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China Makes Sure Alternative Energy Pays Before Investing

China Makes Sure Alternative Energy Pays Before Investing

Because the advantages gained from generating electricity through rubbish burning are appreciable, plants like this one in Shenzen, China are constructed. (Pingan Yang/Dreamstime)

By Thursday, 30 August 2018 12:35 PM Current | Bio | Archive

In order to become a member of the World Trade Organization (WTO), China had to conform to rules such as it had to agree that Global Warming exists and, as collateral, invest heavily in green energy projects.

In order to meet the last criteria, China invested billions of dollars in wind farms and covered hundred thousand of otherwise agriculturally usable acres with solar cells (PV plants).

As in the U.S., no sane president of an electric power plant would invest large parts of his capital in very inefficient schemes such as in wind turbines or solar cells, were it not for government subsidies, either in the form of monetary payments, tax reductions or allowing the company to pass the extra cost back to the consumer. See my blog of Nov. 11, 2016, "The Truth about Green Energy."

Until now, a similar system existed in China that is until subsidies got out of hand and, as of 2017, China had a subsidy shortfall of 15 billion dollars. As a result, on June 1, 2018, the Chinese Energy Administration issued a rule which stopped the construction of any new PV (solar cell) plants during 2018.

The rule also forbids local governments from paying subsidies for new PV installations. As a result, in the future, there should be no more government subsidized PV installations being built.

The rule furthermore reduced the feed-in dollars per KW payments from PV operators to regular power plants. The reason for the rule is to put the whole PV business on an orderly footing, preventing the oversupply of such plants in certain areas, leading to idling and even abandoning of some installations.

It is interesting that China finally reverts to a capitalistic system, where one only builds equipment in the hope of future profits — and not to please politicians.

California take note! Apparently persuasion, tax credits, and subsidizes were not enough, soon all Californians will be forced to install solar panels on top of new houses.

The future of electricity generating wind farms may also be in doubt partly because the U.S. government’s "wind energy production tax credit," now at 20 percent will see an annual phase-down beginning this year. The Canadian province of Alberta, for example, already has a surplus of wind farm generated electricity and such power cannot compete against cheaper hydro-power.

The British Columbia Hydro-Power Company (BC Hydro) declared "that there would be no need to procure any additional power (from wind farms) until at least 2030."

It is anticipated that there will be a conference in Quebec discussing the future of Canadian wind power.

Hans Baumann is a licensed engineer in four states and a member of Sigma Xi, the Scientific Research Society. He is an adviser to the dean of the University of New Hampshire Business School. Dr. Baumann has published manuals on valves and was a contributor to many works including the "Instrument Engineers' Handbook" and the "Control Valves Handbook." He has also published several books on business management and German history, including "Hitler's Escape," which suggests that Adolf Hitler did not commit suicide and survived World War II. In his latest book, "Atomic Irony" he proves that the Hirshoma Atom Bomb contained captured German Uranium. For more of his reports, Go Here Now.

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It is interesting that China finally reverts to a capitalistic system, where one only builds equipment in the hope of future profits, and not to please politicians.
alberta, canada, hydro, quebec, power, wind
Thursday, 30 August 2018 12:35 PM
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