Quote of the week- the recasting of the argument begins

qotw_cropped

Every once in awhile a window opens and shows us the dark, illogical souls of the bureaucrats in the climate cabal. This is one of those times.

Regardless of whether or not scientists are wrong on global warming, the European Union is pursuing the correct energy policies even if they lead to higher prices, Europe’s climate commissioner has said.

There’s more.

Let’s say that science, some decades from now, said ‘we were wrong, it was not about climate’, would it not in any case have been good to do many of things you have to do in order to combat climate change?.

These are the views of the EU climate commissioner, Connie Hedegaard.

Read it all here: http://www.telegraph.co.uk/earth/environment/climatechange/10313261/EU-policy-on-climate-change-is-right-even-if-science-was-wrong-says-commissioner.html

h/t to Dennis Wingo, and many others.

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rogerknights
September 17, 2013 5:31 pm

Here are some posts from the past (on WUWT) wrt subsidies:
================

HaroldW says:
June 22, 2010 at 10:33 am
there are some subsidies, but they are actually really small.
1: royalties paid to foreign countries and states are credited for tax purposes…. as it should be.
if you paid for raw material, it has be considered as expense.
2: research credit that is available to ALL INDUSTRIES is available to oil&gas. there is nothing special here.
3: govt pays poor people for heat. that is welfare. not a subsidy to oil&gas. That money can be used for electric heat, even if it is hydro electric or other “renewable” source.
4: investment credits available to everyone is available to oil&gas. where is the subsidy there?
——————
Jeremy says:
September 26, 2011 at 12:00 pm
U.S. Sen. Charles Schumer, D-N.Y., is proposing to end what he says are $4 billion a year in tax subsidies to the biggest oil companies.”
Firstly, all Oil Companies pay taxes on earnings just like any corporation. According to data found in the Standard & Poor’s Compustat North American Database, the industry’s 2009 net income tax expenses — essentially their effective marginal income tax rate — averaged 41 percent, compared to 26 percent for the S&P Industrial companies. The Energy Information Administration (EIA) concludes that, as an additional part of their tax obligation, the major energy-producing companies paid or incurred over $280 billion of income tax expenses between 2006 and 2008.
http://dailycaller.com/2011/04/25/the-truth-about-americas-oil-gas-companies-part-i/ .
Secondly, according to the ONRR, annual revenues from federal onshore and offshore (OCS) mineral leases are one of the federal government’s largest sources of non-tax revenue. In 2010, Royalty Revenue amounted to around $8 Billion
http://www.onrr.gov/
————–
Luke says:
September 26, 2011 at 10:44 am
Most of those $4.0 billion in “subsidies” are not specific to the oil & gas industry. They break down as follows:
$1.7 billion in Domestic Manufacturing Credits: Applies to all production companies equally. A reward for creating/leaving the jobs in the US economy. You can argue whether or not they can move this production from the US, since the oil is located here, but it is clear that they can move the exploration equipment to anywhere in the world and ship the oil in. There is no requirement that oil used domestically must be produced in the US. So given that, what other industries should we strip this credit from?
$1.0 billion in % depletion allowance: Applies specifically to the oil and gas industry as a mechanism for capital recovery. It takes the place of depreciating the assets in the ground. Of course we don’t like to talk about the dark side of this one, which is when oil prices are lower for a sustained period of time, it acts like an anti-subsidy, so this one can cut both ways and at time has. Easy solution is to use capital base instead of income. Over the long haul though, I doubt this equals $1.0 billion a year. Just $1.0 billion a year in the current price environment.
$0.9 billion in foreign tax credit: This one again, applies equally to all. The dodgy part with this is classification of royalty payments as income taxes. Some foreign governments have converted royalty payments to income taxes, allowing for greater deductibility under US tax law. This, however, is not unique to the oil industry. So again, who else would you like to strip this one from?
$0.8 billion in intangible drilling costs: This one is specific to the oil and gas industry. This however is not a subsidy. Period. Exclamation Point! At best, this is a shifting of tax payments to later years. It allows the oil company to deduct their exploration expenses immediately. When this rule was enacted, it actually made sense because 90% of those expenses were written off in the first year anyway because of the abysmal hit rate for new wells, as opposed to the alternative which is adding it to the depreciation base for a new well. Now that the hit rate is much better, maybe it’s time to rethink the break, but it will not provide an $0.8 billion dollar annual windfall. It might provided a short term difference, but after 4-5 years under the new rules, you’d be pretty much back to the same annual number for “tax breaks” resulting from intangible drilling costs.
—————–
chris y says:
September 26, 2011 at 9:31 am
“U.S. Sen. Charles Schumer, D-N.Y., is proposing to end what he says are $4 billion a year in tax subsidies to the biggest oil companies.”
That $4B amounts to 1.6 cents per gallon of gasoline.
Did Schumer also propose an end to Federal, state and local gasoline taxes to ‘even the playing field’?
Did Schumer also propose an equivalent tax on solar and wind energy to ‘even the playing field?’
—————
Catcracking says:
December 3, 2011 at 7:20 am
One favorites of Pelosi is the reduction in royalities that was set up during the Clinton Administration to give companies an incentive to drill in deep water offshore in the Gulf when oil prices were low. Royalities are still paid but circa 20 % less. It was a good business deal for both sides at the time and improved for the drillers as oil prices rose. So now many of the tax and spend crowd want to change the contract and threaten those who refuse to comply with blackballing them from biding on new leases. How else can they make renewable energy sources look competitive?
Another item frequently referenced is the accelerated write off of capital expenses to encourage investment and boost the economy that is offered to every other business.
A third item is the foreign tax credits offered to all companies that bring foreign earnings back to the US.
—————
Janice says:
December 3, 2011 at 7:36 am
There is a hidden subsidy for both solar and wind power, one that could easily be avoided, but never will be because it is not politically expedient. The subsidy is the amount of money it takes to remove solar and wind farms once the parent company abandons them. It usually winds up being public money that is used, since the parent companies usually go bankrupt and are dissolved. It could easily be avoided if the parent companies were forced to post a bond equal to the amount it would take to remove the equipment, and restore the area. And that is a subsidy which coal and oil do not enjoy, because they are forced to remediate their mining and drilling sites.
Roy UK says:
December 5, 2012 at 8:33 am
@Alexandre 7.47am
Statement before the Senate Finance Committee
Subcommittee on Energy, Natural Resources, and Infrastructure March 27, 2012
FY2010 Electricity Production Subsidies and Support per megawatt-hour
(year 2010 dollars)
Natural Gas, Petroleum Liquids 0.63
Coal (pulverized) 0.64
Hydroelectric 0.84
Biomass 2.00
Nuclear 3.10
Geothermal 12.50
Wind 52.48
Solar 968.00
So subsidies per MWh to Wind and Solar are 100 – 1500 times the cost of subsidies to the Big oil. You didn’t really think your question through did you?
Steve Keohane says:
December 5, 2012 at 8:38 am
Alexandre says:December 5, 2012 at 7:47 am
I’d like to know where the Heartland Institute stands in the issue of fossil fuel subsidies. You know, being non-Big Oil and all…

