- Wind producers are paid the equivalent of $35 per megawatt-hour in PTC subsidies (often as high as the wholesale price itself), so a wind producer taking the PTC can still profit even when they pay the electrical grid to take their electricity—a phenomenon known as “negative pricing”.
- By encouraging these predatory negative prices in wholesale electricity markets, the PTC wreaks havoc on baseload or “around-the-clock” generation such as nuclear and hydroelectric power.
- The impacts of market distortion and negative prices are already being felt. Dominion Resources closed its Kewaunee Nuclear Plant in Wisconsin 20 years ahead of schedule, and Entergy announced that it will close its Vermont Yankee Nuclear Plant later this year.
- Because the PTC hurts zero-emission nuclear power most severely, the subsidy is losing its environmental justification.
- Energy experts from organizations across the board recognize the destructive impacts of PTC-related market distortions—from the New York Times to non-partisan policy groups to government agencies.
The wind production tax credit enables predatory market distortions that undermine the reliability of America’s power grid and defeat the environmental justifications some have made for keeping the PTC. AWEA’s recent report relies on misleading information to obscure the worrisome long-term effects of the PTC…
To read the full analysis, click on the link below…
To set the record straight, this article addresses some of AWEA’s flawed arguments and glaring omissions. The PTC, while incredibly valuable to owners of wind power facilities, hurts U.S. taxpayers and undermines the economic efficiency and physical reliability of the U.S. power grid….