…Want skyrocketing power prices? Just add Wind Power!…
…Now, in a cry of “enough is enough”, numerous States, including Ohio, Kansas, New Mexico and West Virginia have either pulled the plug on their “Renewable Energy Mandates” (State based subsidy schemes) or are set on the path to do so. What’s spooked them into action is the fact that:
“[E]lectricity prices in states with renewable energy mandates have risen twice as fast as in states with no renewable requirement. Electricity prices in states with mandates are 40 percent higher than in non-REM states.”
Remember, as Ross McKitrick puts it: “wind turbines don’t run on wind, they run on subsidies” (see our post here).
With States chopping the massive and endless subsidies on which the wind industry critically depends, the wind industry will finally be put to proof on its wild claims about about being “competitive” with conventional generators (see this nonsense from ruin-economy and our post here). As the Americans say to the foolish and/or brave: “well, good luck with that!”…
Citing high costs, Ohio became the first state to freeze its renewable energy mandate. Under Ohio’s mandate, utilities would have been required to provide 25 percent of the state’s electricity from qualified renewable sources by 2025. Under a law signed by Republican Gov. John Kasich in June 2014, Ohio froze its mandate at the current level of 12.5 percent, halving the mandated level.
In January, West Virginia repealed its renewable energy mandate entirely, and the New Mexico House of Representatives passed a bill freezing the state’s renewable standards in March.
Kansas has also recently held hearings on repealing its renewable energy mandate, spurred on in part by a new report from Utah State University reporting Kansas ratepayers are paying $171 million more than they would without the mandate. These additional costs have resulted in a loss of $4,367 each year in household disposable income.
What’s true for Kansas is true for other states with renewable energy mandates. States with mandates experienced 10 percent greater unemployment, due to higher energy prices resulting from the REM, than states without mandates. In addition, the U.S. Department of Energy has found electricity prices in states with renewable energy mandates have risen twice as fast as in states with no renewable requirement. Electricity prices in states with mandates are 40 percent higher than in non-REM states.
With these facts, it is little wonder that states are doing a slow walk back from their previous support of costly, environmentally harmful renewable energy mandates. It’s a classic case of legislate in haste, repent in leisure….