I read an interesting article on the front page of the New York Times on Monday November 8th relating to the cost of renewable energy.
Basically, the writer notes that some regulators across the USA are rejecting the high cost of power generated from both wind farms and solar energy. A contract to sell power to a utility in Virginia was rejected with state regulators quoted as saying; “The ratepayers of Virginia must be protected from the costs for renewable energy that are unreasonably high”.
With the McGuinty government in the process of awarding huge long-term contracts for wind farms, Ontario taxpayers are being locked into higher than normal costs. Yes, we must make a commitment to renewables but, with the cost of natural gas extremely low and the continued development of major coal assets, will governments, during this time of economic struggle, keep providing the tax credits and subsidies necessary for renewable energy and clean power initiatives?
As noted in the article; “A weak economy and abundant supplies of energy from inexpensive fossil fuels have caused the investment in wind energy generation in the United States to fall behind that of Europe and China.”
With the results of the recent election in the USA and the anticipated deadlock in government through until at least 2012, renewable investments may take a hit. Will Canada be far behind?
TRASHED! How Political Garbage Made the United States Canada’s Largest Dump