Wind-energy certificates: Clean power or scam?
I keep mentioning "100 percent" wind energy available in Maryland for the lowest cost ever. I chose to go with cheaper, conventional electricity offered by Washington Gas Energy Services, pledging to put the savings into weatherization and cutting energy use of all kinds.
Commenter Andrew says: "Sorry, but if you care about other people in the world, the wind power would have been better."
In the San Jose Mercury News, UC Santa Cruz professor Daniel Press argues that wind-power certificates of the type that back green-electricity contracts in Maryland are being peddled by "green-energy scammers."
Are wind-energy contracts a scam? Or will they save the world?
Neither, actually. I would describe the deals being offered by Clean Currents and other purveyors of wind energy in Maryland as environmentally friendly and supportive of alternative energy -- just not necessarily in Maryland. 100-percent Wind energy deals in Maryland come with two parts: 1) traditional energy off the grid, generated by the usual suspects, coal and nuclear fission; and 2) Renewable energy certificates, sold by wind-power companies, pledging that somewhere wind energy was used to generate kilowatts equal to the amount your home consumed.
There's no reason why you can't buy RECs directly from various purveyors instead of bundled with your residential electricity bill. (It looks like they cost about 2 cents/kwh these days.) However purchased, RECs direct additional resources to wind-power farms and, at the margin, provide incentives to build new wind-generation capacity. And the planet doesn't care where carbon emissions are produced. If wind farms in Texas or Western Maryland mean the system has to build fewer coal plants, that's a good thing. So is cutting energy use from any source.
Press, however, says:
Wind farms in California and Texas sell electricity on the wholesale market, with a significant boost from federal production tax credits for renewable energy. But prices for renewable-energy certificates, as negotiated by brokers and power producers, are very low — 10 percent of the difference between the cost of producing nonrenewable and renewable energy, and far too little to actually spur production.
Comments
What are your thought about the natural gas offerings by non BGE providers? We are considering WGE to provide natural gas to our home, but I don't know enough about the natural gas market to decide if it is a smart idea to lock in today.
Posted by: Donna | April 15, 2009 8:48 AM
Donna: Here is a link to a column I wrote on natural gas deals. JH
http://www.baltimoresun.com/business/bal-bz.hancock25.1mar25,0,5508480.column
Posted by: Anonymous | April 15, 2009 11:30 AM
WGES offered lower rates through a co-op at the local American Legions. You had to be a member and sign up by March 1, 2009. I was skeptical...now here we are 5/1 and they (mom and her sisters) are reaping the benefit...My mother and her 2 sisters signed up. all their husbands being Legion members. Locked in at 10.8 and have already lowered their monthly bills with BGE. I looked into signing up online . If you go to Clean Currents page to sign up your supplier is still WGES but at a rate of 11.2 for 2 yrs. this is not a scam....your bill still comes from BGE and they still service your needs just the supplier changes....
Posted by: marie | May 1, 2009 11:54 AM
Good post!!! Thanks...
Posted by: Solar Power Business | May 13, 2009 6:18 AM
Good information! I think as more and more turbines are produced, the cheaper they will become!
Posted by: Alternative Energy | May 30, 2009 9:02 PM
Thank you for writing about wind energy RECs. To install a wind energy system costs about 1/5 what PV solar energy systems cost. For that savings alone it could be prudent to have a wind powered generator. Furthermore, some wind energy systems have become so efficient at "low wind speed startup" that they start producing at less than 4 miles per hour (1.8 m/s). My web page gives some current examples of who is buying RECs (not all buyers are listed, just some).
Posted by: James McGrew | June 1, 2009 11:56 AM
I think wind energy is great when the wind is blowing. Something like geothermal would be more reliable.
Posted by: Sandy | August 26, 2009 4:06 PM
I am interested in switching to WGES as my electricity supplier, Allegheny, is trying to force new 765KV transmission lines and a huge substation in Frederick County MD (the PATH project). The new transmission lines are to serve NY and NJ, and only 14% is delivered to MD. Current energy demands show there is no need for these new lines, and we shouldn't be increasing output from old coal-fired polluting plants connected to these new lines. We should be exploring locally generated, renewable energy sources instead. I like the idea of 100% wind powered energy being offered by WGES, but I wish it was due to local generation. Thanks for explaining RECs. We may try it for 1 year as we learn more about it..
Posted by: Dave | September 22, 2009 7:19 AM
Wind is only a small part of the solution albeit an important part. The fact of the matter is that it's for some reason or another part of the human code to scam. No matter what the industry is there will be people and companies willing to cheat and lie for a few extra dollars, this goes without saying.
Posted by: Scott Harks | September 30, 2010 10:15 PM
Wind energy can be a great alternative in some parts of the world. However in other parts, it is not a viable option. The same can be said about solar energy. It is all about finding out which alternative works best.
Posted by: Dr. Ben - Solar Inventor | January 12, 2011 2:04 PM