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Economy

‘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

Government red tape strangling Canada’s economy

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From the Fraser Institute

By Kenneth P. Green

The cost of regulation from all three levels of government to Canadian businesses totalled $38.8 billion in 2020, for a total of 731 million hours—the equivalent of nearly 375,000 fulltime jobs.

One does not have to look too deeply into recent headlines to see that Canada’s economic conditions are declining and consequently eroding the prosperity and living standards of Canadians. Between 2000 and 2023, Canada’s per-person GDP (a key indicator of living standards) has lagged far behind its peer countries. Business investment is also lagging, as are unemployment rates across the country particularly compared to the United States.

There are many reasons for Canada’s dismal economic conditions—including layer upon layer of regulation. Indeed, Canada’s regulatory load is substantial and growing. Between 2009 and 2018, the number of regulations in Canada grew from about 66,000 to 72,000. These regulations restrict business activity, impose costs on firms and reduce economic productivity.

According to a recent “red tape” study published by the Canadian Federation of Independent Business (CFIB), the cost of regulation from all three levels of government to Canadian businesses totalled $38.8 billion in 2020, for a total of 731 million hours—the equivalent of nearly 375,000 fulltime jobs. If we apply a $16.65 per-hour cost (the federal minimum wage in Canada for 2023), $12.2 billion annually is lost to regulatory compliance.

Of course, Canada’s smallest businesses bear a disproportionately high burden of the cost, paying up to five times more for regulatory compliance per-employee than larger businesses. The smallest businesses pay $7,023 per employee annually to comply with government regulation while larger businesses pay a much lower $1,237 per employee for regulatory compliance.

And the Trudeau government has embarked on a massive regulatory spree over the last decade, enacting dozens of major regulatory initiatives including Bill C-69 (which tightens Canada’s environmental assessment process for major infrastructure projects), Bill C-48 (which restricts oil tankers off Canada’s west coast) and electric vehicle mandates (which require all new cars be electric by 2035). Other examples of government red tape include appliance standards to reduce energy consumption from household appliances, home efficiency standards to reduce household energy consumption, banning single-use plastic products, “net zero” nitrous oxide emissions regulation, “net zero” building emissions regulations, and clean electricity standards to drive net emissions of greenhouse gases in electricity production to “net zero” by 2035.

Clearly, Canada’s festooning pile of regulatory red tape is badly in need of weeding. And it can be done. For example, during a deregulatory effort in British Columbia, which appointed a minister of deregulation in 2001, there was a 37 per cent reduction in regulatory requirements in the province by 2004.

Rather with plowing ahead with an ever-growing pallet of regulations to be heaped upon Canadian businesses and citizens, government should reach for the garden shears and start reducing the most recent regulatory expansions (before they have time to do too much harm), and then scour the massive strangling forest of older regulations.

Whacking through the red tape would go a long way to help Canada’s economy out of its dismal state and back into competitive ranges with its fellow developed countries and our neighbours in the U.S.

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Trudeau’s environment department admits carbon tax has only reduced emissions by 1%

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From LifeSiteNews

By Clare Marie Merkowsky

The Trudeau Liberals had first seemed to claim that the unpopular carbon tax had cut emissions by 33%, only to explain that the figure is merely a projection for 2030 and the actual reduction thus far stands at 1%.

The Liberal government has admitted that the carbon tax has only reduced greenhouse gas emissions by 1 percent following claims that the unpopular surcharge had cut emissions by 33 percent.   

During a May 21 House of Commons environment committee meeting, Environment Minister Steven Guilbeault testified that the carbon tax cut greenhouse gas emissions by 33 percent, before his department backtracked to explain that the figure is a projection for the year 2030, and that the true figure sits at a mere 1 percent.

“I will be the first one to recognize it is complex,” said Guilbeault, according to information obtained by Blacklock’s Reporter 

“If you want simple answers, I am sorry. There is no simple answer when it comes to climate change or modeling,” he said, adding, “Carbon pricing works. This has never been clearer.”  

“Carbon pricing alone accounts for around a third of emission reductions expected in Canada,” said Guilbeault, explaining this number was based on “complex statistical calculations.”  

However, Conservative Members of Parliament (MPs) pointed out that the numbers provided by Guilbeault’s department do not add up to a 33 percent decrease in emissions, as the department had characterized.  

“How many megatonnes of emissions have been directly reduced from your carbon tax since it was introduced?” Conservative MP Dan Mazier questioned.  

According to Guilbeault, after the introduction of the carbon tax, emissions reduced by five megatonnes in 2018, fourteen megatonnes in 2019, seventeen megatonnes in 2020, eighteen megatonnes in 2021, and nineteen megatonnes in 2022.  

According to Blacklock’s, Guilbeault failed to explain how the environment department calculated a 33 percent benefit.

Conservative MP Michael Kram pressed Guilbeault, saying, “I want to make sure I have the math correct.” 

“In 2022 emissions were at 708 megatonnes and the carbon tax was responsible for reducing 19 megatonnes,” he continued. “By my math that works out to a three percent reduction.” 

Associate deputy environment minister Lawrence Hanson explained that the department’s 33 percent emissions cut is a projection of the emissions cut by 2030, not a current statistic.   

“It’s the distinction between how much the carbon price might have affected emissions in one year versus how much in 2030,” said Hanson. “So when you heard us talking about its responsible for one third of reductions we were talking about the 2030 number.” 

This explanation was echoed by Derek Hermanutz, director general of the department’s economic analysis directorate, who said, “When we talk about one third, it’s one third of our expected reductions. That’s getting to 2030.” 

“Yes, but three percent of the total emissions have been reduced as a result of carbon pricing?” Kram pressed.   

“No, emissions have declined three percent in total,” assistant deputy minister John Moffet responded.  

“And so only one percent of that three percent is from the carbon tax?” Kram asked.  

“To date,” Moffet replied. 

Prime Minister Justin Trudeau’s carbon tax, framed as a way to reduce carbon emissions, has cost Canadian households hundreds of dollars annually despite rebates. 

The increased costs are only expected to rise. A recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050. 

Currently, Canadians living in provinces under the federal carbon pricing scheme pay $80 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030. 

On April 1, Trudeau increased the carbon tax by 23 percent despite seven out of 10 provincial premiers and 70 percent of Canadians pleading with him to halt his plan. 

Despite appeals from politicians and Canadians alike, Trudeau remains determined to increase the carbon tax regardless of its effects on citizens’ lives. 

The Trudeau government’s current environmental goals – which are in lockstep with the United Nations’ 2030 Agenda for Sustainable Development – include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades. 

The reduction and eventual elimination of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum, the globalist group behind the socialist “Great Reset” agenda in which Trudeau and some of his cabinet are involved. 

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