Debating wind power cost estimates – 1

On the Morning of October 15 the Institute for Energy Research in Washington DC released a report I’d written about wind power cost estimates sponsored by the federal government. (Links available here.) Later that day the Michael Goggin of the American Wind Energy Association, the lobbying organization in Washington DC that represents the wind energy industry, posted a response on the AWEA website: “Fact check: Fossil-funded think tank strikes out on cost of wind.” I’m considering points made by the AWEA response in a series of posts.

Before we get to substantive issues, I’d like to emphasize that I have no particular objection to wind energy technology. In fact, geek-wise I think it is kind of neat that tall, graceful, well-designed machines can make electric power out of the wind. However, I do object to a wide range of federal energy policies including the Production Tax Credit. Like most other government subsidies, the PTC distorts the electric power market and makes most people worse off.

Okay, still not yet to the substantive issues, but consider Goggin’s opening paragraph:

After two failed attempts to attack wind energy earlier this month, the fossil-fuel-funded Institute for Energy Research (IER) has now struck out swinging (strikes one and two are documented here). Strike three comes from a report written by Michael Giberson that relies on obsolete data and largely regurgitates anti-wind myths that have already been debunked. As a result of those mistakes, IER’s report overstates the actual cost of wind energy by around 100%.

[Links are carried over from the AWEA website for the convenience of the interested reader.]

The words “fossil-fuel-funded” link to a website ran by the Natural Resources Defense Council intended to finger the groups “trying to stop clean energy and new jobs” and reveal (some of) these groups sources of funds. It notes that the Institute for Energy Research (IER) leadership includes people who had worked for large energy companies in the past (Enron, Koch Industries) and that IER had taken money from ExxonMobil. (I tried to dig a little deeper by using resources relied upon in a Daily Kos article published a few days ago about links between the Koch brothers and various policy and advocacy groups, but didn’t turn up anything more on IER.)

Now I didn’t personally speak to anyone from Koch Industries or ExxonMobil about any of this work, and I don’t personally care much where IER gathers its money from (as long as I get paid). It also doesn’t matter to me where AWEA gets its money.

In any case, if you want to dismiss my report because IER once took some money from ExxonMobil, then you should read this short essay instead.

The rest of Goggin’s opening paragraph asserts I relied on obsolete data and anti-wind myths to make my case, and as a result I overstate the “cost of wind energy by around 100%.” These points get into substantive issues, I’ll take them up in subsequent posts.