According to the link you provided $58B was paid globally in so called oil subsidies. In 2004, according to energy.gov, we in the USA used 140 billion gallons of gasoline, for which $70B in taxes at the pump was collected. And don’t for get the corporate tax on the wholesale sales, and the taxes paid by the oil employees to make the gasoline, etc. So where is the subsidy? Your so-called oil subsidies are smoke and mirrors, nothing more.
John M says:
December 5, 2012 at 9:11 am
Steve Keohane says:
December 5, 2012 at 8:38 am
Regarding the whining about fossil fuel “subsidies”, it would be interesting to see Alexendre’s opinion on these “subsidies” listed in his source:
Low-Income Home Energy Assistance Program (Petroleum) : 336 Million
Fuel-Tax Exemptions for Farmers: 1 Billion (that’s a B)
Strategic Petroleum Reserves: 1 Billion (Hell, the way that one’s been used, it should be charged back to the DNC as a campaign contribution)
Low-Income Home Energy Assistance Program (Nat Gas): 1.7 Billion (that’s a B too)
Credit for Investment in Clean-Coal Facilities: 370 Million
Amortisation of Certain Pollution-Control Facilities: 200 Million
Jeez, maybe they ought to count food stamps as a fossil fuel subsidy too, since they are used to buy food produced by those farmers who get those huge Fossil Fuel tax exemptions, or allow poor people to spend more to fill their tanks.
Mario Lento says:
December 6, 2012 at 3:17 pm
I found this goldmine of information on total subsidies. Does anyone have any comments on the validity of it? I could not connect to some of the links to the source references.

http://www.instituteforenergyresearch.org/hardfacts-uploads/NJI_IER_HardFacts_ALLpages_20120423_v8.pdf
[hard-headed, anti-green, 73 pages, not much on subsidies per se

milodonharlani
September 17, 2013 5:37 pm

PS:
As many here must know, Moore was featured in the Great Global Warming Swindle:

RACookPE1978
Editor
September 17, 2013 6:30 pm

Roger: Adding to your previous (and very thorough) comments about the “subsidies” so bitterly complained by those who favor $100 billion in direct payoff’s to such demnocrat party bribers (er, campaign donors) as Solendra, GM (for the Volt and its electric cars tax writeoff’s and subsidized chargers and parking and …), BP (solar panels), etc, etc, etc…..

