Wednesday, July 13, 2011

A Tale of Two Realities: Worthless Alternatives

Two articles in today’s Boston Globe:

Evergreen Solar Inc., the once promising alternative energy company that received millions in state subsidies, warned late Monday that its shares will likely be worth little or nothing even if it is able to strike a deal with creditors to restructure its debt.
Three years ago, Evergreen opened a gleaming 450,000-square-foot manufacturing plant in Devens, a former military base in central Massachusetts, promising to create hundreds of new jobs. Governor Deval Patrick’s administration awarded the company $58 million in tax breaks and other aid, one of the largest state incentive packages in recent years, to help persuade Evergreen to expand here and jump-start the state’s alternative energy sector.

A study released by Governor Deval Patrick’s administration this week said the prospects for job growth, lower energy bills, and reduced greenhouse gas emissions justify state-mandated investment by utilities - a projected $5.37 billion through 2015 - in alternative energy, including energy efficiency. Utilities that operate in the state are required to purchase at least 6 percent of their supply from renewable sources such as wind and solar. 

Even when the slap from reality still stings, politicians continue to do what they do best: spend other people’s money. 

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