Those subsidies (see yesterday's post) for wind energy expired in December, yet they'll be going for another ten years: any wind business that was able to start construction by the end of 2013 will get the their ten years' worth when they are up and running.
This expiring of subsidies is as it should be. A viable business model must be able to stand on its own merits. Michael Webber, of the Energy Institute at the University of Texas, says "The wind industry is all grown up now. It’s reasonable to ask if it deserves such a big subsidy.”
Even with 36% growth in this industry during the last five years, today it only accounts for 4% of America's power. How will it fare in the future?
Turbine manufacturer Siebens took a lot of orders for windmills in December. But orders for new equipment must slow down now since there will no longer be government money to make it easier. Or, so it appears at this point, but things change. If we all knew the future, investing would be money in the bank.
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