Renewal of Wind Energy Subsidies Will Lead to a Big Boost in Carbon Emissions

Conservation by from Roll Call, April 3, 2014

The wind industry may be feeling butterflies as the sector’s Production Tax Credit (PTC) is up for renewal again. But Washington’s usual handout to keep the turbines spinning may be harder to win this time round because of a new twist: experts are warning a renewal will lead to increased carbon emissions.

According to said experts, PTC subsidies for wind are incentives for turbine operators to sell energy at negative prices or a loss. That’s because wind producers still receive positive margins during negative price hours due to the PTC subsidy. So while they can readily turn wind turbines on and off, they are more than happy to keep generating, even if the grid doesn’t need them.

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