Raleigh-based entrepreneur Bob Luddy offered the following prepared remarks for today’s Affordable & Reliable Energy Policy Forum at the state Legislative Building. The American Energy Alliance moderated the discussion.
Modern-productive manufacturing requires sophisticated machinery powered by low cost electricity. Laws that increase the cost of power undermine American manufacturing and international competitiveness.
Sustainability is an important secular idea, but it only makes sense if it’s market-based. Government required purchases reduce incentives to create cost effective sustainable solutions.
In many cases, efforts toward sustainability increase capital costs that might otherwise be used for innovation. For example, in the case of wind and solar power, total capital costs for electric generation are increased, because base load generation must still be provided to cover times that the wind is not blowing and/or the sun isn’t shining.
Other problems emerge in the case of wind generation. The laws of physics remain inviolate, including the cubic function of aerodynamic drag of the blades, such that when the wind is blowing at half speed, only 1/8 the rated power is generated.
Increasing electric utility rates for all users, including manufacturers, has serious adverse impacts on our economy.
Green energy may be a noble goal but it only makes sense if it’s cost effective and market driven. Subsidies are often sold as near term, but they are perverse incentives and most often become permanent.
Many industries, including CaptveAire, have spent enormous amounts to reduce the use of energy when it’s made economic sense and is truly sustainable.
Government mandates of this nature undermine indigenous manufacturers and their ability to compete in the market through innovations not government-imposed mandates.
Efficient manufacturing cannot flourish in states that subsidize inefficiency and punish productive manufacturers.
