on it. I call it a bubble because that's what inevitably happens when the government creates artificial demand for something with a subsidy. We should build wind farms because they make sense for our energy grid, not to harvest tax dollars.
The wind power tax credit is currently worth 1.5 cents for every kilowatt-hour of electricity produced. The credit’s value began dropping in 2017 and was scheduled to be phased out completely next year. The extension will benefit developers of mainly land-based wind projects, but offshore wind proponents expressed frustration that there was no specific provision for their nascent industry.
The most recent figures available, from a 2017 study by Flatland, a Kansas City-based public broadcasting system, show payments to counties range from $1,000 to $6,500 per megawatt produced. Marion County’s agreements place it near the bottom for payments for wind farms in the state.
Because so much wind power is already on the grid, the growth of other resources, such as solar and storage, is inevitable, King said. “If you keep installing more wind power, but what you need is power capacity for the middle of the day in the summer, then installing another wind turbine becomes too defeating and not helping,” he said.
A cutting-edge wind farm paired with battery storage cannot advance under what developers are calling unworkable terms set by Montana’s Public Service Commission. The PSC put the overall avoided cost of the energy at $6 a megawatt hour effectively killing the project, according Caithness.
WASHINGTON - More than 25 years after Congress created tax credits to encourage the development of renewable energy, wind turbines and solar panels will soon have to fend for themselves as they never have before.
The House passed a tax extenders package this week that includes a one-year extension of the production tax credit (PTC) for wind but failed to move forward an investment tax credit (ITC) provision for offshore wind power.
After millions of dollars were spent developing the project, the suit claims, the county revoked the project’s property tax incentives, adopted rules making a building permit impossible and then rushed to pass a zoning ordinance when the company threatened to sue. The county disputes Sugar Creek Wind’s complaints and said it would “vigorously defend” the suit.
While he welcomed the House’s inclusion of a multiyear phaseout of a biodiesel blenders credit that is a top personal priority as “good news,” Grassley pointedly questioned the extension of key wind and solar breaks that Congress enacted in 2015 on the condition they be phased down. “Both were considered a mature industry that could get by without a tax credit,” he recalled of the 2015 negotiations that led to the phaseout of the wind production tax credit and investment tax credit most commonly associated with solar. “I’m not sure why they’re extending that when the industry agreed to that.”
Expedition’s proposed of er pays twice the rate paid to Marion by Diamond Vista A draft of the proposed agreement between Marion County and developers of a proposed wind farm shows the company is offering twice the per-megawatt rate the county is paid by Diamond Vista wind farm in the northern portion of the county. The proposed rate is $1,800 per megawatt over the first 10 years the wind farm operates.
Offshore wind power is the most expensive alternative-energy source, and Cuomo has boosted these projects’ costs by requiring union labor. To hide the bad news, NYSERDA has to play games. Maybe that’s why, as the Empire Center also reports, its officials have the highest average pay of any state authority.
“Since the business case is being impacted by external delays, we are requesting an extension from the IRS for the originally planned ITCs of the project,” Torgerson told analysts. “We’re petitioning the IRS to get an extension of that ITC at the 24 percent level…through the 2022 timeframe.” The delay means Vineyard may be able to upgrade to longer rotor blades for its 9.5-megawatt MHI Vestas turbines, Torgerson said — jumping from a 164-meter rotor diameter up to 174 meters. Longer blades mean more electricity can be generated.
That particular program ended in 2016, but investors who had projects in progress could keep taking the credits until they had used them up. Some people involved in solar projects created partnerships not only with energy companies but also with banks, insurance companies and other institutions that essentially bought the tax credits. Then last fall, the Revenue Department said it wasn’t going to allow the tax credits in some of those partnership deals that had been used to pay for solar energy projects.
Last week the lobbying arm of the wind energy industry made an unsurprising, though somewhat embarrassing, announcement. It wants a longer lifeline with federal subsidies. So much for wind being the low-cost energy source of the future.
To determine how PPA offer prices have shifted from Q2 2019, LevelTen analyzed data on approximately 600 price offers from more than 360 renewable energy projects across the U.S. In Q3, PPA offer prices rose overall, quarter to quarter.
Less than a year after the U.S. wind industry swore off federal tax credits, its top lobbyist wants another go at the incentive that helped it become the cheapest source of new energy in much of the world.