Yankees wake up to the insane costs of the wind power fraud

Late to 2 World Wars (but very much welcomed on its arrival) the United States sometimes takes a little longer to catch on to matters of Global significance.


US Forces – a welcome addition to the War on the Nazis.

But – like a sleeping elephant – you had best not wake this mighty beast because what happens next could be ugly for the antagonist.

angry elephant

The Americans have just dawned on the fact that their power bills are skyrocketing due to the mad wind rush taking place all over the States.

Here’s USA Today’s take on the Yankee epiphany.

America should learn from Europe on wind power
USA Today
Iain Murray
13 June 2013

Germany and Spain have been hit by the downside of alternative energy.

As the Department of Energy considers a loan guarantee for the Cape Wind Project in Massachusetts, it should learn from Europe’s failed wind energy experiments – and from its own troubled experiences with renewable energy projects.

Germany and Spain are waking up to the inevitable truth about renewable energy, especially offshore wind. They are now realizing the projects cannot survive without subsidies and that they make energy much more expensive to households and businesses. In an age of austerity, they are a luxury even Germany, Europe’s economic powerhouse, cannot fully afford any more.

When Germany decided to close down its nuclear power stations after the Fukushima disaster in Japan, the original plan was to replace most of the lost generating capacity with wind power. However, wind power is expensive, and the growing size of the industry has meant that subsidies – and energy bills – have surged. The German subsidy is paid for by a surcharge on household electricity bills. The growth in wind power meant that in January the surcharge increased to over 5 cents (euro) per kilowatt hour, representing 14% of all electricity bills.

In Germany, Chancellor Angela Merkel, realizing that wind power is economically unsustainable, has proposed capping the subsidy until the end of 2014 and capping further rises to 2.5%, with the probability of further significant reform after the federal elections this year. It’s a similar story in Spain, where subsidies have been cut so much that the chairman of the country’s Association of Renewable-Energy Producers said recently: “Spain’s government is trying to smash the renewable-energy sector through legislative modifications.”

President Obama has repeatedly said we should look to Spain and Germany for the lead on renewable energy policy. He is right, but not in the way he thinks.

Furthermore, he should look to the Cape Wind project in Nantucket Sound. The project will cost $2.6 billion, and it has secured funding for $2 billion of that from a Japanese bank. But this is believed to be subject to the project gaining a loan guarantee from the U.S. Department of Energy. And there is every reason to believe that this would be as bad a bet as its loan guarantee to Solyndra.

The contracted cost of the wind farm’s energy will be 23 cents a kilowatt hour (excluding tax credits, which are unlikely to last the length of the project), which is more than 50% higher than current average electricity prices in Massachusetts. The Bay State is already the 4th most expensive state for electricity in the nation. Even if the tax credits are preserved, $940 million of the $1.6 billion contract represents costs above projections for the likely market price of conventional power. Moreover, these costs are just the initial costs, and like in Germany, they are scheduled to rise by 3.5 percent annually for 15 years.

This massive increase in energy costs is bad news for Bay State businesses and may well drive some of them out of the state entirely. That’s a disaster for jobs and for tax revenue.

The likelihood that businesses will not be willing to pay the bill means that the burden will fall increasingly on households. Yet, in all probability, this will be politically unsustainable, and the cost will therefore fall back on taxpayers across the nation, via the loan guarantee.

That’s just the economic argument. When you consider the environmental arguments, the case becomes a no-brainer. As the Alliance to Protect Nantucket sound points out, “Cape Wind threatens the marine environment and would harm the productive, traditional fisheries of Nantucket Sound.”

The Alliance also notes that, “Cape Wind would not make a significant contribution to the effort to reduce pollution emissions, and, in fact, could aggravate the problem by causing dirty power plants to run more often in order to be ready to generate power instantly when the wind stops blowing.”

For the Department of Energy to grant the loan guarantee to Cape Wind would be a triumph of blinkered ideology over real economic and environmental concerns. The president, true to his word, should learn from Germany and turn down the loan guarantee to Cape Wind.

Iain Murray is a vice president at the Competitive Enterprise Institute.
USA Today

In our next post we cover Maurice Newman – an adviser to our next Prime Minister – who this week described windfarms as involving an “obscene wealth transfer from poor to rich” and “a crime against the people”.

The Americans can only hope to find someone in their political midst that shares the same view. STT says: “good luck, Yankees”.


We want politicians with brains and guts.

About stopthesethings

We are a group of citizens concerned about the rapid spread of industrial wind power generation installations across Australia.


  1. sandcanyongal says:

    Don’t count on the U.S. waking up. Australian government has nothing on the greed of U.S. profiteers.

    Follow the money trail and what is in it for the city, township or state. Here is what I mean:
    source: http://www.co.kern.ca.us/planning/pdfs/eirs/AltaEast/Appendices/AppM_EconFiscal.pdf

    Check out page 16. The State of California makes out like a bandit with the lion’s share of the property tax and sales tax. The County gets the scraps. The land is sold cheap with inticing subsidies, tax breaks and like-new, back to original cost for purposes of depreciation on the equipment.

    AWEC has become a major source of property and sales tax revenue to Kern County. AWD will pay at least $31 million in County property taxes annually when the AWEC is completed in 2012. This is a substantial share of the County’s property tax revenue. As shown in Table 5.1 sales tax payments will total $178 million by the time the entire project is complete. The State’s share will be $155 million, and the County share will be $23 million. As shown in Table 5.2, when all three phases of AWEC are fully operational annual sales tax payments will total $2.3 million. This will include payments of about $2 million to the State and $293,000 to Kern County each year.

    The deals are so good that a subsidiary of Barclay’s Bank (same bank guilty of interest rate fixing – libor), Google and Warren Buffet’s Berkshire Hathaway. There is a massive redistribution of wealth, possible money laundering (like the case in Italy) and these giant corporations can’t miss with such sweet deals, at the expense of ecosystems and rights of land owners to fully enjoy our properties.

  2. But landowners and power companies here in the UK just love all that taxpayer money. The fact that solar/wind push up energy bills and kill off jobs in the unsubsidised sector does not matter to the UK troughers/snouts in the trough types!

  3. It is all starting to happen, as politicians start to stand up for the truth about the FRAUD of the wind industry, so look out greentards & wind weasels. You are all getting found out, & I hope you all are made to tear down all the usless turbines at your own expense, not ours as it has cost us enough.


  1. […] while back we looked at how the Yanks are slowly catching up with the scale of the Great Wind Power Fraud – well here’s Jay Lehr’s […]

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