Thursday, March 8, 2012
Wind farms in Pacific Northwest Paid to Not Produce By Dan Springer
Wind farms in the Pacific Northwest -- built with government subsidies and maintained with tax credits for every megawatt produced -- are now getting paid to shut down as the federal agency charged with managing the region's electricity grid says there's an oversupply of renewable power at certain times of the year.
The problem arose during the late spring and early summer last year. Rapid snow melt filled the Columbia River Basin. The water rushed through the 31 dams run by the Bonneville Power Administration, a federal agency based in Portland, Ore., allowing for peak hydropower generation. At the very same time, the wind howled, leading to maximum wind power production.
Demand could not keep up with supply, so BPA shut down the wind farms for nearly 200 hours over 38 days.
"It's the one system in the world where in real time, moment to moment, you have to produce as much energy as is being consumed," BPA spokesman Doug Johnson said of the renewable energy.
Now, Bonneville is offering to compensate wind companies for half their lost revenue. The bill could reach up to $50 million a year.
The extra payout means energy users will eventually have to pay more.
"We require taxpayers to subsidize the production of renewable energy, and now we want ratepayers to pay renewable energy companies when they lose money?" asked Todd Myers, director of the Center for the Environment of the Washington Policy Center and author of "Eco-Fads: How the Rise of Trendy Environmentalism is Harming the Environment."
"That's a ridiculous system that keeps piling more and more money into a system that's unsustainable," Myers said.
"It sends a very poor signal to the market about doing business in the Northwest," said Rachel Shimshak, executive director of the Renewable Northwest Project. "We want the Northwest to be a good place to do business."
Now we are subsidizing renewable energy. Sounds ridiculous to me. Didn't anyone see what was going to happen. And why isn't this excess supply sent to parts of the country that can use it. We've been talking about upgrade the power grid for years. Lets do it, instead of subsidizing an industry that doesn't need it.