Thursday, May 28, 2009

"Wind, solar energy folly in Spain"

So - called Clean energy bad deal for consumers


"Dana McGinnis: Spain's experience is a painful preview"


...the wind does not blow all the time...



This itsy - bitsy snippet has been adapted from real - deal area businessman Mr. Dana McGinnis' guest editorial in The San Antonio EXPRESS - NEWS. Tuesday, May 26, 2009.

"Spain offers U.S. consumers a preview of what is in store for them if plans to increase wind and solar electric generation here become reality.

"Spanish law requires distributors of electricity to buy all clean energy produced in the first 25 years of a clean energy plant's life.

"The rate the government set in 2007 was 300 Euros per megawatt - hour; then seven times the average rate for coal or gas - fired generation.

"Even at that price, however, solar energy provides less than 1 percent of total generation in Spain.

"The heavy lifting for renewable resources is left to wind, and when the wind blows, wind energy can provide as much as 40 percent of Spain's needs."


But! It is the consumers who have to pay the price.


"That might sound like music to the ears of clean energy proponents, but bells are going off in the heads of the consumers who have to pay the price.

"Costs for wind productio
n in Spain are in no case less than 2.5 times the cost for coal or gas generation because the efficiency ratio for wind is about 40 percent of installed capacity.

"Utilities must pay for all the installed wind capacity, but get only 40 percent of that in usable energy because the wind does not blow all the time.

"Real costs are likely three to five times that of alternative sources and all these costs are passed on to the ratepayers.

"The Spanish ministry estimates 42 percent of all power bills in 2009 will cover subsidized clean energy , according to Bloomberg News.

"That is an average."


When the wind blows the percentage goes up....


"When the wind blows the percentage goes up because of the obligation of the utilities to take all clean energy generated at the contracted price even if they have to cut back on far cheaper coal and gas generation to make room.

"The wind companies profit from guaranteed prices and when the wind really blows, they get rich because the consumers have no choice but to pay if they want electricity.

"There is a limit to what they can pay, however, especially when current unemployment is 17.4 percent.

"When they cannot pay, the government will pay because of the guarantees.

"But what happens when and if the government can no longer pay?"

And here Mr. McGinnis gives us his answer:

When the bough breaks, the cradle will fall

And down will come baby, cradle and all.

Rock - a - bye, baby ...

Some really good points, Señor! :)

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