Texas Windpower: Will Negative Pricing Blow Out the Lights? (PTC vs. reliable new capacity)
Ed. note: This post by Josiah Neeley, originally published at MasterResource in November 2012, predicted the decline of reliable (dispatchable) power a decade before Storm Uri, the subject of yesterday’s post. Meanwhile, climate/renewable activists such as Chris Tomlinson (Houston Chronicle) was calling out the ‘fossil fuel-supporting Chicken Littles‘. Tomlinson (et al.) misinterpreted the event by focusing on the physical ‘why’ instead of the economic ‘why behind the why’ (here, here, and here).
“It is well known that Texas is undergoing a major challenge in maintaining resource adequacy due to improper price signals; less well known is that a significant portion of the problem can be laid directly on the doorstep of subsidies for wind generation.”
The federal Production Tax Credit (PTC), which currently provides a $0.022/kWh subsidy to qualifying renewables, is set to expire at year-end.…
The post Texas Windpower: Will Negative Pricing Blow Out the Lights? (PTC vs. reliable new capacity) appeared first on Master Resource.
Source: https://www.masterresource.org/texas-blackout-2021/texas-windpower-negative-pricing-blow-out-the-lights-neeley/
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