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‘Gambling With The Grid’: New Data Highlights Achilles’ Heel Of One Of Biden’s Favorite Green Power Sources

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From the Daily Caller News Foundation

By NICK POPE

 

New government data shows that wind power generation fell in 2023 despite the addition of new capacity, a fact that energy sector experts told the Daily Caller News Foundation demonstrates its inherent flaw.

Wind generation fell by about 2.1% in 2023 relative to 2022 generation, despite the 6 gigawatts (GW) of wind power capacity that came online last year, according to data published Tuesday by the U.S. Energy Information Administration (EIA). That wind power output dropped despite new capacity coming online and the availability of government subsidies highlights its intermittency and the problems wind power could pose for grid reliability, energy sector experts told the DCNF.

The decrease in wind generation is the first drop on record with the EIA since the 1990s; the drop was not evenly distributed across all regions of the U.S., and slower wind speeds last year also contributed to the decline, according to EIA. The Biden administration wants to have the American power sector reach carbon neutrality by 2035, a goal that will require a significant shift away from natural gas- and coal-fired power toward wind, solar and other green sources.

A table depicting the decrease of wind power generation in 2023 relative to 2022. (Screenshot via U.S. Energy Information Administration)

“Relying on wind power to meet your peak electricity demands is gambling with the grid,” Isaac Orr, a policy fellow at the Center of the American Experiment who specializes in power grid-related analysis, told the DCNF. “Will the wind blow, or won’t it? This should be a moment where policymakers step back and consider the wisdom of heavily subsidizing intermittent generators and punishing reliable coal and gas plants with onerous regulations.”

Between 2016 and 2022, the wind industry received an estimated $18.6 billion worth of subsidies, about 10% of the total amount of subsidies extended to the energy sector by the U.S. government, according to an August 2023 EIA report. Wind power received more assistance from the government than nuclear power, coal or natural gas over the same period of time.

“This isn’t subsidies per kilowatt hour of generation. It’s raw subsidies. If it were per kilowatt hour of generation, the numbers would be even more extreme,” Paige Lambermont, a research fellow at the Competitive Enterprise Institute, told the DCNF. “This is a massive amount of money. It’s enough to dramatically alter energy investment decisions for the worse. We’re much more heavily subsidizing the sources that don’t provide a significant portion of our electricity than those that do.”

“Policy that just focuses on installed capacity, rather than the reliability of that capacity, fails to understand the real needs of the electrical grid,” Lambermont added. “This recent disparity illustrates that more installed wind capacity does not necessarily correlate with more wind power production. It doesn’t matter how much wind you add to the grid, if the wind isn’t blowing at peak demand time, that capacity will go to waste.”

Wind power’s performance was especially lackluster in the upper midwest, but Texas saw more wind generation in 2023 than it did in 2022, according to EIA. Wind generation in the first half of 2023 was about 14% lower than it was through the first six months of 2022, but generation was higher toward the end of 2023 than it was during the same period in 2022.

In 2023, about 60% of all electricity generated in the U.S. came from fossil fuels, while 10% came from wind power, according to EIA data. Beyond generous subsidies for preferred green energy sources, the Biden administration has also aggressively regulated fossil fuels and American power plants to advance its broad climate agenda.

The Environmental Protection Agency’s (EPA) landmark power plant rules finalized this month will threaten grid reliability if enacted, partially because the regulations are likely to incentivize operators to close plants rather than adopt the costly measures required for compliance, grid experts previously told the DCNF. At the same time that the Biden administration is effectively trying to shift power generation away from fossil fuels, it is also pursuing goals — such as substantially boosting electric vehicle adoption over the next decade and incentivizing construction of energy-intensive computer chip factories — that are driving up projected electricity demand in the future.

“The EIA data proves what we’ve always known about wind power: It is intermittent, unpredictable and unreliable,” David Blackmon, a 40-year veteran of the oil and gas industry who now writes and consults on the energy sector, told the DCNF. “Any power generation source whose output is wholly dependent on equally unpredictable weather conditions should never be presented by power companies and grid managers as safe replacements for abundant, cheap, dispatchable generation fueled with natural gas, coal or nuclear. This is a simple reality that people in charge of our power grids too often forget. Saying that no doubt hurts some people’s feelings, but nature really does not care about our feelings.”

