Sherri Lange, from NAPAW, calls for an Audit of the Green Energy, and Green Economies Act!

Letter to Auditor General for Ontario from North American Platform Against Windpower

To: Ms. Bonnie Lysyk (Auditor General for Ontario)       (Letter of August 11, 2014)

Dear Ms Lysyk,

Please consider this letter as an urgent formal request for a complete and impartial audit for all matters pertaining to the Green Energy and Green Economy Act, 2009, and its false assertions and negative results for Ontario: these misrepresentations include vigorous job creation, suggested cleaner air space, the ability to create energy facilities, wind and solar, in particular, in a cost savings manner, or competitive manner.

The Green Energy and Green Economy Act has suggested with not a little hyperbole, that it will “spark” growth in “renewables sources in Ontario, while creating savings, and producing 50,000 jobs, direct and indirect,” and “make a positive contribution towards climate change objectives,” whereas in fact the GEA threatens to eviscerate the economy of Ontario and Canada as a whole. The factual results of the GEA are of economic chaos, massive job losses, environmental degradation of the highest order, a decay of our treasured environmental protections in law, and yet uncounted human health and productivity costs.

Under the guise of positive net growth, and climate change objectives, this Act has been used to gouge and tyrannize the province, materially and economically.

We believe that the mandate of the Auditor General to provide access to “value for money” data, within an audit, will provide even more information with respect to the waste and perhaps fraud at the highest levels; consumers are indeed not being provided with fair business practices, but are continually subjected to even more egregious attacks in their daily “energy expensive” lives due to a battered and debt ridden economy. Jobs continue to leave Ontario. Some are relocating to Buffalo, to save, in one instance, $4 million per year in energy savings, or to Saskatchewan, for example. The bleed of jobs cannot continue, and we believe that an assertive and clear look at the funding and economic threat of the Green Energy Act will bear striking similarities to the international failure of wind power and Green Energy policies. Even information provided years ago by your office and the Fraser Institute did nothing to change the course.

We contend that none of the GEA assertions and projections have proven valid, and have in fact been a major contributor, likely THE major contributor, to the near demise of manufacturing in Ontario, to energy poverty for many Ontarians whose hydro bills have risen 30-40% with promises of more hikes, to the loss of jobs to the USA and western Canada, to the ill health of hundreds of Ontarians, some of whom have been forced to abandon homes, or been bought out by developers, or who reside in parking lots at Walmart, or at cottages, or with relatives. The energy chaos of Ontario now handily competes with that of Spain, Germany, or the UK.

All of this should be and should have been preventable, since the facts are well known. Indeed, the facts of the Green Energy failures of Europe should have been a lesson learned before this Ontario failure of a massive scale. (Ontario now has the unenviable position of having the highest cost of power in North America. The significance of this is not lost on Moody’s Credit Ratings system, with the threat of downgrades to Ontario.) The lessons of Europe have been put before the Legislature, all parties, on many occasions, without benefit or improvement.

The Fraser report of 2013 has already indicated that the assertions of the GEA are egregiously false.

“Already, the GEA has caused major price increases for large energy consumers, and we’re anticipating additional hikes of 40 to 50 per cent over the next few years,” said Ross McKitrick, Fraser Institute senior fellow and author of Environmental and Economic Consequences of Ontario’s Green Energy Act.”

“The Ontario government defends the GEA by referring to a confidential 2005 cost-benefit analysis on reducing air pollution from power plants. That report did not recommend pursuing wind or solar power; instead it looked at conventional pollution control methods which would have yielded the same environmental benefits as the GEA, but at a tenth of the current cost. If the province sticks to its targets for expanding renewables, the GEA will end up being 70 times costlier than the alternative, with no greater benefits.” (News release, April 2013)

The study goes on to indicate that returns to investment in manufacturing are “likely to decline by 29 per cent, mining by 13 per cent, and forestry by less than one per cent.”

Professor McKitrick explains in his report that wind is especially wasteful, as surplus generation occurs generally when demand is low, and the resulting “dumping” also results in net losses to Ontario.

“The Auditor General of Ontario estimates that the province has already lost close to $2 billion on surplus wind exports, and figures from the electricity grid operator show the ongoing losses are $200 million annually”, says the report.

Terrance Corcoran in the Financial Post quotes from the Auditor’s report that the cost of power is estimated to rise again another 46% in the next four years. In his analysis of the Auditor General’s 2011 report on electricity, Mr. Corcoran writes of “wilful negligence” and a “high level of fiscal negligence and abuse of process and disdain for taxpayers and electricity consumers.”

A prime example of the negative impact on the Ontario jobs situation is reflected in Magna’s (the largest automotive parts manufacturer in Canada) announcement that due to the high cost of electricity in Ontario, it will not make any further investments. (Specifically, for Magna between 2013 and 2014, normal business activities resulted in an increased cost of electricity of 30 million dollars.)

The expressed primary purpose of the 2011 audit was to ensure that the OEB had sufficient and adequate systems in place to protect consumers, ratepayers. As noted also in the report, consumers are protected under the Energy Consumer Protection Act, 2010, and that under this legislation consumers shall be provided with the information they require about contracts, prices, and that they will be protected by fair business practices. This fairness has not been brought to fruition.

And the serial negligence continuing until this day, despite hearty and clear directives from the Fraser Institute and your office, has resulted merely in the advance of even more industrial wind in Ontario under Premier Wynne. Consumers are indeed not being increasingly protected, and continue to be recklessly thrown under the fiscal bus.

What we find most egregious is that the people of Ontario have warned the Premier(s) McGuinty and Wynne, and made reports to the Finance Committee, as well as reporting to these offices the results of energy chaos in Germany, Spain, the UK as well as other European states previously under the spell of “renewables.” (Please note the letter to the Editor, Financial Post, March 3, 2011: “No such thing as renewable energy.”) These abject economic failures in Europe should have provided clear warning of the folly of subsidizing inefficient non base load sources of power, particularly wind turbines.

The government and lobbying association CanWEA’s (Canadian Wind Energy Association) assertion that the wind turbine industry operates safely and without damage to human health is false and must also be examined, since the reports of ill health given to the MOE (Environment) now number in the thousands. The MOE (Ministry of the Environment) has recognized the problem, and admitted in an email obtained from an FOI that they “did not know what to do.” The costs of wind power to our medical system and human productivity have not yet been accounted for.

We remind you that with about 240,000 wind turbines worldwide, we yet only receive one half of one percent, NET ZERO, of our power needs from this source. This industry is a failure, plain and simple; does the build out then have something to do with massive subsidies deep in the pockets of developers? Who is receiving these massive double or quadruple profits? We would like to see a chart of the major beneficiaries of the FIT program in Ontario. In Spain, the profits have been so tidy, that the Government recently asked for some retroactive repayments,understandably chilling the wind developers’ aspirations. (The lineup of crimes against consumers continues in Ontario: with 86% of Ontario’s wind power being produced on days when we are already in a surplus export mode. Another net loss for consumers is obvious.)

Please also include an environmental impacts costs study in your findings. The extreme damage to water tables, prime farm land, general ecological tragedies and killing of wildlife, has an external cost factor as well, to be borne, sadly, by our future generations.

Mr. Geoffrey Cox, a UK Conservative MP, expressed his disgust for the “gigantic machines” which are terrorizing his country:

“The reality is there is a Klondike-type gold-rush going on in rural areas where developers are anxious to get their applications through to pick up the vast profits that can be made.

“This is having a disruptive, devastating and distressing effect on dozens of small rural communities that are being torn apart by these huge industrial machines that are just yards away from their home.

