Blame a perfect storm of bad government policies, timing and weather. Coal and nuclear are the most reliable sources of power. But competition from heavily subsidized wind power and inexpensive natural gas, combined with stricter emissions regulation, has caused coal’s share of Texas’s electricity to plunge by more than half in a decade to 18%. Wind’s share has tripled to about 25% since 2010 and accounted for 42% of power last week before the freeze set in. About half of Texans rely on electric pumps for heating, which liberals want to mandate everywhere. But the pumps use a lot of power in frigid weather. So while wind turbines were freezing, demand for power was surging.
This begs the question, why would investors build new intermittent sources of generation in Texas like wind and solar that do not show up when needed? And that cannot take advantage of the higher prices during times like these?
The sole cause for this, that in normal market circumstances would be an obvious malinvestment, is renewable energy subsidies.
From 2006 to 2019, wind and solar generators in Texas received about $19.4 billion in subsidies and benefits from taxpayers and consumers. It is estimated generators will receive another $15.9 billion over the next decade. In 2018, about 28% of renewable generators’ income comes from subsidies. Investors have flocked to these subsidies. And why shouldn’t they? Free money and subsidized transmission from the government makes for a very attractive return on investment.
On the other hand, investors have spurned investment in reliable traditional generation sources like coal and natural gas. Coal, of course, has been run out of business by the U.S. Environmental Protection Agency. Investors are spurning natural gas, however, simply from an economic perspective. Without the massive subsidies offered to wind and solar, new natural gas plants cannot compete.
Because of market distortions created by renewable subsidies, when Texas ran low on electricity Monday night, the grid operator had nowhere to turn. Reliable natural gas plants that could have shouldered much–if not all–of the heavy load were nonexistent. Because they had not been built, thanks to the malinvestment in renewables.
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29 YEARS AGO, Soviet defector and KGB operative Yuri Bezmenov, specializing in the fields of Marxist-Leninist propaganda and ideological subversion; warned us about the silent war being waged against America as part of a long term plan to take over and destroy the American system and way of life. Watch this clip in AMAZEMENT as you realize he is describing EXACTLY what's happening in America today,