Wind Energy will in the future becomes the electrified growth of agribusiness. It will give small farmers the economic advantage to cultivate while making profit selling electricity to distributors like Eagle Electric, TXU Energy, Con Edison & National Grid.
This can all happen if president Obama follows his commitment and deliver that $150 billion he promised on November 5, 2008. The president had promised us that he’ll invest $150 billion in renewable energies over 10 years. That $150 billion can very well be invested before the end of his first term or within his second term if he is reelected.
Renewable Energy World. came out with a report stating that “Overall, new investment is expected to finish 2009 between US $95 billion and $115 billion, a drop of between 26% and 39% on last year’s total of $155 billion, says New Energy Finance.”
The suggestion isthis; we double that $6 billion that is going into loan guarantees for renewable energy and electric transmission technologies to $12 billion. We cut smart grid from $11 billion to $5 billion. We do this from a view point of priority not that it’s not important. So that the people understand smart grid is described by Wikipedia as “a form of technology delivers electricity from suppliers to consumers using two-way digital communications to control appliances at consumers’ homes; this could save energy, reduce costs and increase reliability and transparency”.
Now, let us consider offering some of that $11 billion guarantee loan to small farmers to build their own electrical grids within the scope of their plantation. We’ll offer them those low interest loans to built Wind Energy mills on their fields. They will in turn sell that energy to a distributor that has the capacity to carry that energy anywhere it is needed.
Whether or not the distributors are foreign or domestic doesn’t matter. What matters is that the small farmers make a modest profit selling that energy to the distributors. The small farmers profit will depend on market value of Wind Energy but if we look at it from a view point of long term prospects, the small farmers will have more to gain than to lose.
That idea would have created a lot more jobs than we would have ever anticipated. It would have given ways to environmental friendly technologies to be develop, it would have reduced the cost of production to many of the distributors which would have cause price to fall, making electricity easier to afford. Access to electricity for high speed rail would not have been too much of a concern since producers surplus would have risen the price equilibrium for Wind Electricity would have depreciated. Consumer demand would have increased since Wind Electricity as an alternative would have been more affordable but it would not have caused price to rise if small and big farmers across the country participate in this venture capital growth.
We can say if small and big farmers across America were to start investing in Wind Energy Power they would have created a supply chain that is bigger than any distributors could have ever created. This could have facilitates the transition for us to become less dependable on oil because the more accessible the alternative energy the higher the incentive to create technologies that are environmental friendly.
The chart below shows where we are in term of renewable energies in 2008. The New Energy America plan has been branded “a bold new national goal on energy efficiency” on Obama’s web-site. The plan proposes a long term extension to the production tax credit and a nationwide renewable portfolio standard requiring that 10% of electricity comes from renewable energy sources by 2012 and 25% by 2025. Through the plan Obama has committed to extend the production tax credit, currently worth 2 cents per kWh for 5 years. The key question – is this enough to give the renewable energy industry the same confidence as Obama?”
While Obama has extended over a billion dollar to educate the public on renewable energy, the new budget plan for 2012 that was proposed aims to
cut roughly $ 4.4 trillion. And among that $4.4 Trillion a deduction of $800 billion is set to cut specifically from the new healthcare bill (PPACA) an addition to education. Below you’ll find a link to CNN emphasizing precisely on what we’ve just mentioned above. And also the same story was talk about on Center for American Progress where it was mentioned that those budget cuts would strangle innovation.
(CNN) – The House of Representatives passed the Republican leadership’s 2012 budget proposal Friday in a 235-193 vote, approving a blueprint for cutting federal deficits by roughly $4.4 trillion over the next decade while radically overhauling Medicare and Medicaid. The measure is strongly opposed by President Barack Obama. It has little chance of clearing the Democratic-controlled Senate.
This next chart below reviled to us a decline in total investments for U.S renewable energy for the year 2007. It also indicate to us that in 2009 global investments for renewable energy fell by 53% resulted to $13.3 billion compare to previous year 2008.
According to current data in relation to The Proposed budget cut of 2012 some of which is directed towards the sector of weatherization programs, energy efficient appliance rebates, energy conservation competitive grants and Title V energy conservation block grants have been cut completely. Sources for that claim can be found at Calfinder
The question now becomes if the proposed cuts will eliminate some of the funds from the energy sector, and if it does will that effect Obama’s renewable energy plan for 2012? Is it possible that we may experience a drop on investments similar to this graph below?
This idea is good for US agribusiness but it’s not an idea that is tailor to US agriculture only, Haiti and addition to many other countries can follow the same routine as well if they haven’t already did. A small country like Haiti can benefit a great deal if the Haitian Government were to structure a similar plan. In fact Wind Energy would have been much better in Haiti since it is a country of many mountains. The equipments that are made to consume Wind Velocity to electricity function much better when the wind is not too week. This could have created a lots of projects in Haiti, training facilities, equipment specialist and jobs.