--- Tim Nuttle wrote: First question: Why is wind energy more expensive than coal energy? Is it just initial investment in building wind farms? Is it because of archaic subsidies?
Second question: If the money goes to investing in building new wind farms (as claimed on NativeEnergy.com), why not just buy stock in the sustainable energy companies instead? Or in a clean energy exchange-traded fund (ETF)? I have an aversion to just giving for-profit companies money. It seems to me that it would make more sense to invest in the companies, not just give them gifts, even if the investment doesn't make a return (in which case it would be effectively giving them a gift, I guess). --- end of quote --- Hi Tim, Here's a partial answer to your second question. Most of the higher cost of wind-generated electricity is the result of the very high capital cost versus the imperfect nature of wind energy (i.e. highest energy generation is frequently fall and spring, with winter and summer being highest loads; not to mention that no energy is generated when the wind isn't blowing). As a result, the logic of giving money to a wind company is that you are helping to provide them with the money for the capital cost so more wind farms can be built. As for why you shouldn't just buy their stock, my best guess is that in the wold of energy production (as heavily subsidized and necessarily monopolistic) investing in a company that is trying to get by by selling a product that costs more yet is exactly identical to electricity generated by a coal plant is poor investing strategy. With offsets, the Wind Company is trying to create a population of consumers who believe that electricity from wind is different than electricity from coal. That is, make sustainably produced energy a luxury good which those consumers are willing to pay more for for the added benefitts (real or perceived) of less coal and more wind. I do not think that it is viable in the long run to fool people into thinking that electricity is different so they should pay more for one kind than another. So I would advocate for massive incentives to encourage/force clean energy use (e.g. a high carbon tax). Hope you enjoy! ~Chris Farmer ___________________________________
