THE HIGH COST OF RENEWABLE ENERGY SUBSIDIES

Bill Peacock

Executive Summary

Federal, state and local subsidies for renewable energy are undermining the reliability of the Texas electricity market. And Texans are paying a high price for the privilege of a less reliable market. Since 2006, wind and solar generators in Texas have received about $19.4 billion from taxpayers and consumers. It is estimated they will receive another $15.9 billion over the next decade. Texas policymakers should eliminate subsidies for renewable energy in order to ensure an energy abundant future for Texans.

Key Points

• Texas began subsidizing renewable energy in 1999 with renewable energy credits (RECs).

• In 2005, the Texas Legislature expanded RECs, authorizing the PUC to build the $13 billion CREZ lines for wind and solar.

• Since 2006, wind and solar generators in Texas have received about $19.4 billion from taxpayers and consumers.

• The distortions caused by the rapid growth of wind and solar generation are significantly decreasing the reliability of the electricity grid.