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Natural gas vs. wind feud brews in Texas

By | March 2, 2010, 6:33 AM PST

Texas is increasingly relying on wind turbines to create electric power and that’s annoying the state’s natural gas industry.

The Wall Street Journal chronicles the wind power vs. natural gas feud. The Journal notes how the argument that wind power is a compliment to other fuels doesn’t hold up. Turns out wind can be a replacement for other fuels. Meanwhile, the wind turbine industry has matured rapidly to the point where it can be a replacement.

And the real kicker: Tudor Pickering & Holt, a Houston investment bank, contends that the natural gas used to power electric plants could fall by 18.5 percent by 2013 as plants sit idle.

So what’s this scrum about?

Government subsidies in a nutshell. The wind industry argues that it can’t make payments when it fails to deliver the power promised. Other energy producers pay those fees. It’s an interesting argument since wind can be fickle.

Texas is just leading the wind parade with 9,400 megawatts of wind-power generation capacity. These battles over wind power will start popping up elsewhere too.

Here’s a look at a few key stats about wind power (2008 data) from the American Wind Energy Association. The stats show where the wind vs. fossil fuel battle will play out next.

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Larry Dignan

About Larry Dignan

Larry Dignan is editor-in-chief of SmartPlanet.

Larry Dignan

Larry Dignan

Editor-in-Chief

Larry Dignan is editor-in-chief of SmartPlanet and ZDNet. He is also editorial director of TechRepublic. Previously, he was an editor at eWeek, Baseline and CNET News. He has written for WallStreetWeek.com, Inter@ctive Week, New York Times and Financial Planning. He holds degrees from the Columbia University Graduate School of Journalism and the University of Delaware. He is based in New York but resides in Pennsylvania.

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Larry Dignan

Larry Dignan
Larry Dignan does not hold any investments in the companies he covers.
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RE: Natural gas vs. wind feud brews in Texas
So government subsidies are warping the free market economy leading to inefficiencies and higher cost to the consumer?
Posted by Repeal
2nd Mar 2010
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RE: Natural gas vs. wind feud brews in Texas
no. government subsidies are helping new and needed technology get a start against an entrenched and rich technology that would like to keep its monopoly. and nonsencical comments about the 'free' market indicate that the writer doesn't know that the free market hardly ever existed. should he read his history of the united states
he might have a bit of trouble ever discerning where the free market was in the building of the large industries and businesses. the antitrust laws did not come about because the market was free.
Posted by stilt21
2nd Mar 2010
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RE: Natural gas vs. wind feud brews in Texas
As long as we continue to be subservant to the dominating energy companies we will remain dependant upon gas and oil as we know it now. Given the ability to produce the Wind, Solar, thermal energy WILL produce an alternative to this domination and hopefully get this Great Nation back on track as the leaders that people can depend upon. GO TEXANS, GET THAT WIND GOING. We know you have an abundance of coal also.
Posted by WAArnold
2nd Mar 2010
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The wind companies can pay the gas companies.
Instead of making the wind powered plants pay a fine, they should just pay the gas powered plants to produce the electricity when they are unable to deliver at promised rates.
Posted by youzer
2nd Mar 2010
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wind can be fickle.
wind can be fickle

Solution: create the wind.

Place an array of huge electric powered fans in front of the wind blades, and have those fans start up automatically when the natural winds don't blow to product enough wind power. That way, the wind power people remain happy and the fossil fuel people also win.

wink wink
Posted by adornoe@...
2nd Mar 2010
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