Regulation: The high cost of low value wind

Regulation magazine recently published an interesting article on the high costs and market disruptions associated with long-term subsidies to the renewable energy sector. An NCPA review of the Regulation Mag article notes,

Subsidies for renewable energy distort markets and are economically inefficient, driving out legitimate competitors and leading to higher prices in the long run. Despite the evidence that shows the negative effects of renewable energy, there are still those that make an argument for it, says Jonathan A. Lesser, founder and president of Continental Economics Inc. …

Subsidized wind energy also requires additional back up generation, which creates additional costs. Wind generation’s production pattern is not only volatile and unpredictable, it also has low economic value. Subsidized wind energy distorts electricity markets by artificially lowering electricity prices in the short run and leads to higher prices in the long run.

22. May 2013 by Jason Hayes
Categories: Energy, Marketplace Information | Tags: , , , , , | 1 comment