The tens of billions of dollars in subsidies going to Texas wind and solar projects needs to stop, said the head of a business energy watchdog in a recent news release.
"Texans are paying a high price to support expensive and inefficient renewable generation," Energy Alliance policy director Bill Peacock said in July 20 news release. "These federal, state and local subsidies for renewable energy are undermining the reliability of the Texas electricity market."
The news release announced release of an Energy Alliance report, "The High Cost of Renewable Energy Subsidies," issued the same day.
The eight-page report details how much has been provided to wind and solar generators in the state since 2006, about $19.4 billion since 2006.
"It is estimated they will receive another $15.9 billion over the next decade," the report's executive summary said. "Texas policymakers should eliminate subsidies for renewable energy in order to ensure an energy abundant future for Texas."
Energy Alliance is a Texas Business Coalition project intended to raise awareness of issues of reliability, affordability and efficiency in the energy market, according to the news release.
The billions that wind and solar generators in Texas have received since 2006 breaks down to about $9.5 billion in federal tax credits and direct payments, $8.7 from the state subsidies and about $1.1 billion in property tax abatements, according to the report.
The state's renewable energy subsidies began in 1999 with creation of the Renewable Portfolio Standard, according to the news release. About six years later, the state's legislature mandated construction of Competitive Renewable Energy Zones (CREZ) transmission lines.
The CREZ transmission lines were intended "to subsidize the cost of transmission from wind and solar farms," the news release said.
"Property tax abatements for wind and solar generators are provided by school districts, counties, and other local taxing entities through Chapters 312 and 313 of the Texas Tax Code," the news release continued. "The federal government began subsidizing wind generation in 1992 through the Production Tax Credit and solar generation in 2005 through the Investment Tax Credit."
The billions in spending for renewable energy in Texas since 2006 has been enough, Peacock said in the news release.
"The only way to ensure that Texans can keep the lights on without emptying their bank accounts is to eliminate renewable energy subsidies," he said.
