Renewable energy companies in Texas have accepted approximately $66 billion in government subsidies in the last decade despite claims that they are inefficient and unprofitable, according to a RealClear Energy article.
Robert Bryce asserts in the article that, despite billions of dollars spent on renewable energy incentives, the Texas energy grid has weakened as a result of the subsidies and tax breaks.
"Oil and gas energy producers pay almost 54 times more in annual tax contributions than renewable energy sources," Bryce wrote. "The question for Texans remains: How can renewable energy sources produce so little energy during peak demand situations and offer so little reliability in moments where the entire energy grid's stability is in question and yet, still consistently receive billions of dollars in government subsidies?"
According to a separate report by the Texas Policy Foundation, energy subsidies do not promote innovation; rather, they build industries and sub-industries that are entirely dependent on government funding.
"Energy subsidies rarely foster innovation, but they always create industries and subindustries that depend on government support for their existence and profitability," according to the Texas Policy Foundation report. "Politically connected businesses rake in undue profits while taxpayers foot the bill and lack the knowledge to hold their elected leaders accountable for this cronyism."
Furthermore, the Texas Public Policy Foundation claims that while all energy subsidies distort energy markets, renewable energy subsidies for wind, solar and biofuels are the most detrimental as these subsidies result in wasteful usage of existing electricity generator assets and higher transmission costs.
"Wind and solar subsidies lead to inefficient use of existing assets, increased transmission costs, and artificially low or negative wholesale prices that drive out reliable electricity generation and threaten our power grid," according to the Texas Policy Foundation's report. "Biofuel subsidies drive up the cost of refining fuels and increase the cost of food. These diffuse energy resources also consume millions of acres of land, leaving less land for wildlife and other productive uses."
According to ERCOT data, subsidies have played a critical role in the growth of intermittent wind and solar power at the expense of more reliable thermal generation with wind power, surpassing coal and nuclear, with solar power more than tripling during the last decade.
"From 2010 to 2019, solar and wind received the most federal subsidies, about $34 billion and $37 billion, respectively, while coal received $13 billion and oil and natural gas received $25 billion," according to a Texas Policy Foundation report.
A Life:Powered analysis of EIA data also shows that, in conjunction with increased taxpayer subsidies, the installed capacity of intermittent wind and solar generation has increased by 193% over the last decade, at the cost of more stable capacity (-4.4%).
Life:Powered also reports that in 2019 most areas in the United States experienced lower electricity prices due to lower natural gas prices. In Texas, however, energy prices rose by 13% from their average due to massive distortions in the Texas energy market caused by renewable subsidies. Wind energy generators have received 17 times more subsidies per unit of electricity generated than the average for traditional energy sources since 2010. Solar energy generators have received 75 times more subsidies per unit of electricity generated than the average for traditional energy sources since 2010.
Additionally, WC Texas News previously reported that despite the promise of boosting employment, solar and wind developers receiving taxpayer subsidies rarely meet the minimum work requirements established by Texas law, forcing them to pursue a jobs creation waiver.
According to data from the Texas Comptroller, no business obtaining tax abatements in west-central Texas has created the requisite 10 jobs as required by state law, instead opting for job creation exemptions.