Now that the hysteria for renewables has been dampened by the financial crisis, government will face the choice to back off the high-sounding campaign rhetoric by McCain and Obama or attempt to 'mandate' renewable energy development. And if he (the winner) holds to his plan, where will the capital come from? As I posted yesterday, Presidents are not in control of the economy no matter what they or people may think.
A higher % of renewables, now at 7% in the U.S., may be warranted if economic realities justify expansion, but some renewable projects, like corn to ethanol for gasoline, deserve to die.
Here in Vermont, Democrat candidate for Governor Symington proposes 20% of Vermont's electricity from wind within 10 years, presumably from in-state wind turbine farms. For that dream to become reality, I suggest she must take the next step and support Vermont exercising a right of eminent domain to take the land and build the roads that will be needed for such a massive projectin Vermont (200-250 400' turbines). That little piece of reality seems to be missing from her energy proposal. Ah well, her dreams are now confronting reality as capital dries up for massive wind projects, at least temporarily.
While I haven't been watching TV closely, have Mr. T. Boone Pickens' ads for BIG WIND to replace natural gas for electricity also dried up? Perhpas reality affects billionaires, too.
"Wall Street analysts say most utilities and other builders can profitably choose big wind projects over gas-fired plants only when gas prices are $8 per thousand cubic feet or higher. Natural gas settled Monday at about $6.79 per thousand cubic feet, down from about $13.58 on July 3.
“Natural gas at $6 makes wind look like a questionable idea and solar power unfathomably expensive,” said Kevin Book, a senior vice president at FBR Capital Markets.
Government mandates already on the books, including state rules requiring renewable power generation and federal requirements for production of ethanol, ensure that to some degree, alternative energy markets will continue to exist no matter how low oil and gas prices go. But the credit crisis means some companies that would like to build facilities to meet that demand are going to have problems. “If you can’t borrow money, you can’t develop renewables,” Mr. Book said."
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