Statement before the Senate Finance Committee
Subcommittee on Energy, Natural Resources, and Infrastructure March 27, 2012
FY2010 Electricity Production Subsidies and Support per megawatt-hour
(year 2010 dollars)
Natural Gas, Petroleum Liquids 0.63
Coal (pulverized) 0.64
Hydroelectric 0.84
Biomass 2.00
Nuclear 3.10
Geothermal 12.50
Wind 52.48
Solar 968.00

So: for those subsided prices to democratic party donors, how much power do they generate?
Well, wind, in general worldwide, only creates 23% of its rated power. On average. So less than 1/4 of the SUBSIDIZED (rated or nameplate) power capacity is available at unpredictable times and for uncertain durations, but ALL of the subsided extra transmission lines, switchyards, transformers, controller, roads, foundations, and infrastructure must be paid for by the taxpayers and ratepayers. ALL of those resources are wasted monies – good only for donations for democrat party officials How’s that working for for anyone except democratic party officials getting their campaign donations from the wind and solar industries?
Physically, wind cannot generate power over more than 1/3 of the country due to routine weather features like the southeast United States’ “Bermuda high” – where for weeks on end, breezes average less than 5 knots. There simply is no power available to turn the windmills over too many regions. Do you want to build the grid and transmission lines to carry current wastefully too far? More wasted resources and wasted monies.
Oh – The last short power line to cross state lines required over 10 years of permitting delays by the environmental-ecological industry for less than 300 miles of new lines. 300 miles won’t even get ONE set of power lines from a region with no wind to a region with no-wind-today-but-maybe-some-tomorrow-but-the-power-is-not-needed-there-either. Build the windmills? Are you going to let us build the towers to carry their product too?
Solar? The most expense of all, and capable of generating power only 6 hours a day – ON those days of the year when the sun actually IS shining! The rest of the time? The sun is too low in the sky to create power needed, and – when the sun IS shining at those peak solar hours – the power generated is not at peak power demand hours. But the fossil turbines must keep turning, ready to be instantly brought up the speed and on load, because the solar plants turn on an doff erratically and catastrophically at irregular hours – as when the sun goes behind a cloud each minute. Each hour.. . each half-hour. Or it does not.

SideShowBob
September 17, 2013 7:18 pm

kadaka (KD Knoebel) says:
September 17, 2013 at 5:05 pm
Projections of future costs have already been done by the US Energy Information Administration (EIA), as can be found here: Levelized Cost of New Generation Resources in the Annual Energy Outlook 2013. Full AEO report (Early Release) here.
So by your stats in the US wind is cheaper than coal and much cheaper than advanced coal, solar PV is cheaper than advanced coal (just), and what exactly are you trying to say with those figures? That renewable are now cheaper than advanced coal? Gas is cheaper still and should rightly be part of the mix, but is subject to fuel price fluctuations…
But the bigger point I’m not sure how you guys keep missing/ignoring is that the historic price for coal is going up and price for renewable is going down, I’m not sure when that study was done but the price for solar PV fell 23% over the last 12Months
http://reneweconomy.com.au/2013/graph-of-the-day-big-solar-costs-fall-23-in-12-months-21407
so that study might already be out of date ! That’s the point you’re missing, renewables are getting cheaper and cheaper while fossil fuels are getting more expensive, the writing is on the wall you just have to have the courage to read it.
As for intermittency these issue will be solved, through a combination of more gas plants, and smarter load matching, the Germans as a lot more intermittent renewables in the mix and have plans for a lot more.

Greg Cavanagh
September 17, 2013 7:22 pm

Lets apply this logic to Iraq.
Even if we were wrong on WMD, we were right to go to war with Saddum.

richardscourtney
September 18, 2013 1:14 am

SideShowBob:
In reply to the data provided by kadaka (KD Knoebel) at September 17, 2013 at 5:05 pm, your post at September 17, 2013 at 7:18 pm asks/says

So by your stats in the US wind is cheaper than coal and much cheaper than advanced coal, solar PV is cheaper than advanced coal (just), and what exactly are you trying to say with those figures? That renewable are now cheaper than advanced coal? Gas is cheaper still and should rightly be part of the mix, but is subject to fuel price fluctuations…

No! Like all fronts for subsidy farms, you deliberately miss the point and select only the data which fits your carnival barking.
In his post kadaka (KD Knoebel) explained

Since solar and wind are there when they’re there and not necessarily there when you need them, they are non-dispatchable, and really shouldn’t be compared to dependable sources like coal, nuclear, and natural gas.

And, importantly, he said

Plus something in the math conflicts with reality.

The levelized cost shown for each utility-scale generation technology in the tables in this discussion are calculated based on a 30-year cost recovery period, using a real after tax weighted average cost of capital (WACC) of 6.6 percent. In reality, the cost recovery period and cost of capital can vary by technology and project type.