“The number of applications seems to be going up rather than receding. What is going on is a stealthy, silent revolution of the most beautiful landscapes in Great Britain.

“If we carry on we will have ruined this most extraordinary inheritance.”We look forward to your prompt reply and a rapid advancement into an impartial audit of these matters in their complete impacts on Ontario, on the economy, and on fairness, or in this case, unfairness, to each consumer and job seeker. It will be extremely useful to untangle some of the Byzantine financial and undemocratic policy arrangements that have led to this “made in Ontario” crisis. We must immediately stop this re-creation of the catastrophic results of Green Energy failures in Europe.

Please conduct an impartial and in depth assessment of all financial matters pertaining to the GEA and relay these findings to the people of Ontario at your earliest convenience. We anticipate that your report might reflect also on the medical costs to Ontario families, the loss of economic vibrancy and stability of rural Ontario which continues to bear the assault fully on its shoulders, the loss of tourism, and the loss of property values, which also contribute to economic stagnancy. Please also conduct a study on a trace of the profits to developers, kWh by kWh, if possible. We have a right to know where our hydro dollars are going.

The high octane waste of the “Green Energy and Green Economy Act”, which has been repeatedly explained to legislators, must cease immediately. It must also be retroactively remediated. Your office has the ability to further outline to the Government not only how it may alter course, but how it must immediately repair.

(We will be writing under separate cover to Commissioner Hawkes, as we fully believe the waste and apparent fraud of the GEA far overpowers the ORNGE, E-Health, and Gas Plant scandals.)

Thanking you in advance,

Sherri Lange

CEO NA-PAW (North American Platform Against Wind Power); Founding Director Toronto Wind Action; Executive Director Canada, Great Lakes Wind Truth; VP Canada, Save the Eagles International (www.na-paw.org)

Appendix

What we know

· Industrial wind turbines are inefficient and pitiably useless

· Industrial wind installations, factories, create energy sprawl and high levels of environmental pollution and toxic waste

· Industrial wind does not work when we need it to and over performs at times to the extent that developers are sometimes paid to NOT produce

· Huge subsidies support the industry, without which, the industry does not survive

· The GEA suppresses all democratic opposition to wind and solar power, and the cards are stacked in favor of preferred accelerated promotion of wind turbines at the expense of Municipal and community cohesion and preferences

· Massive amounts of base load back up power are always required; there is zero reduction in GHG’s

· The industry (lobby)gets to sit at the table with policy makers and lay the table for the feast

· There has been no reasonable or realistic or honest explanation for the massive outlay of wind turbines in Ontario

· Energy poverty is abundant now in Ontario, along with massive job losses and gutting of the public purse

· Lessons from Europe are not being acknowledged

IS THIS CRIMINAL NEGLIGENCE?

 

– See more at: http://www.masterresource.org/2014/08/letter-to-auditor-general-for-ontario-from-north-american-platform-against-windpower/#more-31441

Will the Liberal gov’t in Ontario, smarten up, and do the right thing? Let’s hope so!

Prospects of negative governmental action in Ontario’s energy sector

August 2014
 

By James J. Shanks

When investments are made in the private sector sophisticated financial models are developed, complete with multiple inputs, all designed to predict a range of best and worst case scenarios. If a significant model input strays beyond its originally anticipated value range for example, if customer demand for a business’s products collapses then the financial model for the business may fail. If so, stakeholders in the business will likely face a restructuring of their investments. 

The chances of a restructuring are far less likely when government is the main customer of the business, not only because governments are presumed to have deep pockets, but also because, in those businesses where government acts as an intermediary between the business and the ultimate consumers of the business’s products, the government’s intermediation tends to insulate the business from model failure and its usual consequences. Nevertheless, if model failure is severe and persistent enough, history in Canada suggests that governments may be tempted to impose a restructuring even on these sorts of businesses. 

In the years leading up to Ontario’s Feed-in-Tariff (FIT) program, it was generally accepted that Ontario was approaching a near-term shortage of electricity as surging demand threatened massive brownouts.  Government financial models, no doubt, assumed that the cost of developing renewable energy infrastructure involving long-term power purchases at prices significantly above market could be recouped by steadily increasing electricity rates over time, all without unduly reducing customer demand.1 However, subsequent experience seems to suggest that Ontario’s electricity demand may have been more elastic than anticipated, especially as many urban and rural electricity consumers have reacted to increasing prices by switching some of their electricity needs to lower-priced natural gas and propane. Moreover, as price increases in the Province have outpaced those in neighbouring jurisdictions (leaving Ontario’s electricity prices 30-60% higher than in those jurisdictions), some large commercial users have reacted by moving their operations out of Ontario, further depressing overall demand.2  In fact, far from remaining steady, electricity demand in the Province is now projected to decline until at least 2021.3

Even as electricity demand has declined, Ontario’s generating capacity has increased.  Overall generating capacity in Ontario has increased by 13% since 2003, while demand has decreased by 10% since 2005.4 The end result has been a large and continuing surplus of generating capacity, with Ontario’s generating capacity expected to exceed forecast (normal weather peak) demand this summer by 25-50%.5  Partly as a consequence, electricity spot prices in the Province have plummeted, sometimes falling to $0.025/kWh.6  Higher-priced, surplus Ontario electricity is sometimes resold to neighbouring jurisdictions at a substantial discount7 and the Global Adjustment amount charged to Ontario consumers has now risen to record levels.8

In summation, some of the model inputs in the Province’s original financial models may already have strayed beyond their initially anticipated value ranges, suggesting at least the possibility that model failure has occurred in the sector or that it may be imminent.  If so, then recent entrants into Ontario’s energy sector, otherwise dependent on the continuance of long-term government purchases, are quite right to be concerned about the possibility of a government-imposed restructuring in their sector.

Unlike private sector restructurings which typically involve a court process, government-imposed restructurings generally take the form of confiscatory legislation or some other form of negative governmental action.  It should come as no surprise that governments in Canada have from time to time engaged in various sorts of negative governmental action, invariably with the intent of modifying (or even abrogating altogether) undesirable government obligations.  Such action has even occurred previously in Ontario’s utility sector.9 For example, in the 1930’s, successive Ontario governments enacted several pieces of legislation abrogating various contractual commitments to private sector power producers, all with the intent of assisting the then-fledgling, and government-owned Ontario Hydro to become the dominant power producer and distributor in the Province.  Indeed, overall, scholarly research suggests that negative governmental action usually occurs (if it occurs at all): (a) when technological change in a given industry sector is occurring rapidly, (b) when pricing, demand or other important financial variables cannot be perfectly forecast, and (c) when governments have entered into long-term contracts that cannot easily be altered.10 In other words, the restructuring risk increases on model failure occurring within this context.  

Negative governmental action can take many forms, including specifically, the passage of legislation modifying government payables, authorizing or curing contract breaches, limiting court access, amending or cancelling contract commitments, and even expropriating completed projects. A recent, well publicized, example of negative governmental action in Canada occurred in the early 1990s when the federal government summarily cancelled several long-term contracts with private sector participants for the redevelopment of Toronto’s Pearson Airport.11 Bill C-22, passed by the House of Commons provided that: (a) all contracts relating to the redevelopment were declared not to have come into existence or to have had any legal effect, (b) all obligations, rights and interests arising out of the contracts were declared not to have come into existence, (c) no action or proceeding, including for damages for breach of contract, could be brought against the government, and (d) every action against the federal government was summarily dismissed.  Bill C-22 also authorized the relevant federal Minister, for a period of 30 days, to enter into agreements with aggrieved stakeholders to pay compensation in such amounts as the Minister considered appropriate.  Notably, compensation for lost profits was expressly prohibited under the legislation. 

