“The PTC is the single most expensive energy subsidy in the federal tax code and is estimated to cost taxpayers about $40 billion from 2018 to 2027.” (IER, January 5, 2021)

“Special government favor to business–corny capitalism–can turn losers into winners. And the loser lobby can claim progress and even inevitability as if they really won. This is the postmodernism of energy policy today in regard to the two politically correct renewables: wind and (on-grid) solar.”

It does not end. What is not competitive and government dependent just continues that way. This is not only because the market picks winners and leaves the losers for politics. It is also because the market-driven, non-subsidized technology improves over time.

Recently, wind power federal Production Tax Credit received its 13th extension. [1] Reported IER:

The U.S. Congress recently passed a massive spending bill that includes $35 billion in energy research and development programs, a two-year extension of the Investment Tax Credit for solar power, a one-year extension of the Production Tax Credit for wind power, and an extension through 2025 for offshore wind tax credits. 

These energy provisions are included in a $1.4 trillion federal spending and tax extension package…. Despite billions of dollars in subsidies and state mandates requiring them, wind and solar power provided less than 10 percent of the nation’s electricity in 2019.

In comparison to the puny government tax favors to oil and gas in electrical generation,

Between 2010 and 2019, the American solar industry got roughly 211 times as much in federal tax incentives as the oil and gas sector, when compared by the amount of electricity produced. And the wind sector received 48 times as much as the oil and gas sector.

Special government favor to business–crony capitalism–can turn losers into winners. And the loser lobby can claim progress and even inevitability as if they really won. This is the postmodernism of energy policy today in regard to the two politically correct renewables: wind and (on-grid) solar.

Appendix: PTC Creation & Extensions

The post Wind Power’s PTC: Chapter 14 (13th extension) appeared first on Master Resource.

via Master Resource

https://ift.tt/3sHOonZ

January 21, 2021 at 01:14AM