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Economy
Taxpayer-Funded Wind Farms Prompt Concern from Democrats and Republicans; Jobs for China?
2009-12-29
(CNSNews.com) -- Wind-power projects funded in part by the $787-billion Recovery Act (stimulus law) are coming under scrutiny at a time when President Obama and other Democrats have promoted alternative forms of energy production.

Two New York Democrats -- Sen. Chuck Schumer and Rep. Eric Massa -- are among the lawmakers criticizing specific wind-power projects that are getting hundreds of millions in taxpayer subsidies.

A "definitive agreement" was reached on one of those projects two weeks ago, according to a Dec. 20 news release from the Austin, Texas-based Cielo Wind Power. The deal is between Cielo, U.S. Renewable Energy Group and China-based Shenyang Power Group.

The $1.5 billion project -- which is getting $450 million in stimulus funds -- is supposed to create 2,000 to 3,000 jobs. The problem is, most of those jobs will be in China, Sen. Schumer said, because that's where the wind turbines will be constructed. Another 300 temporary jobs will be created in Texas.

"I'm all for investing in clean energy, but we should be investing in the United States, not China," Schumer wrote in a Nov. 5 letter to Energy Secretary Steven Chu. "The goal of the stimulus was to spur job creation here, not overseas. This project should not receive a dime of stimulus funds unless it relies on U.S.-manufactured products," the senator wrote.

The Cielo wind farm in West Texas is supposed to cover 36,000 acres and generate enough electricity to power up to 180,000 American homes each year.

Cielo Wind Power President Walt Hornaday, in a Nov. 10 statement, insisted that the project will grow the U.S. economy and would not be possible without federal assistance.

"A project of this scale will not only create hundreds of on-site construction and operational jobs, but it will also benefit a network of engineers, suppliers, and contractors all around the U.S. who will see hundreds of millions of dollars in additional work," Hornaday said.

"Cielo plans to draw on the same American contractors from North Dakota to New York and New Mexico to California who have contributed to its past 10 wind projects. This planned project is an economic development lifeline to the wind industry during tough economic times."

Hornaday did not deny Schumer's assertions that most of the jobs would be created in China. However, a Cielo staff member told CNSNews.com last week that none of the stimulus funds (taxpayer money) would be used to pay workers in China. However, the spokesman declined to say any more about the project than has already been discussed in news releases.
Posted by:Fred

#7  ION TOPIX > GLOBAL WARMING WILL NOT PREVENT NEW ICE AGE.

ARTIC > IIUC, Warming-induced rise in global temps by 5-degrees Celsius will destroy most iff not all of Humanity before the inevitable formation of any new glacial ice sheets???

* RENSE > BILLIONTH AFRICAN BORN: POPULATION TO DOUBLE IN 40 YEARS [1.9BILYUHN Africans by 2050].
Posted by: JosephMendiola   2009-12-29 23:11  

#6  It always seemed strange to build giant windmill farms and then ship huge amounts of electricity to far away. Back in the heyday of hydroelectric, big electricity consumers were built near the electricity - Oak Ridge nuclear separation and Alcoa aluminum refining were sited to take advantage of TVA electricity, for instance - a government distortion, but at least a rational one.)
Pickens' wind farms and natural gas fields are the same land in and near west Texas - build a plant to use electricity to modify natural gas into synthetic diesel, maybe.
Instead we use government intervention to distort the economic process beyond any rational expression. But somebody is getting rich at our expense.
Posted by: Glenmore   2009-12-29 13:05  

#5  I saw Pickens the other day on one of the business channels. He was pushing natural gas as the savior of the future.

He had nothing to say about windmills.

I thought that was a bit strange.

Not.
Posted by: Kelly   2009-12-29 12:54  

#4  Maybe Obama has figured that he can talk sustainability and just shrug when his constituents stall his plans?

I think you're on to something, Karl. In fact, I think we've seen that show before.
Posted by: Bobby   2009-12-29 11:59  

#3  Don't forget the environazis will almost immediately try to shut down the wind farms because they threaten migratory birds.

They did the same thing to the big wind farm in the Altamonte pass near SFO. Huge wind farm, lots of power for the nasty capitalists in Silicone Valley, shut down the Rancho Seco nuclear power plant in return. Then they go to the 9th Circus Court of Appeals and get an order shutting everything down.

Does Pickens really think he can get those power lines built? Does he really think the environmental movement is serious about sustainable power? There is a butterfly, frog or clam out there somewhere lurking, to be used to shut it all down.

Will the Obama monarchy allow the environazis to stall, shut down or spike this or any other move to sustainable power? Especially since the Obama Monarchy is throwing such huge sums of money at it? Or is Schumer's little investigation actually a environazi instigated ploy to stop the entire thing before it gets off the ground and real money is spent? Maybe Obama has figured that he can talk sustainability and just shrug when his constituents stall his plans?
Posted by: Karl Rove   2009-12-29 10:55  

#2  It is also that the modern designs and manufacturing technology are shipped wholesale to China. Then the $200/month wages come into play.

So this project is $1.5B is expected to average 180MW (30% of the 600MW nameplate) with taxpayers forced to give a private citizen $450M.

Another way to look at that $450M is 1.4¢ taxpayer subsidy for every kWH produced over the 20 year life of the wind turbines. Then there is the 2¢ Fed production subsidy for every kWH. Plus there is accelerated depreciation where wind power investors get to write off their capital investment in only 5 years vs 20, so another .5¢/kWH. That comes to 3.9¢ taxpayer subsidy for every kWH produced. Compare that with the Texas wholesale electricity price of 3¢/kWH.


Another way to look at this is the 3.9¢/kWH forced taxpayer subsidy comes to $1.25 billion over the 20 years life of this wind turbine project. So in effect T. Boone is risking $250M for an income of $946 million. Pretty damn sweet and a total ripoff of the taxpayers.

More bad news for the taxpayers, T. Boone will force the taxpayers to build him new power lines from Bumfuck, TX to the urban markets for XXX hundreds of millions. And because of the unpredictable nature of wind, 90% of the wind project's capacity will have to be backed up by natural gas power plants that will have to be spinning and using energy, but not producing power. That cost will be reflected in every Texans electric rate as additional spinning reserve. So basically, we talking about 7-8¢ for every kWH produced of which only 3¢/kWH actually comes from the electric ratepayer, the rest from taxpayers.

Mo Money! picked from the taxpayer pockets. And this is just one example of thousands of feeding frenzies from the politically connected that is sinking this Republic.
Posted by: ed   2009-12-29 10:21  

#1  Hard to believe I actually kind of agree with Schumer. The unfortunate thing is that we don't seem to be able to manufacture cost and quality competitive turbines in this country anymore. Why not? I don't think they're all that labor intensive so those cheap Chinese workers shouldn't be the whole story.
Posted by: Glenmore   2009-12-29 08:09  

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