Original Image It is my belief that as a non commercial educational posting this constitutes “fair use” of the image.
In an earlier posting, I’d pointed out that ‘economic stimulus’ via government spending and mandates tended to avoid profit making investment and cause consumption; and that would be sub-optimal allocation of money. That Keynes was perhaps incomplete in that we needed to have more profitable investment, not just more velocity of money via consumption or loss making “investment”.
It looks to me like Portugal is doing a stellar job of illustrating that point, but the Lame Stream Media are playing it up with a lot of “happy talk” spin.
Ecotretas Catches The NYT in a Whopper, IMHO
In this posting:
He finds that the NYT is hyping as a great leap forward in green investing the increased renewables production in Portugal. Yet the truth is that it is driven by more rainfall making more hydro electric (not some investment gains). Further, the power produced by Portugal from wind at peak and ‘exported’ is coming at the same time everyone else has wind power to dump, so they are dumping it for free.
The New York Times also comments on the fact that Portugal has become a net power exporter. That has in fact occurred, but at a high cost! Portugal has been exporting this energy when the wind is stronger, with it occurring when wind is also strong in Spain. A lot of this exported energy was exported at zero cost, which means Portugal is offering energy to other countries, while consumers/taxpayers are paying almost 93.74 euros per MWh for wind energy feed-in tariffs. According to my calculations, these exports have cost the country 50M euros, only in the first trimester of 2010. Indeed, if no wind energy existed, Portugal would have benefited 216M euros in the same first trimester.
The original has links to supporting information and much more of interest. It’s a good, quick read; so hit the link and be amazed. One of my favorite bits is the chart of growth of renewables over time where the “real” chart has a wobbling downward trend while the “corrected” one is rising with acceleration. Must be a government statistic…