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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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8 minute read

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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Economy

Canadians experiencing second-longest and third steepest decline in living standards in last 40 years

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From the Fraser Institute

From 2019 to 2023, Canadian living standards declined—and as of the end of 2023, the decline had not yet ended, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Despite claims to the contrary, living standards are declining in Canada,” said Grady Munro, policy analyst at the Fraser Institute and co-author of Changes in Per-Person GDP (Income): 1985 to 2023.

Specifically, from April 2019 to the end of 2023, inflation-adjusted per-person GDP, a broad measure of living standards, declined from $59,905 to $58,111 or by 3.0 per cent. This decline is exceeded only by the decline in 1989 to 1992 (-5.3 per cent) and 2008 to 2009 (-5.2 per cent). In other words, it’s the third-steepest decline in 40 years.

Moreover, the latest decline (which comprises 18 fiscal quarters) is already the second-longest in the last 40 years, surpassed only by the decline from 1989 to 1994 (which lasted 21 quarters). And if not stabilized in 2024, this decline could be the steepest and longest in four decades.

“The severity of the decline in living standards should be a wake-up call for policymakers across Canada to immediately enact fundamental policy reforms to help spur economic growth and productivity,” said Jason Clemens, study co-author and executive vice-president at the Fraser Institute.

  • Real GDP per person is a broad measure of incomes (and consequently living standards). This paper analyzes changes in quarterly per-person GDP, adjusted for inflation from 1985 through to the end of 2023, the most recent data available at the time of writing.
  • The study assesses the length (number of quarters) as well the percentage decline and the length of time required to recover the income lost during the decline.
  • Over the period covered (1985 to 2023), Canada experienced nine periods of decline and recovery in real GDP per person.
  • Of those nine periods, three (Q2 1989 to Q3 1994, Q3 2008 to Q4 2011, and Q2 2019 to Q2 2022) were most severe when comparing the length and depth of the declines along with number of quarters required for real GDP per person to recover.
  • The experience following Q2 2019 is unlike any decline and recovery since 1985 because, though per person GDP recovered for one quarter in Q2 2022, it immediately began declining again and by Q4 2023 remains below the level in Q2 2019.
  • This lack of meaningful recovery suggests that since mid-2019, Canada has experienced one of the longest and deepest declines in real GDP per person since 1985, exceeded only by the decline and recovery from Q2 1989 to Q3 1994.
  • If per-capita GDP does not recover in 2024, this period may be the longest and largest decline in per-person GDP over the last four decades.

Adobe PDF Read the Full Report

 

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Economy

Feds spend $3 million to fly 182 politicians and bureaucrats to climate conference

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From the Canadian Taxpayers Federation

Author: Ryan Thorpe 

Feds trip to COP28 in Dubai cost $3 million

The cost for Canada to send hundreds of people to COP28 in Dubai has doubled, rising to nearly $3 million, according to government records obtained by the Canadian Taxpayers Federation.

Included in those costs is $1.3 million the federal government dished out to host a “Canada Pavilion” at the summit, which featured a rapper performing a song on “climate disinformation,” while giving a shoutout to Environment Minister Steven Guilbeault.

“Nothing screams fighting climate change like flying around the world burning through jet fuel and millions of tax dollars,” said Franco Terrazzano, CTF Federal Director. “Here’s a crazy idea: maybe the feds don’t need to spend $3 million flying 182 politicians and bureaucrats to Dubai.”

The federal government paid for at least 182 people to go to COP28, held from Nov. 30 to Dec. 12, 2023, in Dubai, United Arab Emirates.

A previous report from the National Post pegged the cost for Canada’s delegation at $1.4 million.

But the bill now sits at $2,954,188, including $825,466 for transportation, $472,570 for accommodations and $295,455 for meals and incidentals, according to the records.

The records indicate the cost could rise even higher, as certain invoices and travel claims “have yet to be processed.”

Costs included $1.3 million for a “Canada Pavilion” to “showcase the breadth of Canadian climate leadership.”

At the Canada Pavilion, a Canadian rapper known as Baba Brinkman – the son of Liberal MP Joyce Murray – performed a rap on “climate disinformation.”

“Climate disinformation, get that immunization, the vaccine for bad meme infiltration,” Brinkman rapped. “Climate misinformation, it leads to polarization, which leads to radical conspiracy ideation.”

Environment Minister Steven Guilbeault also received a shoutout during Brinkman’s rap.

“Really? Hosting a rapper half-way around the world to drop rhymes at a government podium will help the environment?” Terrazzano said.

The records were released in response to an order paper question from Conservative MP Dan Mazier (Dauphin-Swan River-Neepawa).

Most of the hotel expenses came from the Dubai Marriott and the Premier Inn at the Dubai Investment Park, with rooms coming in between $150 and $400 per night.

The most expensive digs was a $816-per-night suite at the Pullman Dubai Jumeriah Lakes Towers, a “five-star hotel offering upscale accommodations.”

The Canadian delegation also handed out $650 worth of gifts during the trip.

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