"White House economic adviser Larry Kudlow said Monday that plans were in the works to scrap subsidies for electric cars and other renewable energy items, Reuters reported." The Washington Times
What does this mean for Georgetown's renewable energy contracts? Probably nothing as politicians almost never make any law or policy retroactive and Georgetown's contracts are for 20 and 25 years.
If the law or policy were made effective on a certain near-term date, then the companies involved would scramble to reopen negotiations with the city as their existing contracts would likely be major losers for them.
It will be a different story for any new renewable energy contracts. The electricity price they would have to sell for would likely be uneconomical compared to gas, coal and nuclear generated electricity under the existing business model. Substantial cost reductions in the installation and production of electricity would have to be effected to be competitive.
No comments:
Post a Comment