How passing the reconciliation bill will destroy American energy, part 2

The reconciliation bill's 10-year extension and increase of solar and wind subsidies will drive more and more reliable power plants off the grid, lead to skyrocketing prices and frequent blackouts.

The reconciliation bill calls for a 10-year extension and increase of the Investment Tax Credit (ITC) subsidy for solar and the Production Tax Credit (PTC) subsidy for wind, which pay utilities to slow down or shut down reliable power plants whenever the sun shines or wind blows.
Solar+wind cannot provide the reliable energy that our amazing electrical grid requires 24/7. That’s why every place in the world that uses unreliable solar+wind depends 24/7 on massive amounts of reliable energy from coal, gas, hydro, or nuclear plants.
Because solar panels and wind turbines are unreliable they can’t replace our reliable power plants, only duplicate or supplement them at tremendous cost. That’s why the more solar+wind a grid uses the more expensive its electricity tends to be.
Germans, to get 37% of their electricity from unreliable solar+wind, have doubled their prices--now 3X US prices. And they can only get away with 37% because they have neighbors to bail them out when solar/wind fall short. The US as a whole has no such neighbors.
The only reason utilities buy unnecessary, wasteful solar panels and wind turbines is government policies that force them to do so or reward them for doing so.

“We get a tax credit if we build a lot of wind farms. That’s the only reason to build them.”
--Warren Buffett.
The two worst solar/wind policies today are the solar Investment Tax Credit (ITC) subsidy and the wind Production Tax Credit (PTC) subsidy, which pay utilities to shut down or slow down reliable gas, coal, and nuclear power plants whenever the sun shines or the wind blows.
By paying utilities to shut down or slow down reliable power plants whenever the sun shines or the wind blows, the ITC/PTC end up defunding reliable power plants, driving many out of operation and threatening the grid’s future.
ITC/PTC subsidies help solar+wind to win on distorted wholesale markets and are a major driver of premature retirement of CO2-free nuclear plants, as unreliable sources are allowed to produce erratically and then and force nuclear plants to pay for the cost of balancing the grid.
Congress needs to let the ITC/PTC subsidies expire, end all forms of energy favoritism, and let technologies compete on reliability and cost. That will reduce electricity prices, increase reliability, and increase innovation.
Instead of letting the disastrous ITC/PTC subsidies expire, the Biden reconciliation plan calls for increasing these subsidies and extending them for 10 more years! If this happens, say goodbye to nuclear power, and to any form of affordable, reliable power.
Anyone who cares about CO2 emissions must recognize that the only non-carbon energy source that has a chance of outcompeting fossil fuels is nuclear energy. The reconciliation bill's ITC/PTC extension undercuts existing nuclear and effectively prevents new nuclear.
Summary: The reconciliation bill's goal of expanding the ITC/PTC subsidies will make power more expensive and less reliable, and further undermine nuclear energy. We must scrap this threat to American energy and create a bill to liberate American energy.

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More from @AlexEpstein

3 Nov
At COP 26, politicians and celebrities are calling for the world to rapidly eliminate fossil fuels because otherwise we will pass the dreaded 1.5°C threshold of warming.

But we should not fear 1.5°C--we should fear the genocidal consequences of eliminating fossil fuels.

A goal of limiting warming to 1.5° since the 1800s has no scientific basis whatsoever. The 1800s were a very cold time (Little Ice Age) and the 1°C warming since then has coincided with the greatest improvement in human life in history—in large part due to fossil fuels.
When people talk about 1.5°C of warming as catastrophic, it's even more absurd than it sounds because it's not 1.5°C warming starting now, it's 1.5°C total since the 1800s. Which means 0.5°C warmer than now--in a world where far more people die of cold than of heat.
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3 Nov
The IPCC is a political and religious organization that does not value humanity's incredible progress, that totally evades humanity's increasing safety from climate, and whose ultimate goal is an unimpacted climate and Earth--not a livable climate and Earth.

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28 Oct
Biden's new reconciliation framework is not "moderate." It includes a *10-year extension* of today's most destructive electricity policy: the PTC/ITC wind/solar subsidies that defund and shut down reliable power plants, including nuclear plants. Vote no!…
Warren Buffet on the wind Production Tax Credit. This cannot continue for 10 years without leading to a third-world grid.
Biden's reconciliation framework extends for 10 years wind/solar subsidies that are the #1 cause of the senseless shutdown of non-CO2-emitting nuclear power plants. This is "climate policy"??
Read 4 tweets
28 Oct
Today the House is holding a hearing to threaten “Big Oil” for its “climate disinformation”—i.e., for expressing the opinion that CO2 emissions wouldn't be catastrophic, an opinion that turned out to be right. This hearing is therefore an attack on free speech and on reality.🧵
Our Constitution says that “Congress shall make no law…abridging the freedom of speech.” This applies to all of us, including oil company execs. And yet Congress today is holding a hearing aimed at punishing “Big Oil” for expressing opinions that politicians disagree with.
The House Committee on Oversight and Reform hearing “Exposing Big Oil’s Disinformation Campaign” legitimizes itself by saying that "Big Oil" funded groups skeptical of climate catastrophe. But oil company owners and operators had every right to do that.…
Read 12 tweets
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Hi @thenorthface, this is my favorite story about your jackets: how an articulate oil and gas CEO called you out for your anti-oil-and-gas hypocrisy, and how you went from a company that couldn't shut up about climate to a company that had nothing to say.…
Here's Innovex CEO Adam Anderson's original letter to @thenorthface, using arguments from The Moral Case for Fossil Fuels. The North Face could and did say nothing to refute him.…
Here's Liberty Oilfield Services CEO Chris Wright challenging The North Face with humanistic arguments. Again, The North Face could and did say nothing to refute him.
Read 4 tweets
21 Oct
How passing the reconciliation bill will destroy American energy, part 1

The reconciliation bill’s goal of 80% "clean electricity" by 2030, which has still not been abandoned, would mean going from 10% unreliable solar+wind to a catastrophic 50% solar+wind in 8 years.

Now that the disastrous Clean Electricity Performance Program is gone from the reconciliation bill, many think our grid is safe. Not true. Dem leaders are still committed to the CEPP's goal of "80% clean" through other means, saying "there's more than one way to skin a cat."
The reconciliation bill still contains many provisions to pursue the goal of "80% clean electricity" by 2030--including a 10-year increase of the solar and wind subsidies that have already made American electricity far less reliable and affordable.…
Read 20 tweets

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