Question

in texas,as in other markets around the nation, legacy utilities argue that electricity from renewable resources is heavily subsidized. think for a moment about the wind generation in texas being principally situated in west texas while the consumers are east. knowing ercot as you do, would you say that the wind producers are subsidized by state policy? how

Answer 1

In 2018, three coal plants shut down pulling reserves below the desired level to meet the energy demands . Texas is facing a tight energy supply with less reliable energy sources. There are many things that led to the closures, but the most powerful certainly is the profitability of coal plants in face of billions of dollars of subsidies for renewable energy - especially wind.

Wind developers are the beneficiaries of different types of government aid . At federal level, they receive a production tax credit and on top of that ,Texas also stepped in providing billions of dollars of additional state and local subsidies. They are not the only hidden costs. Wind and solar are highly volatile sources of energy, thus more reliable sources of power ,like coal, are required to be on stand by, which has a cost . Almost all of the negotiations to bring wind farms to an area take place behind the closed door .

The current path of subsidizing renewable energy does not seem correct one . It is necessary to evaluate the renewable policies adopted by Texas Legislature.