Using Bill C-22 as an example, it may appear at first blush that governments in Canada hold all the cards when it comes to negative governmental action. However, stakeholders should note that there are various countervailing influences that will moderate the actual exercise of such extraordinary power. For example, government will be mindful of reputational concerns.12 Specifically, international credit rating agencies may react to negative governmental action by downgrading the subject government’s public debt due to increased “country risk”, thereby increasing future borrowing costs for the subject government. Foreign governments may impose “tit-for-tat” sanctions on projects in their jurisdictions that are intended to hurt nationals of the expropriating state. Judgments rendered by sympathetic foreign courts may be executable against the subject government’s assets located in foreign jurisdictions. And finally, equity investors in non-related sectors may avoid investment in the jurisdiction altogether for fear of falling victim to similar governmental action.

Aside from reputational concerns, some jurisdictions offer constitutional safeguards against negative governmental action without due process. The Fifth and Fourteenth Amendments to the US Constitution are good examples.  Unfortunately, no such constitutional protection currently exists in Canada.13 Specifically, Canada’s Charter of Rights and Freedoms contains no express provision for the protection of property, economic, or even contract rights.14 And based on a string of Charter cases decided by the Supreme Court of Canada, it is unlikely that any general protection of this nature will be implied any time soon.15 Instead, stakeholders in Canada will have to derive comfort from the fact that Canadian courts will generally construe confiscatory legislation very strictly against the subject government, straining if at all possible to find that the legislation does not exclude the payment of appropriate levels of compensation or review by the judiciary. Nevertheless, if the legislation is sufficiently precise, even a strict constructionist approach will be of little use to an aggrieved stakeholder.

In such circumstances, Canada’s free trade agreements may assist, but only if the stakeholder is a national of a treaty-protected country. As is well known, Canada is a signatory to a number of free-trade and foreign investment protection agreements, some of which prohibit confiscatory action without payment of appropriate compensation.  For example, under Article 1110 of the North American Free Trade Agreement (NAFTA), no federal or provincial government is permitted to “nationalize or expropriate an investment of a [US or Mexican] investor…or take a measure tantamount to nationalization or expropriation”, unless such action is: (a) for a public purpose, (b) effected on a non-discriminatory basis, (c) effected in accordance with due process, and (d) carried out upon payment of compensation equivalent to the fair market value of the expropriated investment.  

Particularly instructive here is the case of Metalclad Corporation v. Mexico16, a NAFTA case brought by an American company against the state of Mexico in 2000.  In that case, an arbitral tribunal ruled that, as a result of numerous laws and other negative governmental actions passed and undertaken by Mexican state and municipal authorities, Mexico had effectively expropriated Metalclad’s newly-constructed waste facility in Guadalcaza. The tribunal awarded Metalclad US$16,685,000 in damages representing Metalclad’s sunk costs of the investment.17 While damages awarded against Mexico did not include an amount on account of discounted lost profits, such damages are thought to be sustainable under NAFTA in certain circumstances.

Equally instructive is a 2012 NAFTA case brought against Canada by the Abitibi-Bowater group and involving certain confiscatory legislation passed by the Province of Newfoundland. In this case, the provincial legislation provided for: (a) the expropriation of significant Abitibi-Bowater properties used for hydroelectric generation and transmission, (b) the cancellation of various hydroelectric contracts between the Abitibi-Bowater group and the Province, and (c) the termination of certain timber and water rights. While the legislation provided for compensation for the expropriated properties, no compensation was to be forthcoming for the terminated timber and water rights. The Abitibi-Bowater group brought a NAFTA claim asserting that the Newfoundland legislation constituted an expropriation of its assets without appropriate compensation contrary to NAFTA Article 1110. Faced with the prospect of an uphill fight, the Canadian government opted to settle the claim for $140 million.  

Besides NAFTA, and as indicated above, several bilateral trade arrangements exist which contain similar foreign investor protection.18 Importantly, the proposed multilateral Trans-Pacific Partnership currently being negotiated with several Asia-Pacific countries and the proposed Canada-European Union Comprehensive Economic and Trade Agreement (not yet in force) will also contain similar investor protection. Once implemented, these new trade arrangements will significantly expand the list of treaty-protected countries and the range of foreign stakeholders that will be able to benefit from investor protection.  Notably however Canada’s trade agreements cannot be used by Canadian nationals to protect themselves against negative governmental action occurring within Canada in relation to their domestic investments.   

With the recent re-election of Ontario’s Liberal government, stakeholders in Ontario’s energy sector are, no doubt, breathing a little easier, as putative threats to tear up the Province’s FIT contracts are now much more clearly off the table.19 Most assuredly, the restructuring risk has subsided.  Still, the issues here are as much financial as they are political, and history in Canada suggests that negative governmental action can never truly be ruled out.  If financial model failure occurs and is considered severe and persistent enough, then negative governmental action will remain a distinct (even if remote) possibility. 


1 The comprehensiveness of the Government’s original financial models has been questioned by Ontario Auditor General in the Annual Report of the Office of the Auditor-General of Ontario.

2 Remarks of Greg Abel, Chairman, President and CEO of Spectra Energy, to Economic Club of Canada, June 24, 2014.  See also “Environmental and Economic Consequences of Ontario’s Green Energy Act”, R. R. McKitrick, Report prepared for Fraser Institute, 2013, and also “High Ontario Electricity Prices Hamper Ring of Fire Processing and Other Industry”, L. Di Matteo, February 6, 2011.

3 Ontario’s Electricity Surplus: An Opportunity to Reduce Costs”(the “Ontario Surplus”), a publication of the Ontario Clean Air Alliance Research Inc., July 2012.

4 See Ontario Surplus, supra.  See also “Eighteen Month Outlook: From March 2014 to August 2015” (the “18 Month Outlook”), a publication of the IESO, p. 4.

5 Based on 18 Month Outlook, Tables 3.1, 4.3-4.5.
 
6 See Ontario Surplus, p.3.
 
7 “Ontario’s Power Trip: Power Dumping”, Gallant, P., Financial Post, July 20, 2011, and “Ontario’s Power Trip: Province lost $1.2-billion this year exporting power”, Gallant, P., Financial Post, December 2, 2013.
 
8 “Ontario power fee sets new record: The global adjustment — a fee added to the market price of electricity in Ontario — has reached a record high”, Walton, T., The Toronto Star, September 3, 2013.
 
9 “Regulatory Failure and Renewal: The Evolution of the Natural Monopoly Contract”,  J. Baldwin, Ottawa: Economic Council of Canada 1989.
 
10 See Baldwin, Chaps. 3, 10 and 12, for example.  See also “Public Accountability in the Age of Contracting Out”, E. Atwood and M.J. Trebilcock, (1996) 27 Can. Bus. L.J., v. 27, n. 1, p. 1, at p. 38.
 
11 A more recent instance occurred when in 2008 the Government of Newfoundland expropriated various power generating and transmission assets of the Abitibi-Bowater group (discussed further below in this article) pursuant to the Abitibi-Consolidated Rights And Assets Act (Newfoundland).
 
12 See for example “A Constant Recontracting Model of Sovereign Debt”,  J. Bulow & K. Rogoff (1989) Journal of Political Economy, 155.
 
13 For a contrary view regarding the government’s right to implement negative governmental action, see “Is the Pearson Airport Legislation Unconstitutional?: The Rule of Law as a Limit on Contract Repudiation by Government”, P. Monahan, (1996) Osgoode H.L.J., v. 33, n. 3, p. 411, where the author argues that where legislation like Bill C-22 purports to deny access to the courts, the legislation breaches the rule of law implicitly enshrined in the Charter of Rights and Freedoms, and therefore is unconstitutional.
 
