Another Close Call

It is a wonder that the wind industry is not only surviving attacks from the political right and its wealthy supporters but is doing remarkably well under the circumstances.

In the recent battles over the “fiscal cliff” the relatively meager subsidies from the Federal government barely escaped the sharp knife that is constantly wielded by those who would prefer to see the country go the way of Big Oil. In fact, there has been an ongoing battle against alternative energy funded by an array of opposition groups supported by billionaire oilmen Charles and David Koch. This movement hides behind such seemingly respectable names as the “Manhattan Institute” and the “American Energy Alliance” and is geared toward promoting the agenda of Big Oil and bringing the growth of clean energy to a halt — regardless of how many lies and deceptions it requires.

Australian Canunda Wind Farm. South Australia         (Wikipedia)

Australian Canunda Wind Farm. South Australia (Wikipedia)

One such lie is that wind energy will not really help climate change. In fact, as we can read in this month’s Sierra magazine, “the Renewable Energy Laboratory says otherwise, finding that every gigawatt of wind power annually offsets 2.6 million tons of CO2. The Department of Energy estimates that if the United States could generate 20 percent of its power through wind by 2030 it would eliminate 825 million tons of green house emissions.”

In their attempt to shut down the clean energy movement, the Koch brothers have put pressure on Congress to eliminate the subsidies that were initiated by President George H.W. Bush and are essential for any industry starting up. For example, while the clean energy industry must beg for renewals of Federal subsidies on a year-to-year basis, the oil industry has enjoyed guaranteed subsidies for many years: between 2002 and 2008 these subsidies for Big Oil amounted to $70.2 billion while a mere $12.2 billion went to all renewables combined.

Fearing the discontinuance of subsidies during the recent fiscal cliff fiasco, the wind energy industry, which previously employed 75,000 people, had to lay off hundreds of employees while the near-miss spooked investors, slowed down production, and brought new wind farm projects to a grinding halt. As mentioned above, it is remarkable that the industry has survived at all. Given the serious need for alternative energies to offset our reliance on foreign oil, not to mention the need to save the planet, one can only wonder how successful this country might be if the Congress had given clean energy the sort of support the fossil fuel industries have enjoyed in the past.

Because of wind energy’s close call this past year and the slow-down that followed, 2013 will not be as remarkable a year for clean energy as was 2012. But since the tax credits will be extended beyond this year for projects started this year, 2014 promises to be a much better year. Now, if only the Congress would make a ten-year commitment, as they have done with Big Oil, things would really start to take off. We might even catch up with Germany and China.

But I do believe that the will and determination to reverse the current trend is there and that it will eventually win out. It’s just a question of time. But that time is running out and it would come so much faster if people like the Koch brothers were to wake up, realize that theirs is a finite resource and that clean energy can not only create thousands of jobs — as it has already shown — but also make the investors a ton of money. Just ask smart investors like Warren Buffett, T. Boone Pickens, and Al Gore.

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7 thoughts on “Another Close Call

  1. The Koch brothers will never be turned to be in favor of alternative energy. The oil will run out well after they are dead and gone. They are making stupendous profits on their oil and coal businesses, not only from the business and the subsidies, but also from the continuing shortcuts they take, such as ignoring EPA rules for clean air and water. The fines are cheaper than the cost of doing it right.

    The subsidies must be the first to go, and with todays bought and paid for congress, I just don’t see that happening.

    • Nor do I. And you are right about the Koch brothers. But the rest of the industry may come to realize that it is in their best financial interest to climb aboard the clean energy train — powered by solar energy, of course.

      • I hope you are right, but I can remember arguments about ending the oil depletion allowance all the way back to the ’60’s and so I’m not yet encouraged.

        Lets keep our fingers crossed.

  2. Great post Hugh. These folks keep saying this is a fledgling industry, but it is not in spite of efforts to kill it. I like to think Warren Buffett’s huge investment in wind turbine makers (GE comes to mind) show the way. The nice part is you don’t need a lot of land and can do this over water. The 75,000 jobs could grow to 500,000 if we promote it more. Well done, BTG

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