Namely, where are the wind farms that last 30 years without turbine replacement? It hasn’t been happening. Thus turbine replacement also needs to be figured in, you’ll have to practically rebuild the installation at least once.
Don’t forget the cost of backup generation.
It also turns out there are additional costs added into coal, as in a carbon tax{
{snip}

And in his post kadaka (KD Knoebel) repeatedly – i.e. again and again – said

all solar is lousy

Plus he reported much more.
In other words, you have deliberately misrepresented the post of kadaka (KD Knoebel) which provided a detailed explanation of how and why figures you have been asserting are untrue and misleading
Furthermore, you have completely ignored the post of rogerknights at September 17, 2013 at 5:31 pm which details subsidies to ‘renewables’ and fossil fuelled power.
You are trying to present a ridiculous sales pitch for expensive, polluting environmentally damaging, bird swatting subsidy farms. That probably works on AGW-scare sites which are only frequented by the ignorant and gullible. It does not wash here on WUWT where there people willing and able to check your ludicrous assertions.
Richard

kadaka (KD Knoebel)
September 18, 2013 1:16 am

From SideShowBob on September 17, 2013 at 7:18 pm:

But the bigger point I’m not sure how you guys keep missing/ignoring is that the historic price for coal is going up and price for renewable is going down, I’m not sure when that study was done but the price for solar PV fell 23% over the last 12Months

The solar price fell from the influx of cheaper Chinese-made solar panels, coupled with lower demand as the subsidies started drying up, which lead to the collapse of many US panel makers and a glut of panels on the market. The decrease is not sustainable.
http://www.renewableenergyworld.com/rea/news/article/2013/03/solar-pv-profits-last-stand

Solar PV Profit’s Last Stand
Paula Mints, SPV Market Research/Strategies Unlimited
March 20, 2013 | 39 Comments
(links)
Globally, average module prices (ASPs) decreased by 42 percent in 2012 from a global ASP of $1.37/Wp in 2011 to $0.79/Wp in 2012. In early 2013, ASPs have already decreased by 18 percent to $0.65/Wp with inventory averages ~$-.58/Wp. Many will proclaim this as progress. Some will say that the ends justify the means. A few will devote a brief paragraph to the losses and failures of manufacturers before going on to write of the hugely successful 2013 to come. Some manufacturers may join the chorus lest they be drowned out by drumbeats broadcasting success.
Simply put, a 42 percent decrease in price in one year is not progress by any logical assessment of it, nor is it representative of true learning. The PV industry leapt off of the learning curve several years ago caught up in pricing for share that has turned into a nightmare. Should prices decrease by 42 percent in 2013 the ASP will decrease to $0.46/Wp. Logically it would be difficult to make an argument that prices this low relate in any meaningful way to cost — yet, some will make this argument. (…)

Market theories of pricing are useful to provide a framework for the behavior exhibited by participants in a market. Unfortunately, these theories are often used to justify opinion at the same time ignoring details such as the availability of substitutes, the macro and micro economic environment in which the behavior exists as well as the constraints in which the market operates. In the case of PV, electricity is viewed as a basic need and so utilities and others take seriously the need to provide it at as low a cost to the consumer as possible.
Every entity along the energy value chain will try and maximize self-interest, including the need for positive margins and profits. Pitting self-interest against self-interest typically reveals passionate explanations as to why each side has merit over the other. Arguments for continued low cell/module pricing are shored up by saying that the point is to get more PV installed — basically, the ends justify the means. Though the evidence is now quite clear that current PV module prices do not support continued R&D or positive margins the facts become blurry in the face of high deployment figures. An industry wherein only one side or another makes a profit at any given time cannot be described as healthy. Figure 2 offers data on PV manufacturer revenues and losses in 2012.

Figure 2 summary, all eight manufacturers have net losses.
The solar PV industry is busy failing by success.

A few PV cell/module manufacturers have stalled price reductions and in several cases are trying to increase prices by $0.02/Wp to $0.05/Wp. Given current high levels of inventories (in some cases including modules that were bought for failed projects) manufacturers are competing with their own modules. Some installers/system integrators agree that current price levels are not healthy for manufacturers. Nonetheless most buyers will hold the line against price increases in what has historically been a market where buyers control the price function.

The panel makers are not making money, the panel buyers don’t want to pay more, inventories are high. There will be bankruptcies, mergers and acquisitions, and otherwise a shrinkage of manufacturing capacity until it meets demand. At which point prices might go up into profitability, but with subsidies going away, most likely the makers will have to trim costs to get to net gains, if that’s even possible.
You are praising the ongoing fire sale prices without mentioning the ongoing fires.

richardscourtney
September 18, 2013 1:29 am

SideShowBob:
In your ridiculous sales pitch at September 17, 2013 at 7:18 pm you also say

But the bigger point I’m not sure how you guys keep missing/ignoring is that the historic price for coal is going up and price for renewable is going down, I’m not sure when that study was done but the price for solar PV fell 23% over the last 12Months

NO! ABSOLUTELY NOT! HOW DARE YOU!?
You are “ignoring” that your fallacious and misleading point has been repeatedly refuted in this thread by several people. Indeed, my refutation of it was my first answer to your twaddle. And the conclusion of that refutation was quoted by two others later in the thread. It is at September 17, 2013 at 3:32 am and this link jumps to it
http://wattsupwiththat.com/2013/09/17/quote-of-the-week-the-recasting-of-the-argument-begins/#comment-1419170
Also, in addition to your pretence that your untrue assertion has been “ignored”, you have “ignored” (i.e. have failed to mention) my rebuttal of wicked and amoral assertions you made by implication. That rebuttal is at September 17, 2013 at 4:14 pm and this link jumps to it
http://wattsupwiththat.com/2013/09/17/quote-of-the-week-the-recasting-of-the-argument-begins/#comment-1419776
It is nearing the point where you need to apologise for your behaviour.
Richard