14 While the Canadian Bill of Rights provides an explicit right to the “enjoyment of property” and the right not to be deprived thereof without due process, the Canadian Bill of Rights only applies to federal laws, may not entitle the aggrieved party to compensation if the confiscatory legislation provides otherwise, and creates rights that do not have the same status as Charter rights. 
 
15 Siemens v. Manitoba (Attorney General), 2003 SCC 3; The Attorney General of Quebecv. Irwin Toy Limited, [1989] 1 S.C.R. 927; Whitbread v. Walley [1991] 2 W.W.R. 195 (SCC);Olympia Interiors Ltd. v. R. (1999), 167 F.T.R. 165 (Fed. T.D.), affirmed (1999), 1999 CarswellNat 1978 (Fed. C.A.), leave to appeal refused (2000), 252 N.R. 393 (S.C.C.);Energy Probe et al. v. The Attorney General Of Canada et al., (1994) 17 O.R. (3d) 717 (Ont. C.J.); and Shaw v. Stein, 2004 SKQB 194. 
 
16 See Metalclad Corporation v. Mexico, ICSID Case No. ARB(AF)/97/1 (NAFTA), Award. For an unsuccessful appeal of the NAFTA award to British Columbia Supreme Court, seeUnited Mexican States v. Metalclad Corp., 2001 BCSC 664.
 
17 Damages were based on the claimant’s actual investment in the property because the facility had not been operational long enough, and thus had not established a sufficient record of profitability, such that damages for lost profits could be proven.  The tribunal suggested that a “fair market value” award of damages for a going concern with a history of profitable operations would usually be based on an estimate of future profits, subject to a discounted cash flow analysis.  See  also Biloune, et al. v. Ghana Investment Centre, et al., 95 I.L.R.183, 207-10 (1993).
 
18 See, for example, Article 9.1 of the Canada-Panama Free Trade Agreement, Article G-10 of the Canada-Chile Free Trade Agreement, and Article 8.11 of the Canada-Korea Free Trade Agreement (not yet in force), all of which provide compensation for expropriatory measures taken by the federal or any provincial government.
 
19 See, for example, the Alliance for Renewable Energy’s view of the threat in: “June 12 Provincial Election will determine the Future of Ontario FIT Programs”,  June 3, 2014.

For All the People Who Have Asked or Wondered about the “Copycat” website….

There are 2 people that resigned from my Mothers Against Wind Turbines group, who are trying to run their own group, and are using my name. I am delighted that they are starting their own group, but disgusted, that they are trying to steal my name.  My trademarked name.  It is the name I came up with, while looking for a way to protect my son, as well as help other families protect their children.  My story is on my blog, but surprisingly enough, they have put it on their mothersagainstturbines.com website, and refuse to remove it, even though I have asked them repeatedly, to do so.  I want everyone to know, I do NOT endorse what these people are doing, I have no involvement with these people, and I am working toward resolving this issue.

I want to thank everyone who has been patient while this mess gets straightened out.          Shellie Correia

The Original Mother Against Wind Turbines

 

  • ® r for a registered trademark. The owner of a registered trademark may commence legal proceedings for trademark infringement to prevent unauthorized use of that trademark. However, registration is not required. The owner of a common law trademark may also file suit, but an unregistered mark may be protectable only within the geographical area within which it has been used or in geographical areas into which it may be reasonably expected to expand.

 

 

*****IMPORTANT*****

It has been brought to my attention, that the people using my name, Mothers Against Wind Turbines, with inc stuck at the end of it, are soliciting the people of West Lincoln, for money.  These are the same individuals that resigned, and then snuck around, behind my back, and took all of the money out of my MAWT account.  Thousands of dollars that had been earned by myself, and some supporters from the community.  They had NO right to do this.  I would highly recommend that any donations toward the wind fight go directly to:   http://swearontario.wix.com/swearontario     Thank you,   Shellie Correia

The Faux-Green Scam, is Completely Unsustainable!

The Three Faces of Sustainability

June 23, 2014
 

Pressure from the United Nations, U.S. Environmental Protection Agency, and environmental activists to promote “sustainable” development has led to “economically harmful and environmentally counterproductive” policies that have resulted in completely unsustainable practices, writes environmental expert Paul Driessen in a new report for The Heartland Institute.

The failure to define exactly what true sustainability is “gives unelected regulators increasing control over energy use, economic growth, and all other aspects of life,” writes Driessen. Both wealthy and economically depressed regions of the world are pressured to avoid developing coal, oil, natural gas, hydroelectric power, and nuclear power despite evidence showing them to be “the only abundant, reliable, and affordable sources of energy.” Such anti-energy policies “perpetuate poverty for developing countries and reduce living standards in wealthier countries.”

In “The Three Faces of Sustainability,” Driessen calls for “true sustainable development” that “improves living standards instead of paying mere lip service to them.” This requires “allowing people the freedom to develop and use new technologies and best practices that conserve resources, reduce waste and pollution, and give people incentives to choose the most efficient energy and mineral sources and to abandon them once better ones are found.”

He concludes,

Wise resource use is consistent with sustainable development because the creative human mind – what economist Julian Simon called the ultimate resource – will continue to devise new technologies and new ways of finding and extracting important natural resources. We will never lack the resources needed to continue improving lives, unless misguided activists, politicians, and regulators succeed in placing those resources off-limits. Our most valuable natural resources are not endangered or approaching exhaustion under any reasonable analysis. … In sharp contrast, political sustainability impedes efforts to improve lives, protect the planet, and prolong resource availability for current and future generations.

Driessen is senior policy analyst for the Committee For a Constructive Tomorrow and a policy advisor to The Heartland Institute. His articles have appeared in The Wall Street Journal, Washington Times, Investor’s Business Daily, and numerous other newspapers and magazines, and on websites around the world.

Corruption In The Wind Industry, Drags Weak People In!

Texas is not what you think it is–because of politics on energy

I have a person clown senator–Troy Fraser, who was, before he became a well dressed Texas Senator who walks around the State House like Khan, a guy who made pallets–wooden flats for heavy items.

I first met Fraser when he was handing out cards in front of the Walmart, kind of a dumpy guy on the rise. Now he looks like a million bucks, striding around the capitol like a nobleman.

He is a political oligarch and he paid the price–he wrote bill more than 10 years ago that guaranteed we would be dealing with wind turbines in Texas forever, Texas of the Oil industry–but Fraser is owned by the wind turbine hustlers. Beats hustling pallets for sure.

One of Fraser’s projects in the past was creating the nonsense of a set asides. Fraser wrote up–to cater to his wind campaign supporters–a bill requiring that Texas Electricity/Energy Companies set aside 15% of their portfolios of energy production for alternative sources.

Troy Fraser is a well dressed male whore. Simple as that.

And Texas has an immense investment in a stupid idea–wind.

http://environmentblog.ncpa.org/texas-wind-energys-expensive-wait-and-see-experiment/

Many Parts of the World, Are Returning to Sanity! No More Climate Alarmism!

Germany’s Green Energy Policy

Beginning To Strangle Economy 

End Of The Wirtschaftswunder?

