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Tipsheet

Study: Wind Power Costs Taxpayers Billions of Dollars

According to a new study conducted by Texas Tech University Professor Dr. Michael Giberson for the Institute for Energy Research, the government and wind lobby aren't telling taxpayers the whole truth about how much wind energy really costs. The study comes as the wind lobby is set to receive another extension on massive subsidies with little results to show for it.

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"As Big Wind's lobbyists fight tooth and nail to extend the wind Production Tax Credit, it is important that we look at the true costs of wind power to taxpayers and ratepayers," IER President Thomas Pyle said about the study. "Despite being propped up by government mandates and billion dollar subsidies for decades, wind power continues to be an expensive and boutique energy source that the American people cannot rely on for power when they need it. Although lobbyists for the wind industry prefer to downplay the real costs of wind power, Dr. Giberson has produced a fact-based study that demonstrates just how expensive it really is."

According to the study, wind energy costs taxpayers $12 billion per year and shows wind power costs $109 per megawatt hour, nearly double government estimates of just $72 per megawatt hour. The study also shows wind power doesn't decrease the cost of electricity as environmental groups and government advocates claim, but instead shifts costs onto taxpayers. In addition, wind energy subsidies allow those who start wind projects to easily game the system.

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"Wind power projects often obtain additional production subsidies, and these subsidies allow the wind project owner to profit even when power prices go negative," the study states.

You can read the entire study here.

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