Various provisions in the federal income tax treat energy producers more or less favorably than other businesses. By changing the after-tax rate of return on investments in the energy sector, the Tax Code may alter the long-run supply of specific types of energy.
In general, the income of all participants in the energy sector is subject to income tax of one form or another. Two notable exceptions arise in the generation and sale of electricity. Governmental agencies (such as the Tennessee Valley Authority, the Bonneville Power Administration, and municipally owned power companies) account for approximately 14 percent of the electricity sold in the United States. (more…)
In most countries, geothermal resources are classified as natural resources belonging to the government. Since the 1980s, there has been a worldwide trend to corporatize and/or privatize government commercial activities. Whereas the geothermal resources in the United States have been commercially developed by the private sector since the 1960s at The Geysers, other countries, notably The Philippines, Indonesia, and New Zealand, did not started private commercial geothermal projects until the 1980s. These private power developers are known as independent power producers (IPPs). There is a perception that the private sector is more efficient than the public sector. The efficiency arises from the increased flexibility of the private sector and its accessibility to commercial funding. (more…)
In 2006, total world wind generating electricity capacity was around 72,000 MW, producing some 160 terawatt-hours (TWh) per year of electricity. As of the end of 2006, the top wind producers were Germany, with 20,622 MW; Spain, with 11,615 MW; and the United States, with 11,575 MW.
Even so, wind accounts for only about 1 percent of the world’s total energy use. (more…)