Germany’s Sudden Slowdown

Chancellor Angela Merkel’s abrupt exit from nuclear energy after the Fukushima disaster in Japan and aggressive push into renewables has unnerved German industry. A recent overhaul of the country’s complex renewable energy law has done little to alleviate uncertainty over future policy or assuage fears about German energy competitiveness. “Energy intensive industries in particular have lost confidence in the future of Germany as a business location,” said Thomas Mayer, a former chief economist at Deutsche Bank. —Reuters, 16 August 2014

The Green Party has criticised Angela Merkel, the German Chancellor, for cancelling her attendance at the UN Climate Summit on 23 September in New York and accused her of giving preference to lobby interests. “Instead of fighting for global climate protection on the international stage, she rather goes to speak to the lobby group of German industry which is not known to be a haven of climate change activism,” said the party’s parliamentary deputy Oliver Krischer.–Die Welt, 15 August 2014

Indian Prime Minister Narendra Modi, leader of the world’s third-largest greenhouse gas-emitting nation, won’t join his U.S. and Chinese counterparts at a United Nations climate summit next month in New York. Modi will skip the Sept. 23 event, according to the Economic Times, thwarting a potential meeting between the heads of states for the three largest greenhouse gas emitters — arguably the nations that will drive international negotiations next year in Paris. Modi’s absence is a bit of a blow to the summit, as India hasn’t made the type of ambitious gestures that China and the U.S. have floated. –Zack Colman, Washington Examiner, 15 August 2014

According to a group of Norwegian researchers, the prospects for achieving an effective international climate treaty are poor. The measures that are politically feasible are ineffective and the measures that would be effective are politically infeasible. The world is actually further away from achieving an effective international climate agreement today than it was 15 years ago, when the Kyoto Protocol was adopted. Little basis for optimism exists. —The Research Council of Norway, 14 August 2014

The movement to push through a binding international climate change treaty has lost most of its momentum in recent years, having failed at conference after  conference, summit after summit, to reach any sort of consensus about how the world ought to respond to the pervasive threats brought on by our warming world. The reason all this chatter is proving futile is that the developing and the developed world are engaged in a showdown. Attempting to reach a global agreement is the same as banging one’s head against the wall. The Global Climate Treaty movement wastes time and jet fuel, but sadly there’s no end to the charade in sight. –Walter Russell Mead,The American Interest, 13 August 2014

The chapter analysing the history of the industry in Spain is laugh-a-minute stuff, a tale of incompetent politicians and civil servants bumbling from one disaster to another and fraudulent investors cheating their way to a slice of public funds. We hear about the diesel generators generating “solar power” at night and that at one point the authorities estimated that half of new solar PV connections to the grid were fraudulent. You can see why the revolution led to disaster. I leave you with this apposite quote from the text: “Modern renewable energies, supposedly born to support a sustainable world, became one jewel of the most unsustainable of human activities, financial greed.” –Andrew Montford, Bishop Hill, 17 August 2014

In the run up to the general election, the mood music among political leaders seems to have become somewhat more cautious on shale development. At this stage in the political cycle, local opposition is bound to be at the forefront of politicians’ minds. But the public understands that shale development is a matter of national interest – recent polling suggests that 57 per cent are in support, while just 16 per cent oppose it. Shale could be a boon to our energy-intensive industries, creating jobs in the north of England, and increasing domestic gas production to keep wholesale prices down.  Policymakers should keep these huge potential benefits in mind in the run-up to the general election. –Benny Peiser & Daniel Mahoney, City A.M. 15 August 2014 

People should Learn to “Adapt”, Rather than Playing the “Blame Game”!

Spot the Portion on the Map, caused by ‘climate change’

From “The Hill”, even California Democrats aren’t buying the climate BS Obama and Holdren are selling on drought: (h/t to WUWT reader “Green Sand”)

Voters don’t hear the words “climate change” when Democrats in competitive races in California explain what’s causing the worst drought in the state’s history.

President Obama has repeatedly blamed global warming for episodes of severe weather, including wildfires and droughts in the Golden State, but Democrats seeking to unseat Republicans in the hard-hit Central Valley region are balking at that argument.

The drought is an issue in three of the five closest House races in California, but Democrats are opting against drawing a direct link between the drought and climate change.

“The way folks talk about the drought out here is: ‘We have a problem, let’s fix the problem,’” said Amanda Renteria, a Democrat challenging Rep. David Valadao (R).

“Climate change doesn’t really belong in the question, or answer,” said Renteria, one of her party’s best hopes of gaining a House seat this fall.

California’s drought is in its third year, with no signs of ending. It’s expected to cost the state $2.2 billion this year.

Renteria’s race against Valadao in California’s 21st District is smack dab in the middle of the agriculture-heavy Central Valley, where the drought is the single biggest issue for voters.

Renteria isn’t a climate skeptic and thinks there is something “going on” with climate change.
 
But her campaign isn’t focused on pinning the drought to the effects of global warming.

It’s focused on how federal and state officials were unprepared to deal with the drought, and how Central Valley lawmakers should have pushed Congress to take steps to build water storage infrastructure to help farmers.

“The fact that we need an answer, and needed an answer for years — this has been coming, we knew it was coming — adds to questions about who our leaders are, and what is going on in Congress,” she said.
 
Other Democrats in California districts impacted by the drought are tacking a similar tack.

OK, spot the portion caused by climate change:

California_drought_timeline

The paper:

North American drought: Reconstructions, causes, and consequences, Cook et al. 2007

PDF here: NADrought

Figure 10 is the source of the above graph:

Cook_etal_2007_fig10

Fig. 10. Long-term aridity changes in the West (A) as measured by the percent area affected by drought (PDSIb−1) each year (B) (redrawn from Cook et al., 2004). The four most significant ( pb0.05) dry and wet epochs since AD 800 are indicated by arrows. The 20th century, up through 2003, is highlighted by the yellow box. The average drought area during that time, and that for the AD 900–1300 interval, are indicated by the thick blue and red lines, respectively. The difference between these two means is highly significant ( pb0.001).

 

Aussie Politicians, We Can ALL Be Proud Of!!!

Tony Abbott, Joe Hockey & Mathias Cormann: Natural Born RET Killers

abbott, hockey, cormann

Tony Abbott has made no secret of his eagerness to do away with the most colossal corporate welfare scheme in the history of the Commonwealth (see our posts here and here and here).

And his Treasurer, Joe Hockey has pinned his colours to the mast as someone who can’t stand wind farms – and whose political mission is to bring the “age of entitlement” to an end, which includes the stream of subsidies directed at wind power outfits (see our posts here and here).

The Finance Minister, Mathias Cormann made his disdain for the great wind power fraud known by joining Hockey to prevent the Clean Energy Finance Corporation signing up anymore unsecured loans to wind power outfits (see our post here).

So it comes as no surprise that Abbott, Hockey and Cormann would team up as Natural Born RET Killers. Here’s the Australian Financial Review heralding the beginning of the end for the mandatory RET and, with it, the end of the great Australian wind power fraud.

Abbott’s plan to axe RET
Australian Financial Review
Phillip Coorey
18 August 2014

The federal government is moving towards abolishing the Renewable Energy Target rather than scaling it back in a move that will cost almost $11 billion in proposed investment and which is at odds with the views of its own Environment Minister.

The Australian Financial Review understands Prime Minister Tony Abbott has asked businessman Dick Warburton, whom he handpicked after the election to review the RET, to do more work on the option of terminating the target altogether. This was after Mr Warburton’s review leant towards scaling back the RET.

Sources said Environment Minister Greg Hunt, who advocated scaling back the RET as a compromise, has been sidelined from the process and is understood to be unhappy. They said Mr Abbott, Treasurer Joe Hockey and Finance Minister Mathias Cormann are pushing the issue now.

A government source said when the government announced its decision, possibly before the end of this month, it was now “more likely” the RET will be abolished under a so-called “closed to new entrants scenario” in which existing contracts only would be honoured.

Given Clive Palmer has vowed to block any change to the RET until after the 2016 election, it remains unclear when the government could declare the RET terminated.

Independent modelling commissioned by the Climate Institute and other environmental groups, and which will be released Monday, found that under the termination scenario, coal-fired power generators would reap an extra $25 billion in profits between 2015 and 2030.

