The Coming Green Energy Bailout: A Cautionary Tale
Note: This is an article variation of Peter St Onge's video, The Coming Green Energy Bailout.
The push for green energy has been ramping up for years now, but recent developments have many people taking a step back and reconsidering the economic implications. According to Peter St Onge, Ph.D., this situation is rife with problems, and the end consumer will most likely bear the brunt of it.
The Price Hike Crisis
"New York State has just reported that large offshore wind developers are demanding an average 48% hike in their electricity rates," St Onge mentions, citing a recent Wall Street Journal article. Furthermore, an alliance of 86 clean energy providers, both solar and wind, is demanding a staggering 64% hike in rates in New York. Similar demands have appeared in 11 other states, and the numbers are growing weekly.
The Irony of the Inflation Reduction Act
"Despite Biden's comically named Inflation Reduction Act, which consisted mainly of hundreds of billions in crony handouts to green companies, prices are skyrocketing," St Onge explains. One particularly concerning feature was a massive tax credit that offset 50% of a project's cost. Companies could sell these credits even if they were losing money, meaning they paid zero federal tax and made money from selling exemptions.
The Trillion-Dollar Drain
St Onge emphasizes the massive amounts at stake. "Credits are now running two to four times what was promised. They're on track to cost $1 trillion over the next decade," he warns. These hikes are on top of these trillion-dollar handouts, making the situation even more dire for the average consumer.
Texas: A Case Study in Failure
"Take Texas, for instance. They are facing an energy emergency once again because the wind isn't blowing," St Onge points out. Prices have soared to $5,000, a far cry from their usual 20 or 30 bucks. "As the windmills sit idle, the gas and coal plants that could have picked up the slack do not exist. It's a recipe for disaster," he adds.
The Inflation Push
St Onge also identifies a paradox. "Ironically, the Inflation Reduction Act is pushing up inflation because the trillions flooding into green tech are driving up demand for equipment, material, and minerals that were already in severe shortage," he states. As one commentator put it, "Everything Biden does leads to more inflation."
According to St Onge, things look bleak. "Expect soaring electric bills draining family budgets, more inflation, and even more government nagging to turn down the thermostat," he warns. Peter St Onge leaves us with a grim but realistic view: "It's always the ordinary citizen who pays the price for these grand schemes, both literally and metaphorically."