DEBT AND NEW ENERGY

U.S. Debt Deal Kills Off Prospects of Renewable-Power Support
Jim Efstathiou Jr. and Christopher Martin, August 5, 2011 (Bloomberg News)

"U.S. government support for renewable energy may plunge from record levels, setting back the use of wind and solar power before they can compete on their own with oil, gas and coal…Direct spending, tax breaks and research funding pushed federal renewable-energy subsidies to [a record] $14.7 billion in 2010 [up from $5.12 billion in 2007]…

"The deal on a debt-limit increase that Congress and President Barack Obama struck to avert a U.S. default would result in at least $2.1 trillion in spending cuts…Additional savings of at least $1.2 trillion would come from enactment of a deficit-reduction bill…"

New Energy was finally getting its due - and then came the debt bill (click to enlarge)

"The Treasury Department has paid out $7.78 billion in grants to developers of wind, solar, biomass and geothermal energy under an incentive that was created in the stimulus bill and lapses at the end of the year…Subsidies are expected to decline beginning this year, and will fall 77 percent by 2016…

"…[U]nless Congress approves an extension…[the] production tax credit, used mainly by wind- farm developers, runs out at the end of 2012. The investment tax credit, which goes primarily to solar and geothermal projects, ends in 2016…Other subsidies for energy, which go both to renewable sources and oil and gas, may also be targeted by the congressional debt-reduction panel…"