There would be no reduction to household power prices and carbon emissions would climb by 15 million tonnes a year on the back of a 9 percent increase in coal-fired power.

Diminished investments

Abolishing the RET would diminish investment in renewable energy by $10.6 billion, said the modelling, conducted by consulting firm Jacobs.

Conceived under the Howard government, the RET mandated that 20 per cent of Australia’s electricity be generated from renewable sources by 2020. The Abbott government has been lobbied heavily by the business and energy sectors to abolish or water it down as renewable energy gained a larger than expected share of the electricity market.

When the RET was first conceived, it was envisaged 20 per cent of total power production by 2020 would equate to 41,000 gigawatt/hours of renewable energy produced each year.

Under the scaleback favoured by Mr Hunt, annual production of renewable energy in 2020 would be reduced to 27,000GWh. But this would still amount to 20 per cent of total energy production because forecast total energy production for 2020 had been downgraded due to the decline in manufacturing, especially the collapse of the car industry and the closure of two aluminium smelters. This is known as the “real 20 per cent” option.

The abolition proposal would reduce renewable energy production in 2020 to 16,000GWh.

It is understood Mr Abbott’s office was briefed on the recommendations of the Warburton review in late July. The review found the RET did not add significantly to household and commercial power bills, as its critics, including Mr Abbott, had argued, and that it should be scaled back to the real 20 per cent model as advocated by Mr Hunt.

With the government favouring ­termination, Mr Warburton was asked to give the option more consideration and his report is expected this week.

Energy oversupply

The government source said the market was oversupplied with energy and there was no longer any cause for a mandated use of any specific type of power. The source said while there would be investment losses if the RET was abolished, or even scaled back, investors “would have to have been blind to know this wasn’t coming”.

Miles George, managing director of renewable company Infigen Energy, said either scaling back or terminating the RET “would be devastating”.

He said the creation of sovereign risk would be significant and the very issue had been raised by prospective foreign investors, including Canadian pension funds which Mr Abbott sought to woo when abroad in June.

“Infigen’s shareholder base of over 20,000 investors has invested in renewable energy in Australia on the basis of a fixed target of 41,000 GWh by 2020,” Mr George said. “This is no different to investors in private public partnerships acquiring a toll road concession, or a port lease.

“If the Government pulls the rug from under institutional investors in renewable energy we shouldn’t expect those investors to come back to buy other infrastructure assets here, including the electricity networks and generation assets that the governments of NSW and Queensland are proposing to sell or lease.”
Australian Financial Review

The AFR touts the wind industry line about “diminished investments”, as if wind power outfits are lining up to make an outright, “no-strings-attached” gift of $10.6 billion to Australian power consumers.

On that spin, Australia’s power punters are meant to fear the “loss” and shed a tear for cowboys like Infigen (aka Babcock & Brown) who are, apparently, just itching to give their investors’ money away.

Of course, like every investment, those stumping up the capital will only do so where a juicy return is on offer; and, under the current 41,000 GWh target set by the mandatory RET, the returns promised to be very “juicy”, indeed. Until now.

So let’s have a look at just who ends up paying for the promised (or, rather, threatened) $billions in wind power investment: we’ll call it $10 billion for ease of reference.

Before we kick off, there are a few things to note.

First, is that around 50% of the value of the threatened “investment” will go to foreign turbine manufacturers in China, India and Denmark. So that sends at least $5 billion offshore; adding to Australia’s current account deficit.

Next, is the fact that the great bulk of any wind power “investment” is underwritten by all Australian power consumers via the mandatory RET – as detailed below.

And it needs to borne in mind that any “investment” in wind power generation capacity has to be matched with an equal investment in fossil fuel generation capacity (principally fast-start-up Open Cycle Gas Turbines) to provide power to balance the grid (the need for which increases – along with the need for additional spinning reserve held by base-load thermal generators – due to the wild fluctuations in wind power output – see our post here) and to accommodate routine, but unpredictable, collapses in wind power output (our posts here and hereand here and here and here and here and here and here).

The greater the amount of installed wind power capacity, the greater the need for highly inefficient OCGTs – the installation of which needs to be financed, allowing for returns to those providing the capital: a cost that is never included in calculations accounting for the costs attached to wind power generation (see our post here).

As noted by the AFR, the Australian energy market is oversupplied, which means any further investment in an unpredictable and unreliable source like wind power will simply cause further and substantial increases in retail power prices, additional grid instability and energy market chaos – precisely the circumstances the Germans now find themselves in, after years of runaway renewable energy policy (see our post here).

An “investment” NOT a “gift”

Any investor naturally looks for a return on a capital investment. Ideally, that return exceeds bank interest and – if there is any risk involved – accounts for that risk by way of higher returns. Investors in wind farm projects aim for a gross return on the capital invested in the order of 20% per annum.

That means that the investors stumping up $10 billion to build new wind power capacity will be looking to recover $2 billion from power consumers each and every year to achieve that level of return: returns on wind power investments can only be recouped via income received from power sales – there is NO other source of revenue.

So, rather than being the objects of $10 billion in wind industry largesse, power consumers are being lined up for an enormous, additional and – because there is already ample generating capacity to meet (declining) demand well into the future – completely unnecessary $2 billion hit in the hip pocket each and every year.

A fair slice of the $2 billion annual return on investment required by investors would be recouped via power bills in the form of Renewable Energy Certificates (RECs): a Federal Tax on all Australian electricity consumers. RECs are issued to wind power generators and transferred to retailers under the Power Purchase Agreements signed between them (see our post here).

Which brings us to another furphy trotted out in the AFR piece – based on “modelling” by wind industry cheer squad, the Climate Institute – that the mandatory RET hasn’t had any significant effect on retail power prices; and that scrapping it would not result in any decrease in power bills.

As we’ve just pointed out, the $10 billion in threatened wind power investment would, alone, add $2 billion to Australian power bills each and every year: no return, no “investment” – simple as that.

The true cost of the mandatory RET

As is the style of the wind industry and its parasites, whenever they’re pitching about the “wonders” of wind it’s all done with “modelling” and never with real numbers. Smoke and mirrors stuff, using assumptions that never hold water – and always ignoring the terms of the legislation upon which the whole rort depends.

So – let’s forget about “models” – based on nonsensical and unjustified assumptions – and simply apply a little old fashioned arithmetic to the provisions that make up the mandatory RET.

Putting aside the hidden costs of providing fossil fuel back up to cover the occasions when wind power output plummets every day – and for days on end (see our post here); putting aside the need for a duplicated network to carry wind power from the back blocks to urban markets (seeour post here); putting aside the cost of running highly inefficient Open Cycle Gas Turbines to cover wind power “outages” (see our post here), for the purpose of this argument let’s just focus on the cost of Renewable Energy Certificates and their bedmate – the mandated shortfall charge.

Under the mandatory RET – retailers are fined $65 per MWh for every MW they fall below the mandated annual target: what’s called the “shortfall charge” – follow the links here and here. The shortfall charge is directed straight to the Commonwealth, ending up as general revenue.

The alternative is to buy RECs (which is done via the retailer’s PPA with the wind power generator) and surrender them as proof that the retailer has purchased a MWh of renewable energy.

Wind power generators are issued 1 REC for every MWh of power dispatched to the grid – and this deal continues until 2031: the operator of a turbine erected in 2005 will receive RECs (1 per MWh dispatched) each and every year for 26 years.

Since the RET began in April 2001, over 195 million RECs have been created – worth more than $8 billion – the cost of which has all been added to our power bills.