Blackmon also pointed out that, aside from its intermittency, sluggish build-out of the transmission lines and related infrastructure poses a major problem for wind power.

“Wind power is worthless without accompanying transmission, yet the Biden administration continues to pour billions into unreliable wind while ignoring the growing crisis in the transmission sector,” Blackmon told the DCNF.

Another long-term issue that wind power, as well as solar power, faces is the need for a massive expansion in the amount of battery storage available to store and dispatch energy from intermittent sources as market conditions dictate. By some estimates, the U.S. will need about 85 times as much battery storage by 2050 relative to November 2023 in order to fully decarbonize the power grid, according to Alsym Energy, a battery company.

The White House and the Department of Energy did not respond to requests for comment.

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Business

‘TERMINATED’: Trump Ends Trade Talks With Canada Over Premier Ford’s Ronald Reagan Ad Against Tariffs

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From the Daily Caller News Foundation

By Melissa O’Rourke

President Donald Trump announced late Thursday that trade negotiations with Canada “ARE HEREBY TERMINATED” after what he called “egregious behavior” tied to an Ontario TV ad that used former President Ronald Reagan’s voice to criticize tariffs.

The ad at the center of the feud was funded by Ontario Premier Doug Ford’s government as part of a multimillion-dollar campaign running on major U.S. networks. The spot features Reagan warning that tariffs may appear patriotic but ultimately “hurt every American worker and consumer.”

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“They only did this to interfere with the decision of the U.S. Supreme Court, and other courts. TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A,” Trump wrote on his Truth Social platform late Thursday. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

Ford first posted the ad online on Oct. 16, writing in a caption, “Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together.”

The Ronald Reagan Presidential Foundation and Institute criticized the ad Thursday evening, saying it “misrepresents” Reagan’s 1987 radio address on free and fair trade. The foundation said Ontario did not request permission to use or alter the recording and that it is reviewing its legal options.

The president posted early Friday that Canada “cheated and got caught,” adding that Reagan actually “loved tariffs for our country.”

The ad splices audio from Reagan’s original remarks but includes his authentic statement: “When someone says, ‘let’s impose tariffs on foreign imports’, it looks like they’re doing the patriotic thing by protecting American products and jobs. And sometimes, for a short while it works, but only for a short time.”

Reagan also noted at the end of his remarks that, in “certain select cases,” he had taken steps to stop unfair trade practices against American products and added that the president’s “options” in trade matters should not be restricted, which the ad did not include.

Since returning to the White House, Trump has imposed tariffs on Canadian aluminum, steel, automobiles and lumber, arguing they are vital to protecting U.S. manufacturing and national security.

The Supreme Court is set to hear arguments in November over whether the administration overstepped its authority by invoking the International Emergency Economic Powers Act to impose reciprocal tariffs on dozens of nations, including Canada. Tariffs on commodities such as steel, aluminum and copper were implemented under Section 232 of the Trade Expansion Act and are not currently being challenged, as they align with longstanding precedent established by prior administrations.

Thursday’s move marks the second time this year Trump has canceled trade talks with Ottawa. In June, he briefly halted discussions after Canada imposed a digital services tax on American tech firms, though the Canadian government repealed the measure two days later.

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Business

A Middle Finger to Carney’s Elbows Up

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Benjamin J. Dichter's avatar Benjamin J. Dichter

Elbows Up Stengthens U.S. Tariff Resolve at Canada’s Expense

The disastrously misguided “Elbows Up” campaign championed by the Carney government rooted in the fantasy that a smug, arrogant Liberal elite wields leverage over the largest economy in human history, has suffered yet another devastating blow. The latest fallout: U.S.-based truck manufacturer Paccar Inc., maker of iconic heavyweights such as Kenworth and Peterbilt, is slashing Canadian production and laying off hundreds of workers in anticipation of a 25-per-cent U.S. import tariff set to take effect next month.