SideShowBob
September 18, 2013 1:53 am

richardscourtney says:
September 18, 2013 at 1:29 am
NO! ABSOLUTELY NOT! HOW DARE YOU!?
You are “ignoring” that your fallacious and misleading point has been repeatedly refuted in this thread by several people. Indeed, my refutation of it was my first answer to your twaddle. And the conclusion of that refutation was quoted by two others later in the thread. It is at September 17, 2013 at 3:32 am and this link jumps to it
http://wattsupwiththat.com/2013/09/17/quote-of-the-week-the-recasting-of-the-argument-begins/#comment-1419170
What the hell are you talking about? Are you talking about your airy fairy drivel about how all energy is free and how nature has collected it for us! You call this “proof” ? I give you statistics from reputable organizations that have done the costings and you this give this fluff and call it “proof” – And then chastise me for not responding to it ???

SideShowBob
September 18, 2013 1:57 am

richardscourtney says:
September 17, 2013 at 4:14 pm
“The fossil fuel industries have lowered tax burdens. If you want to call that a “subsidy” then feel free, but wind and solar cost at least 5 times as much and get actual subsidies.”
Yes I call it a subsidy, it come from tax payers doe it not, and yes fossil fuel have historically been granted more subsidies than renewable, as I pointed out in a link, but feel free to ignore that point…
“The use of fossil fuels has done more to benefit human kind than anything else since the invention of agriculture. This is because it has released us from the energy poverty of wind, solar and muscle (animal and slave) power. Human health, life expectancy and leisure have all increased with resulting increase to art, philosophy and knowledge. And the environment has benefited enormously. ”
Who’s denying that, I’m not, I’m just point out that renewable’s are fast becoming much cheaper than coal ..

Reply to  SideShowBob
September 18, 2013 9:59 am

@Sideshow – No. It does not come from tax payers. All TAXES do. But NOT paying taxes is not a charge to anyone else. Period. It is not a subsidy. period. Here is the dictionary Definition:

money given by government: a grant or gift of money from a government to a private company, organization, or charity to help it to function

The only way it is a cost to taxpayer is if ALL MONEY belongs to the government, of which they allow you to keep some. That is true in communistic countries. But not in the rest of the world.

SideShowBob
September 18, 2013 1:59 am

richardscourtney says:
September 18, 2013 at 1:14 am
“In other words, you have deliberately misrepresented the post of kadaka (KD Knoebel) which provided a detailed explanation of how and why figures you have been asserting are untrue and misleading”
Well if you think that then anyone can look at the study that Kadaka linked to and draw their own conclusions

SideShowBob
September 18, 2013 2:08 am

kadaka (KD Knoebel) says:
September 18, 2013 at 1:16 am
“The solar PV industry is busy failing … ”
Boy that’s a courageous call, I think solar PV is here to stay and is only going to get bigger globally… we’ll see who’s right in 10-20 years, my prediction is that coal and petrol cars will be all but phased out, while wind, hydro, solar, gas peaking plants and electric cars will dominate.

September 18, 2013 2:19 am

I have published the following information since about 2005.
The “Capacity Factor” of wind power is about 20%, depending upon location, but wind power is actually much LESS EFFICIENT than this.
The “Substitution Factor” of grid-connected wind power is often less than 10% – for example is projected to be less than 4% in Germany by 2020.
That means Germany will need 25 units of wind power to replace one unit of conventional electrical generation by 2020.
Bob, maybe you can understand this:
“Wind Power – It doesn’t just blow; it sucks!”
http://wattsupwiththat.com/2012/05/12/newsbytes-germany-faces-green-energy-crisis/#comment-983628
E.On Netz, the largest wind power generator in the world, in their report “Wind Power 2005″ describes the problems.
http://www.wind-watch.org/documents/wp-content/uploads/eonwindreport2005.pdf
One of the greatest disadvantages of wind power is the need for almost 100% conventional backup. E.On Netz says the “substitution capacity” in Germany was 8% in 2003, and will drop to 4% by 2020. See Figure 7 in the E.On report.
In concrete terms, this means that in 2020,
with a forecast wind power capacity of over
48,000MW (Source: dena grid study), 2,000MW of
traditional power production can be replaced by
these wind farms.
Another big problem with wind power is that power varies as the cube of the wind speed – this causes sharp peaks and valleys in the power output from wind farms, so extreme that it can cause the entire grid to crash – try that in winter – remember the 1998 Ontario-Quebec ice storm? Many people died as a direct result of this huge power failure.
A near-miss occurred in German during Christmas week of 2004 – see Fig. 6 in the E.on report.
The feed-in capacity can change frequently
within a few hours. This is shown in FIGURE 6,
which reproduces the course of wind power feedin
during the Christmas week from 20 to 26
December 2004.
Whilst wind power feed-in at 9.15am on
Christmas Eve reached its maximum for the year
at 6,024MW, it fell to below 2,000MW within only
10 hours, a difference of over 4,000MW. This corresponds
to the capacity of 8 x 500MW coal fired
power station blocks. On Boxing Day, wind power
feed-in in the E.ON grid fell to below 40MW.
Handling such significant differences in feed-in
levels poses a major challenge to grid operators.

richardscourtney
September 18, 2013 2:51 am

Allan MacRae:
At September 18, 2013 at 2:19 am you say to the egregious timewaster posting as SideShowBob

Bob, maybe you can understand this:
“Wind Power – It doesn’t just blow; it sucks!”