The cost of the REC is ultimately borne by retail customers and, therefore, constitutes a Federal Tax on all Australian electricity consumers (see our post here).

Time for a little arithmetic.

If no RECs were purchased, retailers would simply be hit with the $65 per MWh shortfall charge on the entire figure set by the mandatory RET legislation (see the link here).

That cost alone would add $2.665 billion to power bills annually from 2020 to 2031.

Alternatively, if sufficient RECs to satisfy the target were purchased at $100, say, the cost rises to $4.1 billion a year from 2020 through to 2031.

Year RET in MWh (millions) Shortfall Charge
(or RECs) @ $65
RECs @ $100
2014 16.1 $1,046,500,000 $1,610,000,000
2015 18 $1,117,000,000 $1,800,000,000
2016 22.6 $1,469,000,000 $2,260,000,000
2017 27.2 $1,768,000,000 $2,720,000,000
2018 31.8 $2,067,000,000 $3,180,000,000
2019 36.4 $2,366,000,000 $3,640,000,000
2020 41 $2,665,000,000 $4,100,000,000
2021 41 $2,665,000,000 $4,100,000,000
2022 41 $2,665,000,000 $4,100,000,000
2023 41 $2,665,000,000 $4,100,000,000
2024 41 $2,665,000,000 $4,100,000,000
2025 41 $2,665,000,000 $4,100,000,000
2026 41 $2,665,000,000 $4,100,000,000
2027 41 $2,665,000,000 $4,100,000,000
2028 41 $2,665,000,000 $4,100,000,000
2029 41 $2,665,000,000 $4,100,000,000
2030 41 $2,665,000,000 $4,100,000,000
  Total $36,483,500,000 $56,210,000,000

 

RECs are currently trading around $30, but, as the target starts to bite from 2017, the price is expected to reach $90 and is tipped to reach $100 beyond that.

The shortfall charge (as a fine) is a cost that the retailer can’t claim as a legitimate tax deduction, whereas the REC is – this places an added value on the REC to the extent that its face value can reduce the retailer’s taxable income. At a minimum then, RECs can be expected to trade at a figure at least equal to the shortfall charge. But with the tax benefit attached, RECs would be worth at least $94 – based on a shortfall charge of $65.

At the bottom end, this means the value of RECs surrendered (and/or the shortfall charge applied) will add over $36 billion to power bills over the next 17 years. At the top end, the figure (assuming RECs hit $100 by 2017) will exceed $50 billion.

These figures represent the greatest transfer of wealth in the history of the Commonwealth: a transfer that comes at the expense of the poorest and most vulnerable in society; struggling manufacturing businesses, real jobs and families. To call the mandatory RET obscene is pure understatement. No single policy has ever threatened to cost so much for nothing in return.

It’s these hard and fast facts that have united the PM, his Treasurer and Finance Minister with the intention of killing the mandatory RET outright; and the vast majority of the Coalition are right behind them. The sooner the Coalition axe it, the better. The mandatory RET must go now.

chop-wood-axe-downgrade

Getting Rid of Windweasels is Easy….Just Turn Off the Money Tap!

European Governments Rip Up Wind Power Contracts

jerry maguire

In recent weeks there has been a cacophony of wind industry rent-seeker bleating. Turbine makers, like America’s GE have been running hard in the press touting the “merits” of retaining the mandatory Renewable Energy Target – a scheme that will see $50 billion added to Australian power bills and directed to wind power outfits over the next 17 years (see our post here): a whopping proportion of which would end up in the pockets of fan makers like GE – no self-interest there.

Retaining the RET would allow GE to line up for a double-helping. Not only does it make giant fans, it also makes the Open Cycle Gas Turbines that provide the “fire-up-in-a-heartbeat” back-up essential to accommodate daily collapses in wind power output – that can’t be predicted, but which happen on a routine basis (see our posts here andhere and here and here and here and here and here and here). The greater the installed capacity of wind power, the more OCGTs that are needed to balance the grid and back it up when it goes AWOL (see our post here).

The wind industry and its coterie of parasites, consultants and hangers-on are in flat panic about what the RET Review Panel is going to recommend; seizing on every recent breath and utterance from Panel head, Dick Warburton – and dissecting it with the earnestness of a Witch Doctor looking for omens in entrails. Here’s a little piece from The Australian that suggests the omens aren’t what the wind industry was looking for.

AEMO report ‘a very large part’ of RET Review
The Australian
John Conroy
11 August 2014

Dick Warburton, the head of the federal government’s panel reviewing the Renewable Energy Target, has told journalists that a report finding Australia would not need to add any generation capacity to meet demand in the next 10 years had formed “a very large part” of his panel’s findings, Fairfax Media reports.

According to the news service, Mr Warburton, a businessman and climate sceptic appointed by the Abbott Government to head the review, was referring to an Australia Energy Market Operator analysis finding there will be more electricity generation than required until 2024.

“It’s hard to interpret those remarks any other way – that they’re likely to recommend that the [target] be scaled back,” Hugh Saddler, of consultants Pitt & Sherry, told Fairfax.
The Australian

Just what Dick Warburton’s views on climate change have to do with the RET review is a little puzzling?

The largest current (and potential) beneficiary of the RET rort is the wind industry and (assuming “climate change” is all down to carbon dioxide gas) it’s yet to produce any credible evidence that wind power has reduced CO2 emissions in the electricity sector, which is probably because studies based on actual data point in the opposite direction (see this American article here; this European paper here; this Irish paper here; this English paper here; and this Dutch study here). If CO2 emissions are the cause of “climate change”, then wind power sure ain’t the solution.

With the current 41,000 GWh target set by the mandatory RET almost certain to get the chop, the wind industry has been wailing louder than ever about “sovereign risk” and the need to be “compensated” for any change to the target; as if Renewable Energy Certificates were some God-given-right. In this post, WA Senator, Chris Back slammed that one straight over the long-boundary, based on Parliamentary advice which, funnily enough, reflects what STT has already said on the issue (see our postshere and here).

Meanwhile in Europe, governments – being bled to death by the obscene subsidy streams set up by their renewables policies – are tearing up contracts with wind and solar power outfits – apparently unmoved by the howls of outfits that would have never existed, but for the unwilling largesse of taxpayers and power consumers. The Spanish, Italians, French and Belgians have all woken up to the fact that these schemes are simply unsustainable and have to go. Here’s the Financial Post on the great renewables retreat.

Governments rip up renewable contracts
Financial Post
Brady Yauch
19 March 2014

Companies ‘do not have a right [to expect the compensation] not to be changed’. 

Governments across Europe, regretting the over-generous deals doled out to the renewable energy sector, have begun reneging on them. To slow ruinous power bills hikes, governments are unilaterally rewriting contracts and clawing back unseemly profits.

In Italy, one of Europe’s largest economies and one that lavished billions in subsidies on the renewable sector, the government in 2013 applied its so-called “Robin Hood tax” to renewable energy producers. Under the new rule, renewable energy producers with more than €3 million in revenue and income greater than €300,000 must now pay a tax of 10.5%.

That follows a 2012 move to charge all solar producers a five cent tax per kilowatt hour on all self-consumed energy. The government also told solar producers that it would stop taking their power – and would offer no compensation – when their output overwhelms the system.

The result of these and other changes, says the solar industry, has been a surge in bankruptcies and a massive decrease in solar investment.

In Belgium – where both regional and federal bodies hand out renewable subsidies – a number of retroactive changes have capped the largesse renewable producers once received. In one region the price for “green certificates” – which producers received for renewable energy – was slashed by 79%. The government original committed to buy green certificates at a benchmarked price for 20 years, then cut it to 10 years.

