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Well, if the wind farm is needed to meet targets emissions target, then there aren't many options, are there? a) Iowa negotiates the annual guaranteed rate the
by disruptiveink 4y ago
Well, if the wind farm is needed to meet targets emissions target, then there aren't many options, are there?
a) Iowa negotiates the annual guaranteed rate the private entity wants down;
b) Iowa commissions another wind farm or an alternative from another entity, or builds it themselves;
b) Iowa pays up and eats the cost;
c) Iowa pays the rate it promised to the private entity by creating a new tax or by directly or indirectly pass down the cost to consumers (indirect being allowing whatever entities are involved to do so).
This is not really about "renewables", is it? It's the typical public-private partnership dilemma. When entering a PPP, a private entity will want all the profits and no risk. It's up to the state to evaluate whether that is a good deal or not, eg, because they really need it for the greater good of the public they serve and have no hope to get it done in any other way.