In the Kansas Comprehensive Energy Plan sent to the governor, there is a requirement for a set amount of renewable energy. That’s not a great idea, as it only serves to increase the cost of power to the consumer — pretty much of an indirect tax to support operations that are not necessarily competitive.
The situation in Texas illustrates the problem. Wind is generally at a maximum when electrical demand is at a minimum (late at night) with no clear evidence that the consumer’s bills are lower from all the mandated wind capacity. If the turbines are located in the right spot, they can be economical, but government dictates badly distort the market and lead to unintended consequences.
The ethanol debacle with corn prices is a pretty good example of what can happen.
A better approach: some form of relief to build the facilities, but no ongoing direct or indirect subsidies to support day-to-day operations. That would ease the burden of paying off the debt associated with building a new plant while keeping in play the competitive forces of the marketplace.
Quotas on renewable energy are a bad idea.
Michael F. Keller