Right, Oilprice.com, Wind Energy Unprofitable – Can It Go Up?

from climateREALITY

Via Linnea Lueken

A recent article at Oilprice.com explains how wind energy is unprofitable, detailing some of the economic barriers faced by industrial wind energy development. Supply chain issues, inflation, possibly high fossil fuel prices, and other issues have resulted in billions of dollars in losses. Even so, wind companies are not interested in going bankrupt, mainly because governments are demanding an increase in the number of wind turbines added to the grid in pursuit of carbon dioxide emission policies. zero, complete with generous subsidies.

Author of the Oilprice.com article, “Wind energy has a profitability problem,” Felicity Bradstock, points out that although large investments and government mandated construction have led to growth in the wind energy industry, “companies are realizing that it is difficult to turn energy into energy. wind into profit.” Bradstock says the return on investment is not what companies expect, writing:

In June last year, it was reported that some of the largest wind energy companies in the world were facing heavy losses. Vestas Wind Systems, General Electric Co. and Siemens Gamesa Renewable Energy both faced extreme logistics and raw material costs following the pandemic as supply chains were disrupted. This follows an arms race in which wind experts are competing to build the tallest, most powerful wind turbines at any cost that can put them above the rest.

Losses are widespread in 2022, amounting to $2 billion for GE’s renewables division, $1.68 billion for largest turbine maker Vestas, and a 943.48 million loss Siemens Energy dollars.

Obviously, although companies are optimistic, but in no small part because governments are demanding use of their products through renewable energy mandates, high demand is “promising”. and “new grants and subsidies are keeping the wind industry spirits high, and we can expect even more incentive for new wind capacity worldwide as other countries and regions introduce their own climate policies.”

The loss of the wind industry is not surprising, given that the product itself is not reliable. In many articles, Climate realism discussed, This, ThisAnd ThisFor example, wind energy does not deliver the power promised to customers.

Climate alarmists and renewable energy advocates often cite claims that wind power, or renewables in general, is cheaper than fossil fuels, but the reality is different. The discontinuous nature of wind power leads to higher grid operating costs. In addition, the service life of these turbines is much less than claimed by the manufacturer. In the case of one of Oregon’s largest wind power facilities, Bigelow Gorge, turbines fail so often that they last only half their expected life. This facility averages 27.6% of its rated production capacity. In addition, when wind turbines are idle, energy must be supplied elsewhere, usually from fossil fuel-powered plants, however costly to keep those plants idle or operating below the peak of no charge to wind power facilities. as it should be.

What is clear is that wind power facilities have huge initial capital costs during construction and turbine installation. The Oilprice.com article also confirms that these costs are rising rapidly due to higher material costs, higher energy costs, supply chains and global trade issues.

Despite their enormous losses, these companies have continued to exist, purely due to federal and state government intervention in the form of mandates, tax credits, property tax breaks, subsidies, guaranteed expenses passed on to taxpayers, and other types of support. EQUAL Climate realism discuss This“Without government subsidies and mandates, wind and solar power would largely be a small source of energy for the wealthy.”

The public owes news agencies like Oilprice.com a debt of gratitude for reporting on the high costs and limited benefits of wind energy. Sadly, most media reports about wind energy through a “pink lens”, distorting the true cost of wind energy. If the technology is really that great, it will be able to compete in the market without the constant government support.

Linnea Lueken