Tags: government | aid | wind | power

Wind Farm Boss: Ditch Our Subsidies

Tuesday, 02 Apr 2013 12:21 PM

By Newsmax Wires

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Government aid to the wind power industry should be cut, helping to spark innovation and reduce prices, says Patrick Jenevein, CEO of Tang Energy Group, a wind power provider.

“Without subsidies, the wind industry would be forced to take a hard fresh look at its product,” he writes in The Wall Street Journal.

“Fewer wind farms would be built, eliminating the market-distorting glut. And if there is truly a need for wind energy, entrepreneurs who improve the business's fundamentals will find a way to compete.”

So the automatic spending cuts known as the sequester are doing the industry a favor by cutting cash grants from the government by 8.7 percent, Jenevein says.

Wind power companies have two tax credits — one that applies to their investment in a new project, and one based on how much power they actually produce. The former has proven more popular, Jenevein says. But it distorts the market by creating incentives to build wind projects regardless of their merit.

“Government subsidies to new wind farms have only made the industry less focused on reducing costs,” he states. “In turn, the industry produces a product that isn't as efficient or cheap as it might be if we focused less on working the political system and more on research and development.”

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Jerry Boykin: Army Wrong to Punish Chaplain for Spiritual Advice

Friday, 19 Dec 2014 11:27 AM

The Army violated a chaplain's constitutional right of religious freedom , and its own rules , by reprimanding him for g . . .

Opening With Cuba Raises Risks to Florida's Borders

Friday, 19 Dec 2014 09:38 AM

President Obama's announcement on Wednesday that the United States would normalize relations with Cuba will significantl . . .

WSJ: Cigar Lovers Still Face Long Wait To Puff a Cohiba

Friday, 19 Dec 2014 09:33 AM

Cigar aficionados who are dreaming of puffing on a nice Cohiba following the White House‚Äôs shift in Cuba policy are like . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved