Wind Producers Getting Paid to not Produce [View all]

[Judi Lynn]

Wind Producers Getting Paid to not Produce
By Holbert Janson
March 7, 2012

It must be a difficult thing to watch for Texas electricity grid operators who will be struggling to generate enough electricity to meet demand this summer but wind energy producers in the North West are being paid to not generate power. Critics of green energy policy are decrying the situation that is seeing tax payer money used to pay producers to not generate electricity from the facilities that were built partially with the help of subsidies to begin with.

There are a number of subtexts in this story. Aside from green energy policy critics the move is also drawing the ire of green energy proponents who feel it’s setting a bad precedence.

Wind output in Texas is also booming with production in February up considerably thanks largely to ideal conditions. Texas electric companies usually provide green rate plan options that allows consumers to specifically select electricity produced from renewable sources. The distinction may not be as meaningful these days, though ,as the Texas grid needs every bit of output it can get as grid operators have warned the grid might not be able to keep pace with demand.

The fact that this capacity has to be turned down once again highlights a major hurtle that must be overcome before wind and solar can become cornerstones of the U.S. energy mix. The unpredictability of output from wind power means that effective new storage technologies are a must.

http://www.renewableenergyworld.com/rea/blog/post/2012/03/wind-producers-getting-paid-to-not-produce