Phase-Out of the Federal Wind Tax Credit a Good Thing?

By John Farrell, Clean Technica:

Energy and Environment News has a very long story on a new angle for the federal wind tax credit debate: a phaseout. This article raises several issues, apart from that policy strategy, that are worth a quick discussion.

1. Why Would Wind Compete with Natural Gas?

The article waxes long about the trials of the wind industry in the face of low natural gas prices, implying that utilities choose new natural gas power plants over wind power on the basis of price. I’m a bit skeptical.

Wind power is inflexible, meaning utilities have to take the power whenever the wind blows. Natural gas power plants have typically been flexible, used to provide peaking power to meet rapid changes in electricity demand. From the perspective of adding new power supply, the two aren’t competitors… Read more

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