Of course he/she/they understands it. He/she/they is trying to excuse it.
Please note that SideShowBob said at September 17, 2013 at 3:42 pm
http://wattsupwiththat.com/2013/09/17/quote-of-the-week-the-recasting-of-the-argument-begins/#comment-1419748

you say remove the subsidies for renewables (which I’m all for BTW as they affect the competitiveness of my business)

So, he/she/they says he/she/they is making a living on the basis of the subsidies. Well, if he/she/they had not admitted it, then we could have inferred it from the egregious misrepresentations he/she/they is posting here.
SideShowBob is merely another – in this case, self confessed – rent seeker trying to sustain his/her/their ripping off the public for as long as possible.
Richard

richardscourtney
September 18, 2013 3:31 am

SideShowBob:
I am replying to a series of your egregious posts in this single post.
At September 18, 2013 at 1:53 am you reply to my reasoned explanation for you at at September 17, 2013 at 3:32 am by saying

What the hell are you talking about? Are you talking about your airy fairy drivel about how all energy is free and how nature has collected it for us! You call this “proof” ? I give you statistics from reputable organizations that have done the costings and you this give this fluff and call it “proof” – And then chastise me for not responding to it ???

No, I was “talking about” my irrefutable explanation which you could not refute so you ignored.
It began by telling you

Costs are the sum of price and subsidies. And being “cheaper” is having lowest costs.
Renewables such as wind and solar cannot be cheaper than coal or other fossil fuel energy: it is physically impossible. I explain this as follows.

You ignored both the statement and the explanation of it then continued your fallacious assertions about prices. Indeed, the “statistics” you trumpet are about prices.
At September 18, 2013 at 1:57 am you quote my having stated at September 17, 2013 at 4:14 pm

The fossil fuel industries have lowered tax burdens. If you want to call that a “subsidy” then feel free, but wind and solar cost at least 5 times as much and get actual subsidies. .

And you reply

Yes I call it a subsidy, it come from tax payers doe it not, and yes fossil fuel have historically been granted more subsidies than renewable, as I pointed out in a link, but feel free to ignore that point…

I ignore none of your nonsensical and misleading points. Please do NOT attribute your egregious behaviour to others.
Of course, “fossil fuel have historically been granted more subsidies than renewable” because fossil fuels have provided the basic requirement of industrial civilisation whereas renewables have produced almost nothing and nothing cannot be taxed. Your “point” is ridiculous.
Then you revert to repeating your falsehood that I had already explained to you is a physical impossibility when you say

I’m just point out that renewable’s are fast becoming much cheaper than coal ..

Bollocks! Renewables are becoming PRICED lower than coal because their high cost is being subsidised to reduce their price.
As I had already said, the reality which you are trying to conceal is
Costs are the sum of price and subsidies. And being “cheaper” is having lowest costs.
After that nonsense, at September 18, 2013 at 1:59 am you quote my having said at September 18, 2013 at 1:14 am

In other words, you have deliberately misrepresented the post of kadaka (KD Knoebel) which provided a detailed explanation of how and why figures you have been asserting are untrue and misleading

And reply

In Well if you think that then anyone can look at the study that Kadaka linked to and draw their own conclusions

Freely translated, your reply says you know the critique of of kadaka (KD Knoebel) is irrefutable so you will pretend it does not exist.
And your reply to kadaka (KD Knoebel) having pointed out – with evidence – at September 18, 2013 at 1:16 amt

The solar PV industry is busy failing …

Is at September 18, 2013 at 2:08 am and in effect consists of putting your fingers in your ears and shouting “La, La, La, …”.
SideShowBob, your posts would be funny if they were not so sad.
Richard

kadaka (KD Knoebel)
September 18, 2013 3:47 am

From SideShowBob on September 17, 2013 at 7:18 pm:

But the bigger point I’m not sure how you guys keep missing/ignoring is that the historic price for coal is going up and price for renewable is going down, I’m not sure when that study was done but the price for solar PV fell 23% over the last 12Months

