The Problem With Green Energy

A wind turbine at Greenpark, Reading, England,...

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Green energy is a great idea. Unfortunately, we haven’t reached the point where it makes economic sense. I suspect we will get there in the near future, but we are not there yet. When the United States or other governments try to force the issue, they run into problems. (See rightwinggranny.com from March 8, 2011, which explains what has happened with green energy in Spain). Now it’s the Netherlands’ turn.

On Wednesday, November 16, Reuters reported that the Dutch government is preparing to end its subsidies of offshore wind power. There are 36 turbines in the North Sea that produce enough electricity to meet the needs of more than 100,000 households each year. Because of the need to cut its budget deficit, the Dutch government says it can no longer afford to subsidize the entire cost of offshore wind power (18 cents per kilowatt hour–4.5 billion euros last year).

The article reports:

The government now plans to transfer the financial burden to households and industrial consumers in order to secure the funds for wind power and try to attract private sector investment.

It will start billing consumers and companies in January 2013 and simultaneously launch a system under which investors will be able to apply to participate in renewable energy projects.

But the new billing system will reap only a third of what was previously available to the industry in subsidies — the government forecasts 1.5 billion euros every year — while the pricing scale of the investment plan makes it more likely that interested parties will choose less expensive technologies than wind.

The outlook for Dutch wind projects seems bleak.

There will come a day when green energy is practical. Today is not it. When the government interferes with the free market, bad things happen.

 

 

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