Wind energy subsides and other public incentives cause “Wait and See Experiment” in Texas. The state is now home to one of the largest sources of wind energy production in the world.
- Texas has invested about $7 billion in a sprawling wind power network that spans nearly 4,000 miles.
- Alternative energy projects have benefited mostly from generous public investment, including direct subsidies and tax incentives.
- More private firms, like Google, Walmart and Microsoft have also channeled resources into the emerging wind sector.
- Analysts point out that the slow trickle of capital reflects the maturing of wind power, even as alternative energy still remains very reliant on public support.
- T. Boone Pickens was forced to abandon a massive wind farm initiative in 2012 knocking him off Forbes 400 list of richest Americans the very next year.
Texas is taking a huge risk by diving so deep into wind technology. Relying on the alternative energy subsides and other incentives, many investors in this new technology are running a risk of entering too early into the market or competing in the wrong market all-together. Subsides can have a negative impact to the economy by working against free markets.