tom Andersen

Wind Power: What We Can Learn from Denmark

Denmark has the second dirtiest electrical grid in Europe, as the other 80% (really 90%) of the power comes from a coal plant. And oh yeah electrical rates that are about 3 x those in North America. Sounds good. Lets triple your electric bill. Puts more money into Vesta and GE, though. Don't forget poor Goldman Sachs - one of the leading wind developers in the US. Wind power in North America is about one thing: Tax avoidance.

The Year Ahead For US Wind

The main benefit of wind power to a large corporation is NOT in the paltry, low quality, electricity, or the raw PTC 1.5c / kwh, which is connected to production, but rather in the luxurious tax breaks that you get. I think that these tax breaks will go the way of the dodo when government income drops like a stone in 2008/9.

From an investment point of view, wind is only about government tax breaks. I for one would not put a dime this kind of endeavor, given the fickle nature of our politicians.

"During a December 15, 2004, teleconference, Ed Feo - Milbank Tweed Hadley & McCloy, LLP pointed out that 2/3 of the economic value of wind projects come
from tax breaks.9
"
FPL group paid no federal tax in 2002 and 2003, with 2 billion in net income. When governments come up 10 - 20% short on revenue next year it will be hard to continue these subsidies.

See:
johnrsweet.com/Persona...