Taxpayers on the hook for $2.2 billion in green energy loan guarantees
There’s lots of red ink on green energy projects receiving government loan guarantees. The Government Accountability Office has a new estimate of the cost of loans and loan guarantees issued by the federal government under a 2005 law, and it adds up to $2.2 billion. Stephen Dinan of the Washington Times reports:
“As of November 2014, DOE estimates the credit subsidy cost of the loans and loan guarantees in its portfolio — that is, the total expected net cost over the life of the loans — to be $2.21 billion, including $807 million for loans that have defaulted,” the GAO said in its report to Congress.
The green program loan guarantees were created in a 2005 law and boosted by the 2009 stimulus. The first applications were approved in 2009, and through 2014 the Obama administration had issued some 38 loans and guarantees, covering 34 projects ranging from nuclear power plants to fuel-efficient vehicles to solar panels and wind-generation technology.
The Energy Department said it considers the loan program a success.
Only in the never-never land of government are billions in losses considered a success.
This calculation does not include the cost of inflated electricity bills borne by consumers, who pay for expensive “green” electricity from windmills, solar farms, and other boondoggles, that utilities are required to purchase. That guaranteed market for expensive electricity is why...
…the more than 20 projects up and running that focused on energy generation or transmission have done well, with not a single default, the investigators said.