Employees at Paccar’s Sainte-Thérèse, Quebec plant were informed Wednesday that the company will move production of trucks destined for the U.S. market back to its American facilities. According to Daniel Cloutier, Quebec director for Unifor, approximately 300 jobs will be eliminated, leaving roughly 500 workers at the plant.

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“They will continue building trucks for the Canadian market,” Cloutier said, noting that domestic demand represents a much smaller portion of output. At its peak, the plant produced 96 trucks per day; production will now drop to just 18 units daily. That is an 81% drop.

Paccar declined to confirm the restructuring or provide additional details. However, in a financial earnings call a day earlier, CEO Preston Feight described the U.S. tariff policy as advantageous for the company. “I think it helps Paccar significantly,” Feight said. “It gives us a competitive leg up from where we’ve been.”

U.S. Tariffs Driving Industry Shift

U.S. President Donald Trump has confirmed that all medium and heavy-duty trucks imported into the United States will face a 25-per-cent tariff beginning Nov. 1, along with an additional 10-per-cent duty on buses. The tariffs are being imposed under Section 232 of the Trade Expansion Act, which targets imports deemed to pose a national security risk.

These measures follow earlier tariffs that have already struck Canadian steel, aluminum, automobiles, copper, and lumber, forcing companies to shelve investments and reconsider their North American strategies.

Broader Auto Sector Retrenchment

Other automakers are also pulling back production in Canada. General Motors announced Tuesday it is ending production of the Chevrolet BrightDrop electric delivery van in Ingersoll, Ontario, costing over 1,100 workers their jobs. Stellantis recently confirmed plans to shift production of the Jeep Compass from Brampton, Ontario, to Belvidere, Illinois, as part of a strategy to increase U.S. output by 50 per cent by 2029.

Quebec Plant at Risk

The Sainte-Thérèse plant, which manufactures Class 5, 6 and 7 Kenworth and Peterbilt trucks, has already endured two rounds of layoffs over the past year as uncertainty around tariffs weakened demand. At peak production, the facility employed over 1,400 people.

Cloutier said the union is pressing both the Quebec and federal governments to prioritize the purchase of domestically made vehicles to sustain production levels. Without such measures, he warned, the plant could be forced to close due to high fixed costs and insufficient volume. “Let’s not pretend global trade hasn’t changed with this President,” Cloutier said. “We need to stop twiddling our thumbs.”

Bus Manufacturers Also Exposed

Quebec is also home to two major bus manufacturers, Prevost and Nova Bus, both owned by Volvo Group that could face similar challenges due to new tariffs on buses entering the U.S. Executives at both companies say they are still assessing the impact of the policy shift.

What can we learn from all this?

Perhaps our deep reliance on American innovation has consequences we have been unwilling to confront. The warning signs were evident well before Donald Trump’s election. He was explicit that tariffs would be used as a strategic tool to financially incentivize American companies to return to the United States. This was not hidden, it was a core pillar of his economic agenda.

I have said repeatedly on the Marc Patrone Show on Sauga 960 that my frustration is not with America’s strategy, but with Canada’s political class. Their smug arrogance lies in the belief that, as great as Canada can be, we could somehow dominate the greatest economy in the history of civilization rather than work with it. The Trump administration never wanted Canada to become the 51st state; they want our valuable resources and are willing to pay fair value for them, and they expect Canada to finally take our internal security threats seriously; something I have personally presented on in the United States. Yet instead of leveraging our strategic position, Canada’s leadership chose performative resistance over pragmatic partnership.

The most telling moment came when President Trump reportedly asked Justin Trudeau what would happen if the United States imposed a 25-per-cent tariff on all Canadian goods. Trudeau’s response, “It would destroy Canada” was an example of catastrophic stupidity. It handed Trump the gun he could use to execute Canada economically and perhaps cost Canada its sovereignty over the long term.

Reminiscent of the scene from The Hunt for Red October, when Captain Tupolev, in an act of smug Laurentian style arrogance, fires a torpedo at Ramius only for it to circle back and destroy his own submarine, a catastrophic miscalculation born of arrogance and a complete misunderstanding of the enemy’s capabilities. A catastrophic miscalculation that mirrors Elbows Up stupidity.


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