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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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Trump threatens 50% tariffs on EU, 25% tariffs on iPhones

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From The Center Square

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President Donald Trump threatened fresh tariffs on the European Union and iPhone maker Apple on Friday, prompting a sell-off on Wall Street.

Trump said trade talks with the European Union, which represents 27 nations, are “going nowhere.” The president said he was recommending a 50% tariff on imported goods from the EU starting June 1.

“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump wrote on Truth Social. “Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable.”

The U.S. is the EU’s largest trading partner, buying 21% of the block’s exports, according to EU data.

Trump announced a slate of higher reciprocal tariffs on dozens of nations April 2. Seven days later, he suspended those higher rates for 90 days to give his trade team time to make deals. Since then, Trump signed two deals, a starter deal with the United Kingdom and temporary truce with China. The president has kept a 10% baseline tariff on all imports as talks continue. Goods from China face 30% import duties.

Trump said Friday that talks with the EU had stalled.

“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” he wrote on Truth Social. “There is no Tariff if the product is built or manufactured in the United States.”

Trump also threatened 25% tariffs on Apple, calling out the company’s CEO in a Truth Social post.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

Trump has made tariffs the centerpiece of his foreign policy agenda during his second term. His on-again, off-again approach has frequently sent markets up and down with little notice, to the chagrin of those looking for stability in stocks.

Some business groups, including the U.S. Chamber of Commerce, have asked Trump to avoid tariff threats and work toward more free-trade agreements.

Trump’s focus on tariffs comes after years of inflation that frustrated American consumers and helped bring Trump back to the White for a second term. However, economists have warned that tariffs could push up prices for consumers.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.

A tariff is a tax on imported goods. The importer pays the tax and can either absorb the cost or pass the cost on to consumers through higher prices.

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New fiscal approach necessary to reduce Ottawa’s mountain of debt

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From the Fraser Institute

By Jake Fuss and Grady Munro

Apparently, despite a few days of conflicting statements from the government, the Carney government now plans to table a budget in the fall. If the new prime minister wants to reduce Ottawa’s massive debt burden, which Canadians ultimately bear, he must begin to work now to reduce spending.

According to the federal government’s latest projections, from 2014/15 to 2024/25 total federal debt is expected to double from $1.1 trillion to a projected $2.2 trillion. That means $13,699 in new federal debt for every Canadian (after adjusting for inflation). In addition, from 2020 to 2023, the Trudeau government recorded the four highest years of total federal debt per person (inflation-adjusted) in Canadian history.

How did this happen?

From 2018 to 2023, the government recorded the six highest levels of program spending (inflation-adjusted, on a per-person basis) in Canadian history—even after excluding emergency spending during COVID. Consequently, in 2024/25 Ottawa will run its tenth consecutive budget deficit since 2014/15.

Of course, Canadians bear the burden of this free-spending approach. For example, over the last several years federal debt interest payments have more than doubled to an expected $53.7 billion this year. That’s more than the government plans to spend on health-care transfers to the provinces. And it’s money unavailable for programs including social services.

In the longer term, government debt accumulation can limit economic growth by pushing up interest rates. Why? Because governments compete with individuals, families and businesses for the savings available for borrowing, and this competition puts upward pressure on interest rates. Higher interest rates deter private investment in the Canadian economy—a necessary ingredient for economic growth—and hurt Canadian living standards.

Given these costs, the Carney government should take a new approach to fiscal policy and begin reducing Ottawa’s mountain of debt.

According to both history and research, the most effective and least economically harmful way to achieve this is to reduce government spending and balance the budget, as opposed to raising taxes. While this approach requires tough decisions, which may be politically unpopular in some quarters, worthwhile goals are rarely easy and the long-term gain will exceed the short-term pain. Indeed, a recent study by Canadian economist Bev Dahlby found the long-term economic benefits of a 12-percentage point reduction in debt (as a share of GDP) substantially outweighs the short-term costs.

Unfortunately, while Canadians must wait until the fall for a federal budget, the Carney government’s election platform promises to add—not subtract—from Ottawa’s mountain of debt and from 2025/26 to 2028/29 run annual deficits every year of at least $47.8 billion. In total, these planned deficits represent $224.8 billion in new government debt over the next four years, and there’s currently no plan to balance the budget. This represents a continuation of the Trudeau government’s approach to rack up debt and behave irresponsibly with federal finances.

With a new government on Parliament Hill, now is the time for federal policymakers to pursue the long-ignored imperative of reducing government debt. Clearly, if the Carney government wants to prioritize debt reduction, it must rethink its fiscal plan and avoid repeating the same mistakes of its predecessor.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute

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