• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours How Far Have We Really Gotten With Alternative Energy
  • 8 days They pay YOU to TAKE Natural Gas
  • 5 days What fool thought this was a good idea...
  • 7 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 3 days A question...
  • 14 days The United States produced more crude oil than any nation, at any time.
Oil Ticks Higher on Inventory Draw

Oil Ticks Higher on Inventory Draw

Crude oil prices moved higher…

Rural U.S. Falls Behind With Energy Transition

Electric cooperatives are still relying on coal for about a third of their output, the Wall Street Journal has reported, citing the latest data, for 2019.

Co-ops, which serve some 42 million people in the West in Midwest, sourced 32 percent of their electricity from coal two years ago, versus 23 percent for the United States as a whole. This, according to the report, is because co-ops have less motivation to shift to wind and solar because of the lack of investor pressure on them.

This, however, seems to be changing, as some co-ops want to make the transition. This is creating internal tensions in the electric co-op industry, the WSJ notes, and some co-ops are breaking away.

Be that as it may, it would be really difficult for co-ops to find the money necessary to invest in wind and solar farms: co-ops do not pay federal income taxes, which makes them ineligible for renewable power tax credits. They also cannot raise equity to finance projects because they are owned by their customers. Incidentally, in some parts of America, these same customers are employed in the coal industry.

“The energy transition has been lagging for cooperatives,” the WSJ quoted Duane Highley, chief executive of Tri-State Generation & Transmission Association, a co-op with more than a million customers in New Mexico, Colorado, Wyoming, and Nebraska. “But part of that is because we don’t have the same financial tools.”

Highley told the WSJ some members have left the organization as they seek to focus on cleaner electricity generation. But for many others, it’s more than a question of clean versus dirty, according to Chris Riley, CEO of wholesale electricity trader Guzman Energy, who spoke to the WSJ. It’s a question of hurting local economies, even if the effect is limited in geographical reach.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News