Belgium’s regulators tried to impose a fee on all energy added to the grid from small- to medium-sized solar producers. While the country’s court of appeals struck down that fee, a defiant regional government plans to reintroduce it next year, forcing all solar producers to pay an annual fee that varies with the power they pump into the grid. Various municipalities, meanwhile, are introducing taxes on new and existing wind turbines.

As in Italy, Belgium’s renewable sector in the country has gone dark –“imploded” in the view of a solar industry publication. Many companies shrank or went bankrupt.

In France the government last year cut by 20% the “guaranteed” rate offered to all solar producers, and retroactively applied it to projects connected to the grid in the previous three months. The government is also considering ending an 11% tax break on solar energy producers.

Perhaps the most dramatic moves occurred in Spain, for years the poster child for those touting a transition to green energy. Since 2000, Spain has given renewable producers $41-billion more for their power than it has fetched on the open market.

To recover those subsidies, the Spanish government recently killed its Feed In Tariff (FIT) program for renewables, which paid them an outlandishly high guaranteed price for their power, replacing it with the market price for their power plus a subsidy deemed more “reasonable.” Companies’ profits are now capped at a 7.4% return, following which they must then sell their power at market rates. That measure is retroactive, with renewable energy producers who got too fat off their profits now being starved until they reach the 7.4% cap.

For example, if a company spent $100-million on a solar installation in Spain and was posting a return of 14%, or $14-million, annually on that investment, then the government would cut it off from subsidies until its total return – starting from when it was first built – fell to 7.4%, or $7.4 million, a year.

Wind projects built before 2005 will no longer receive any form of subsidy – a move a wind energy trade group called a “sacking” of the sector that will see more than a third of wind producers lose their subsidy.

The fallout in Spain was immediate. Its solar sector, which once employed 60,000 workers, now employs 5,000. The wind sector is estimated to have laid off 20,000 workers. Ikea – the Swedish furniture retailer that became enamoured of renewables – announced it was cutting its losses and abandoning a solar plant it had built in Spain. Investment in the sector also collapsed. In 2011, Spain attracted $10 billion in solar investment. In 2013, the level of investment dropped by almost 90%.

Spain’s Supreme Court offered no sympathy to the solar industry, in ruling against its argument that the government’s retroactive changes were wrong. “The evolution of the energy sector … was putting the financial sustainability of the electricity system at risk,” the court decided, adding that the companies “do not have a right [to expect the government compensation regime] not to be changed.”

Europe’s renewable energy investors are facing a harsh reality – that the promises from politicians can be taken away at any moment. Canada’s renewable energy investors may soon face that same reality.

Brady Yauch is an economist and executive director of Consumer Policy Institute, a division of Energy Probe Research Foundation.
Financial Post

man-with-lots-cash-money

Wind Power Does Nothing to Help Our Environment! Faux-green…

How Much CO2 Gets Emitted to Build a Wind Turbine?

turbine base

The ONLY justification for wind power – the massive subsidies upon which it entirely depends (see our post here); spiralling power prices (seeour post here); and the suffering caused to neighbours by incessant low-frequency noise and infrasound (see our post here) – is the claim that it reduces CO2 emissions in the electricity sector.

STT has pointed out – just once or twice – that that claim is nothing more than a central, endlessly repeated lie. Because wind power fails to deliver at all hundreds of times each year, 100% of its capacity has to be backed up 100% of the time by fossil fuel generation sources – which run constantly in the background to balance the grid and prevent blackouts when wind power output collapses – as it does on a routine, but unpredictable, basis (see our posts here and here and here and here andhere and here and here and here).

But – even before the blades start spinning – the average wind farm clocks up thousands of tonnes of CO2 emissions: “embedded” in thousands of tonnes of steel and concrete. So, every wind farm starts with its CO2 abatement ledger in the negative.  Here’s Andy’s Rant with a breakdown of just how much CO2 goes to build a giant fan.

So what’s the carbon foot print of a wind turbine with 45 tons of rebar & 481m3 of concrete?
Andy’s Rant
4 August 2014

Its carbon footprint is massive – try 241.85 tons of CO2.

Here’s the breakdown of the CO2 numbers.

To create a 1,000 Kg of pig iron, you start with 1,800 Kg of iron ore, 900 Kg of coking coal 450 Kg of limestone. The blast furnace consumes 4,500 Kg of air. The temperature at the core of the blast furnace reaches nearly 1,600 degrees C (about 3,000 degrees F).

The pig iron is then transferred to the basic oxygen furnace to make steel.

1,350 Kg of CO2 is emitted per 1,000 Kg pig iron produced.

A further 1,460 Kg CO2 is emitted per 1,000 Kg of Steel produced so all up 2,810 Kg CO2 is emitted.

45 tons of rebar (steel) are required so that equals 126.45 tons of CO2 are emitted.

To create a 1,000 Kg of Portland cement, calcium carbonate (60%), silicon (20%), aluminium (10%), iron (10%) and very small amounts of other ingredients are heated in a large kiln to over 1,500 degrees C to convert the raw materials into clinker. The clinker is then interground with other ingredients to produce the final cement product. When cement is mixed with water, sand and gravel forms the rock-like mass know as concrete.

An average of 927 Kg of CO2 is emitted per 1,000 Kg of Portland cement. On average, concrete has 10% cement, with the balance being gravel (41%), sand (25%), water (18%) and air (6%). One cubic metre of concrete weighs approx. 2,400 Kg so approx. 240 Kg of CO2 is emitted for every cubic metre.

481m3 of concrete are required so that equals 115.4 tons of CO2 are emitted.

Now I have not included the emissions of the mining of the raw materials or the transportation of the fabricated materials to the turbine site so the emission calculation above would be on the low end at best.

Extra stats about wind turbines you may not know about:

The average towering wind turbine being installed around beautiful Australia right now is over 80 metres in height (nearly the same height as the pylons on the Sydney Harbour Bridge). The rotor assembly for one turbine – that’s the blades and hub – weighs over 22,000 Kg and the nacelle, which contains the generator components, weighs over 52,000 Kg.

All this stands on a concrete base constructed from 45,000 Kg of reinforcing rebar which also contains over 481 cubic metres of concrete (that’s over 481,000 litres of concrete – about 20% of the volume of an Olympic swimming pool).

Each turbine blade is made of glass fibre reinforced plastics, (GRP), i.e. glass fibre reinforced polyester or epoxy and on average each turbine blade weighs around 7,000 Kg each.

Each turbine has three blades so there’s 21,000 Kgs of GRP and each blade can be as long as 50 metres.

A typical wind farm of 20 turbines can extend over 101 hectares of land (1.01 Km2).

Each and every wind turbine has a magnet made of a metal called neodymium. There are 2,500 Kg of it in each of the behemoths that have just gone up around Australia.

The mining and refining of neodymium is so dirty and toxic – involving repeated boiling in acid, with radioactive thorium as a waste product – that only one country does it – China. (See our posts here and here).

All this for an intermittent highly unreliable energy source.

And I haven’t even considered the manufacture of the thousands of pylons and tens of thousands of kilometres of transmission wire needed to get the power to the grid. And what about the land space needed to house thousands of these bird chomping death machines?

You see, renewables like wind turbines will incur far more carbon dioxide emissions in their manufacture and installation than what their operational life will ever save.

Maybe it’s just me, but doesn’t the “cure” of using wind turbines sound worse than the problem? A bit like amputating your leg to “cure” your in-growing toe nail?

Metal emission stats from page 25 from the 2006 IPCC Chapter 4 Metal Industry Emissions report.

Cement and concrete stats from page 6 & 7 from the 2012 NRMCA Concrete CO2 Fact Sheet.
Andy’s Rant

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