Alternative Energy and Federal Credits

So many people mentioned this Tom Friedman piece on upside-down energy policy that I had to link it. Friedman is right about how stupid it is for Congress to have continued credits for gas and oil and stopped those for solar and wind. It's also worth noticing the testimonies in the piece about how alternative energy in the US, especially wind, attracts investment capital only with tax deals to offer investors.

“It’s a disaster,” says Michael Polsky, founder of Invenergy, one of the biggest wind-power developers in America. “Wind is a very capital-intensive industry, and financial institutions are not ready to take ‘Congressional risk.’ They say if you don’t get the [production tax credit] we will not lend you the money to buy more turbines and build projects.”

Friedman's ending is painfully true: "The McCain-Clinton proposal is a reminder to me that the biggest energy crisis we have in our country today is the energy to be serious — the energy to do big things in a sustained, focused and intelligent way."