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The Obama Administration is coming under fire for providing subsidies to renewable energy sources, such as solar, wind, and geothermal.
And not for the first time.
The latest tiff results from a $528 million loan to Solyndra LLC. Despite receiving federal funds, the private, California-based solar panel maker went belly up on Sept. 1, filed Chapter 11 bankruptcy protection, and laid off every one of its more than 1,100 workers.
U.S. Secretary of Energy Steven Chu has gotten more political flak from the loan program in recent months. Political opponents claim it's an example of government waste in the making.
Since 2009, Washington has doled out some $16 billion in 28 loans. The Energy Department says this loan money has resulted in 60,000 jobs.
However, with $6 billion being committed in only the last few weeks (to beat a Sept. 30 budgetary deadline), disasters like Solyndra are something best avoided when Chu speaks on renewables.
Just as predictably, they are likely to figure prominently in the rhetoric coming from the other side.
But the current debate that the Solyndra failure has prompted brings a broad question: Can renewable energy sources make it in the market without a significant push from the government?
Not initially.
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About the Author
Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.
well…Everybody talks about Solyndra…this is the "New Fashion"…oki…Why no talking about ENRON??? The biggest BK in the USA History?…well…after that the subsidies for the coal Energy continued… The Coal Fuel got 100 times more subsidies than the renewable energy and if you consider the few money that the Clean Energy got…they made some enormous steps to get close to the parity grid (around 2015 – In Italy 2013!!) A lot of Subsidies for the Dirty Energy Coal and Nuke…Look what's going on in Japan…and what about the last disaster of British Petroleum??…and all the time some big boats crashes in… Read more »
If you want independence and your OWN ENERGY, then there should be NO SUBSIDIES FOR ANY GROUP – oil, coal, or renewables! It is not the government's role to pick winners and losers in a free market which is what our economic system has always stood for. It is up to free markets to determine what works and what to support – what is economically viable and makes sense. The government needs to STAY OUT OF IT COMPLETELY!!!
Dr Moors, Your latest E
Dr Moors, Your latest EA recommendation of Questar [STR] trades at less than $20 a share. In July 2008, it traded at $70 a share. What makes it a good candidate now??
When the fossil fuel and nuclear industry jumps up and down crying like a bunch of babies that have just had their bottle taken away concerning renewable energy subsidies it is with out a doubt the pot calling the kettle black. The other day I saw a mother pick up their child from soccer practice in a hummer and all the other parent had big giant gas hogs also. It is their right to drive what ever vehicle they choose but not when the fuel for those vehicles cost the US tax payers tens of billions of dollars every year… Read more »