Filed under: Capitalism, Domestic Policy, Economics, Economy, Energy, Free Markets, Global Warming, Junk Science, Media Bias, Politics, Progressivism, Taxes, Technology, The United States | Tags: Abengoa Solar, Institute for Energy Research, The State of Maine, The Tesla Powerwall
Since then the Spanish company has built two American plants, one in Arizona and one in California, which supply electricity to more than 160,000 homes based on the capacity of the solar thermal plants. Remember that “capacity” is what the plants would provide on perfectly sunny days, and ignoring clouds or rain.
It appears that Abengoa got overambitious, and saddled with debt from its expansion, is scrambling to avoid what would be the biggest bankruptcy in Spanish corporate history. Abengoa’s American projects in Gila Bend, Arizona, and Barstow, California, still have around $2 billion in outstanding loans guaranteed by the United States government. The plants were partly financed by $605 million in federal grants and tax credits, besides the federal loan guarantees. The New York Times adds:
“The whole reason Abengoa Solar had to get the guarantee from the government is that no private lender thought the risk was worth it,” the Institute of Energy Research, a prominent renewables critic that has received financing from the oil industry, said in 2011.
Do note the NYT phrasing, and the “oil industry” link doesn’t seem to lead anywhere at all. Abengoa has legal problems as well from shareholders and creditors, with claims of misleading investors, and against individual executives. The company lost $1.3 billion last year and paid employees late.
They’ve also done projects in Central and South America. In 2007 they established the world’s first commercial solar thermal power plant on the outskirts of Seville. That year their stock hit a record high of €7.39 a share. In November, the share price had fallen below 40 euro cents. It’s now hovering around 71 euro cents.
Meanwhile up north in Maine: from Bloomberg:
Despite long winters, a famously foggy coastline and relatively few solar panels in operation, Maine is emerging as a pivotal U.S. state for determining how consumers will pay for power generated by the sun.
U.S. solar installations have boomed more than 10-fold in the past five years, driven in part by a policy known as net metering that requires utilities to pay their customers for extra solar energy from rooftop panels. That’s lowered consumers’ monthly bills, and also cuts into revenue for utilities that still must contend with their own fixed costs — spurring conflict between traditional power companies and solar providers.
The permanent problem with the sun is that sunlight is diffuse. The major greenhouse gas is water vapor, which we recognize as clouds. especially here on the Northwest coast where there is not a speck of blue sky today. Note the lovely photograph of the sun at the top of this post, and — the extensive clouds.
US solar installations have increased by 10-fold in the past five years driven by a federal policy called net metering that requires utilities to pay their customers for extra solar energy from rooftop panels. That has lowered customers’ monthly bills, but the utilities still have their own fixed costs, and it cuts into their revenue.
Maine has proposed replacing net metering with a system that lets utilities sign 20-year contracts with residential solar customers. And instead of paying the retail price, as called for under current policies, utilities would pay rates set by regulators.
Because this is the Twenty First Century, as we are so frequently reminded, the greens are sure there is a technological fix just around the corner, and energy storage will cease to be a problem. But every known rare earth has been tried and found wanting.
Elon Musk’s Tesla Powerwall is meant to be a daily use battery. Tesla has announced prices of $3,000 and $3,500, but that does not include the inverter, and with installation it comes to $7,340. It requires about 7.5 kilowatt hours to charge the Powerwall, providing about 5.4 kilowatt hours of power once charged. The Institute for Energy Research found that it would require a payback period of 38 years which is almost 4 times the warranty period of 10 years for the Powerwall. Even if solar power were used to charge the Powerwall the payback period would be 31 years. The obvious problem is that for home use, we require electricity most when the sun has gone down.
The government’s idea was that by stimulating greater consumer demand with subsidies, production would increase and costs would go down, but in the meantime the industry believes that solar is a complete non-starter unless utilities are forced to pay extremely unrealistic prices for solar energy produced by households with solar panels. It’s not just Maine, even in sunny Nevada solar requires huge subsidies.
Progressives are sure that the government can just order utilities to charge less for their services, much like ObamaCare just assumes that hospitals and doctors can be forced to accept less payment for their services and all will be well. Most of the problems with our frighteningly large national debt and yearly deficits are due to the fact that Progressives just don’t understand the free market at all. They only understand the pursuit of power and an ever-larger government.
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