Except the current price for coal in general is actually low by historic standards.
http://www.eia.gov/totalenergy/data/annual/showtext.cfm?t=ptb0709
Coal prices 1949 to 2011, price per short ton. There’s a handy graphing tool, select Real Dollars (adjusted for inflation/purchasing power) and look at each coal type and total (average) price at the same time.
The high-quality anthracite is in high demand for steel making but also for power generation. The next-best bituminous benefits from substitution and briefly surpassed anthracite, which the market corrected. Neither have exceeded their historic highs, and extraction technology has improved which lowers production costs. The new abundant natural gas reserves shall displace some of that coal use, lowering those coal prices.
Meanwhile the low-grade lignite has been relatively cheap for over sixty years, and “subbituminous” is even cheaper. They also haven’t reached their historic highs.
Coal in general is just a bit more than half of its 1975 all-time high.
So by the proper metric, coal is still cheap, and will likely get cheaper as demand shifts to natural gas. Heck, bituminous has actually dropped lately.
Meanwhile subsidies for wind and solar are going away, thus the real costs are going up, not down. Wind and solar technologies have gotten about as mature as possible, their production costs aren’t getting any lower.
Thus it looks about as likely that coal will be getting cheaper, while renewables will get more expensive.

rogerknights
September 18, 2013 5:37 am

http://seekingalpha.com/article/1700112-dark-clouds-ahead-for-solarcity
So given all this great news for SolarCity, what’s not to like? Well unfortunately there are many headwinds ahead for SolarCity. Below I highlight some of the major risks of investing in this company.
Less subsidies
The current tax credit of 30% is set to decrease to 10% at the beginning of 2017 in the United States. I would not expect any type of extension if not possibly decreasing it even further. The U.S. is already $16 trillion in debt on top of a continually rising Fed balance sheet due to the spending of billions of dollars through quantitative easing programs to boost the economy. These tax credits are crucial not only to SolarCity but the entire solar industry. If you completely wipe out all subsidies, solar power is simply not competitive with traditional power like coal, nuclear, and natural gas at the present time. A decrease this significant will essentially raise the cost of capital and translates to higher prices charged to SolarCity’s customers which will decrease demand and possibly squeeze margins.

SideShowBob
September 18, 2013 5:56 am

richardscourtney says:
September 18, 2013 at 2:51 am
” (which I’m all for BTW as they affect the competitiveness of my business)”
“So, he/she/they says he/she/they is making a living on the basis of the subsidies. Well, if he/she/they had not admitted it, then we could have inferred it from the egregious misrepresentations he/she/they is posting here.”
Let me rephrase it for you so there is no misunderstanding, solar PV subsidies make my business less competitive as, i.e. they harm my business. I’ve never taken subsidies nor do I believe in them nor would I get involved in a business that takes subsidies. Clear now?

SideShowBob
September 18, 2013 6:00 am

Allan MacRae says:
September 18, 2013 at 2:19 am
“Handling such significant differences in feed-in
levels poses a major challenge to grid operators.”
Yes I see the challenges, do I think that Germany should insulate itself from Russian energy (and as a side benefit set the country up if climate change turns out to be real) – even though there are these challenges. yes.!

richardscourtney
September 18, 2013 6:41 am

SideShowBob:
Thankyou for clarifying the matter as you do in your post at September 18, 2013 at 5:56 am.
You make this statement in your subsequent post addressed to Allan MacRae at September 18, 2013 at 6:00 am

if climate change turns out to be real

I assure you that climate change is very real.
Climate always has changed and always will change everywhere.
It would be news if climate were to stop changing.
These facts are only disputed by believers in the disproved hypothesis of anthropogenic (i.e. man-made) global warming (AGW).
Richard

SideShowBob
September 18, 2013 7:06 am

kadaka (KD Knoebel) says:
September 18, 2013 at 3:47 am
“Thus it looks about as likely that coal will be getting cheaper, while renewables will get more expensive.”
Yes well we’ll see, frankly I think you’re going to lose your pants if you throw in your lot in with coal

Craig Loehle
September 18, 2013 7:24 am

When you believe virtue prevents all bad things from happening, then “eliminating fossil fuel use” sounds just fine since you don’t have to count either the direct costs, the opportunity costs, or the unintended consequences. This is the common problem with activists of all stripes–they want what they want, and the emotion overrules any ability to be objective and look at costs and benefits. Thus “if it saves one life” leads to policies that indeed save one life….and sacrifice 5.

