Just give it time and money. A lot of money.

That was the assertion of renewable energy proponents, who said wind and solar could and would compete with more traditional fuel sources such as coal, natural gas, oil and nuclear power. It just needed time and a lot of money.

For proof, take a closer look at a new $2.3 trillion omnibus spending/COVID-19 relief bill that passed Congress on Dec. 21 and continues to provide subsidies for wind and solar, even as advocates say they have become cost-effective without government support.

Bill Peacock | File photo

“Today renewable energy is so cheap that the handouts they once needed are disappearing,” according to a Sept. 19, 2019, Bloomberg article.

“On sun-drenched fields across Spain and Italy, developers are building solar farms without subsidies or tax breaks, betting they can profit without them,” it states. “In China the government plans to stop financially supporting new wind farms. And in the U.S., developers are signing shorter sales contracts, opting to depend on competitive markets for revenue once the agreements expire.”

Why the subsidies in this packed bill? Indeed, there are several, with the total reportedly topping $35 billion.

The Production Tax Credit (PTC) was extended for a year, through 2022, and the Investment Tax Credit (ITC) was extended through 2023.

Congress also extended the ITC for five years for offshore wind projects which begin construction before Jan. 1, 2026. The tax credit for carbon capture and sequestration projects was extended through 2025.

The commercial building energy efficiency tax deduction, set to expire at the end of 2020, was made permanent with an annual cost of living adjustment included. Other tax credits were included in the bill, which critics say was hastily concluded and passed.

Renewable fuels advocates say oil, gas, coal and nuclear power have been the recipients of government support for decades. They argue that lawmakers are merely trying to balance the field to work toward a cleaner environment and lower energy costs, noting that Americans now use just 3% of their income to pay electric bills. That’s why Congress is subsidizing these fuels, they say.

Bill Peacock of Austin, policy director of The Energy Alliance, said it’s about power, but the political variety, not energy.

“Given all the claims of how competitive renewable energy is today, a lot of people would like to know why Congress is extending subsidies for wind and solar,” Peacock told Lone Star Standard. “Congress is extending subsidies for wind and solar not to save the planet but to pay off all the corporate cronies who fund their campaigns and keep them in office. We have been told renewable fuels just need time to catch up, but that is never going to happen. One reason is that wind and solar have been used for power far longer than oil, gas and even coal.”

He said the reality is that people and businesses will need traditional energy sources for well into the future.

“Renewables will never be able to compete with traditional power sources because they are unreliable and inefficient,” Peacock said. “They often just don't show up when they are most needed.”

The heat wave that broiled Texas in August 2019 offers a vivid example, he argued.

Wind generation had grown by leaps and bounds in the Lone Star State, providing 26% of capacity. This subsidized form of energy had lowered prices artificially and more than 5,000 megawatts of traditional energy sources had been halted, Peacock said.

When the extreme heat hit Texas – not an uncommon event – that 2019 summer, and wind generation declined markedly, the cost of power skyrocketed from $20 per megawatt hour on the morning of Aug. 13, 2019, to $9,000 per MWh for a few minutes in the afternoon.