Patrick Jenevein, CEO of the Dallas-based Tang Energy Group, wrote a Wall Street Journal article called, 'Wind-Power Subsidies? No Thanks.'
The subheading reads: "I'm in the green-energy business. If Washington sent a little less 'green' our way, it would be good for the industry."
In part of it, he writes:
"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, according to the Department of Energy's "2011 Wind Technologies Market Report." The average wind-power project built in 2011 was located in an area with wind conditions 16% worse than those of the average project in 1998-99. "
For example, Clinton County's wind power classification is 'marginal' or 'poor', according to the U.S. Department of Energy.
He finishes by writing:
"The wind industry has largely been out-competed by natural gas, which has proved to be a clean, reliable and cheap power source for the future without subsidies or even venture-capital funding. As such, my company isn't planning any new investments in the wind business, even though we would love to still be worth the $2 billion we were several years ago.
Of course, we could yet be proven wrong by technological innovation. 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 glut. And if there is truly a need for wind energy, entrepreneurs who improve the business's fundamentals will find a way to compete."
You can read the entire article here.