William Astley
September 18, 2013 9:20 am

The climate change conversion is changing as the media, public, and politicians start to become aware of the facts/issues. The conversion changes when reality is not ignored.
Green scams will quadruple the cost of electric power (type of indirect taxation on consumers), resulting in job losses and a significant reduction in standard of life. The activists and the industrial leaches that profit from the green scams have hidden the facts that show green energy is a scam that does not significantly reduce carbon dioxide emissions. If there was a CO2 AGW problem, nuclear power is the solution, not green scams. Using fourth generation nuclear power and extracting uranium from the ocean provides roughly a billion years of power (William: As per James Hansen’s high level analysis, multiple papers.) Western countries have massive accumulated debit, are running yearly deficits, and have high unemployment. Western countries do not have surplus funds to waste on green scams.
http://www.forbes.com/sites/williampentland/2013/08/16/no-end-in-sight-for-spains-escalating-solar-crisis/
….The associated economics (William: green scam) are something akin to the (William: economic) apocalypse…. ….Spain calls it the “tariff deficit,” a massive debt that accumulated over the past decade as the cost of running the country’s electrical system exceeded the revenues generated by sales of power. … … In May, the tariff deficit reached a whopping $34 billion. …. ….In 2007, Spain paid a premium of $556 per megawatt-hour for electricity that rooftop solar panels supplied to the electric grid, compared with an average $52 paid to competing coal- or gas-fired power plants. (William: Solar subsidy is 10 times the cost of competing sources.) By 2012, a whopping $10.6 billion in subsidies were paid out to the renewable energy industry, rising by about 20% from the previous year, and covering more than one third of all electricity generated in Spain.
http://theenergycollective.com/willem-post/169521/wind-turbine-energy-capacity-less-estimated
As a result of the existing RE build-outs, German household rates increased from 13.94 to 28.50 eurocent/kWh, from 2010 to 2012, a 104.4% increase, and industrial rates increased from 6.05 to 16.10 eurocent/kWh, from 2010 to 2012, a 166% increase. According to a recent study for the federal government, electricity will cost up to 40 eurocents/kWh by 2020, a 40% increase over 2012 prices.
Among european nations, German households have the second highest electric rates; 28.5 eurocent/kWh (energy, plus fees, plus taxes), after Denmark (32 eurocent/kWh), courtesy of RE. US low electric rates are the envy of heavy industry elsewhere, including Germany. France’s are among has the lowest.
William: The average cost of power to US consumers is US $0.1057/kw-hr, a third of the cost of electric power in Germany. ($1 US = 0.75 Euro) http://www.eia.gov/electricity/monthly/update/end_use.cfm Note the phony solar economics and wind farm calculation which is quoted in other comments in this thread is based on peak noon solar energy generated on a cloudless day and optimum wind speed, not realistic 24/7 solar and wind farm.
Germany’s Solar Energy: About 22,000 MW of Germany’s 32,800 MW of PV solar systems (end 2012) are in South Germany. (William: Note quoted solar capacity is noon, cloudless day, not 24/7 realistic calculation) On a sunny summer day, from an output of about 0 MW at 6 AM, the PV solar output increases to about 16,000 MW at about noon, and back down to about 0 MW at 6 PM. As this would create major disturbances on the grid and, as PV solar panels cannot be turned off, Germany has to export part of the PV solar energy from about 10 AM to about 2 PM. …. …..As a result of the existing RE build-outs, German household rates increased from 13.94 to 28.50 eurocent/kWh, from 2010 to 2012, a 104.4% increase, and industrial rates increased from 6.05 to 16.10 eurocent/kWh, from 2010 to 2012, a 166% increase. According to a recent study for the federal government, electricity will cost up to 40 eurocents/kWh by 2020, a 40% increase over 2012 prices. Among european nations, German households have the second highest electric rates; 28.5 eurocent/kWh (energy, plus fees, plus taxes), after Denmark (32 eurocent/kWh), courtesy of RE. US low electric rates are the envy of heavy industry elsewhere, including Germany. France’s are among has the lowest.
William: Note Germany is exporting solar energy at a loss to France and Czech. France and Czech cannot therefore rely on solar energy. The green scams do not work if the objective is to reduce CO2 emissions for whatever reason by 50% for all countries. Nuclear is the only solution. Note Germany has 2300 km of high voltage power lines that need to be constructed due to green scams. The cost of the 2300 km of high voltage power lines and new back up fossil fuel plants that are required has not been included in the green scam economics.

September 18, 2013 9:58 am

SideShowBob on September 18, 2013 at 7:06 am

kadaka (KD Knoebel) says:
September 18, 2013 at 3:47 am
“Thus it looks about as likely that coal will be getting cheaper, while renewables will get more expensive.”

Yes well we’ll see, frankly I think you’re going to lose your pants if you throw in your lot in with coal

– – – – – – – –
SideShowBob,
“Yes well we’ll see” from various aspects.
Just one of the aspects is that what we see develop in the energy market is not economically calculated and therefore an illusion. That could be the case when there is broad based coerced government intervention in the energy industry that pre-empts the market which makes economic calculation invalid. In that case the energy industry is cloaked from our view economically. For background on that concept please see: von Mises; von Hayek; Mencken.
John

richardscourtney
September 18, 2013 10:24 am

philjourdan:
At September 17, 2013 at 4:14 pm I replied to SideShowBob saying

The fossil fuel industries have lowered tax burdens. If you want to call that a “subsidy” then feel free, but wind and solar cost at least 5 times as much and get actual subsidies.

In your post to SideShowBob at September 18, 2013 at 9:59 am you say

The only way it is a cost to taxpayer is if ALL MONEY belongs to the government, of which they allow you to keep some. That is true in communistic countries. But not in the rest of the world.

For clarity, I write to say I agree with your statements in your post I have quoted here.
Richard