The Green Skeptic on Payne Nation - Blowin' in the Wind?

Charles Payne of Payne Nation

This evening I spoke with Charles Payne at Payne Nation radio about wind power, production tax credits, and the benefits of removing subsidies for all energy. And my economy song of the day is "Mind Games" by John Lennon.

Here is the show in mp3 (I start at around 10:00):

The Green Skeptic on Payne Nation

Why We Deserve to Lose (The Race for a New Green Economy)

No offenths, as the 4-year-old son of a friend used to say before offering a critical observation, but we suck.

And we deserve to lose the race for a new green economy to China. Why?  Because we have systematically destroyed our opportunity to lead through bad decisions and illusion, sold ourselves to China, and blanketed ourselves with cheap and toxic products bought from China.

(No wonder the Chinese are laughing at us in this political ad Joshua Brown wrote about on The ReformedBroker.com this weekend. Of course, as Josh pointed out in his post, China needs us as much as we need them.)

Then there is this disturbing item from an editorial in the New York Times this morning: "Until a little over three weeks ago, the Interior Department had approved more than 73,000 oil and gas leases since 2005, but only one offshore wind energy project and not a single solar project."

Don't get me wrong, I support domestic oil and gas development -- both offshore and on land -- as long as it is conducted using the highest environmental standards and safeguards.

But why has it so long to approve a project like Cape Wind off the coast of Massachusetts while oil and gas leasing has accelerated?

Two things have been happening since 2005 when Congress directed the US Department of the Interior "to approve enough wind, solar and other projects on public land to produce 10,000 megawatts by 2015 — enough to heat, cool and light five million homes."

The first is the so-called "Haliburton loophole," which exempted natural gas drilling companies from the Clean Water Act after the companies raised a "frackas" over having to disclose chemicals used in their fracking process.  They claimed it would endanger their proprietary formulas.

A September 2009 report issued by the General Accountability Office (GAO) found that 28 percent of drilling permits issued from 2006 to 2008 (about 6,100 applications) were expedited by the Bureau of Land Management through this categorical exclusion.

Here's an interesting list of exemptions the oil and gas industry currently enjoys from the Federal government compiled by the Environmental Working Group.  Any one of these can help accelerate the approval process.

By comparison, the Cape Wind project was subject to meeting a plethora of state and federal agency standards and required almost nine years to get a final permit.

Interior Secretary Ken Salazar, to his credit, has approved six large-scale solar power projects on public lands in California and Nevada, and has moved to close the loophole and reform the process for reviewing all projects on lands under Federal management.

But renewables also continue to be subjected to unclear and inconsistent signals in terms of subsidies and tax credits, which makes investors and project developers wary of going too deep.

As the Times editorial asserts, "When the production tax credit expired at the end of 2003, development of newly installed wind capacity fell from 1,687 megawatts to less than 400 the following year."

Meanwhile, as an Environmental Law Institute study last year illustrated, fossil fuel development benefited from approximately $72 billion in subsidies and tax credits over a seven-year period (2002-2008), while subsidies for renewable fuels totaled only $29 billion overt the same period.

This kind of unlevel playing field and unfair advantage is just another reason why we have already lost the race with China and others on renewables. 

In fact, we better stop thinking about it as a race at all and begin thinking about how best to cooperate with our competitors before we are left out of this new economic opportunity altogether.

Cleantech Innovation in China: Insights from the Cleantech Group

The Future of Cleantech?

Today, "Made in China" increasingly means innovated in China.  So argues a new report from the Cleantech Group released last week, "Cleantech Innovation in China."

China became the world’s largest cleantech investor in 2009, pumping government investment into R&D and innovation incubators, but also attracting an increasing share of private money, as well as interest from the global marketplace.

According to the report, however, Chinese companies still need to rely on multinational corporations from other countries with a tradition of cleantech innovation and expansion for their success. This points to some potential opportunity for US-based companies.

In addition, China faces increased resource constraints and troublesome levels of pollution, water shortages, population growth, and other environmental risks that may hinder its progress over the long-term.

"Energy insecurity and poor environmental quality are threats," according to the report. "And addressing them is not only a key factor in managing the risk of domestic discontent but also a prime opportunity to create local jobs and develop local expertise."

Key points of interest  to readers of The Green Skeptic:

• Patent filing in China grew 29.7% in 2009, bucking the unprecedented decline in global patent filings due to the global economic crisis. China is now 4th in the world in patent origin in six key clean technologies including wind, biomass, and cleaner coal.
• The Chinese government has increased R&D spending while decentralizing R&D institutions and encouraging partnerships with the private sector, preparing China to be especially competitive in the world market. 
• China is innovating beyond the solar sector. 70% of cleantech venture capital deals between 2006 and 2009 were outside of solar. Materials science, agriculture, water and wastewater, energy storage and energy efficiency have emerged as key areas of interest.
• For the first time, in 2009, China accounted for the largest share of money raised from cleantech IPOs (69%), well ahead of the US’s 26%.  By number of deals China also had the majority with 17 of the 32 global cleantech IPOs tracked in 2009. Of the current crop of Cleantech IPOs on the ChiNext exchange in 2010, many are from water and energy storage.

We agree with the authors of the report that "China’s level of cleantech innovation today should not be over-inflated," but neither should its potential be underestimated.

As the report suggests, "the question is no longer whether a China strategy should be adopted for cleantech innovation, but rather how it should be adopted."

Download a copy of the report summary here.

Related articles by Zemanta

• 10 Reasons Why China is the Cleantech Leader (solarfeeds.com)
• Why China has already overtaken the U.S. in cleantech (cleantechblog.com)
• Terry Cooke on China, Cleantech and US Readiness (thegreenskeptic.com)
• Will China Eat Our Cleantech Lunch? (xconomy.com)

Clean Tech: Wind Breaker; It's All About the Grid

The New York Times has a good piece this morning examining the major obstacle in switching to wind power: the outmoded electricity grid.

What's needed is an electricity transmission superhighway, says one Federal Energy Commission rep.

Read the full article:
http://tinyurl.com/5rjzkl

Clean Tech: Village Green Energy and Wineries Team Up to Promote Renewables Through Facebook

Four Sonoma and Napa County, California, wineries are trying to power their operations with renewable energy.

Now you can help them by loading the "Green My Vino" application on Facebook.

"Green My Vino" allows Facebook users to promote environmental change in the wine business. The application, developed by Village Green Energy, creates three free gifts in Facebook, representing 1, 5, and 10 minutes of renewable energy.

When a user gives the gift, Village Green Energy purchases an equivalent amount of renewable electricity from a wind farm or solar array on the Facebook user's behalf, according to Village Green. If Facebook users pass 10,000 minutes, the first winery will convert to green power.

Seems like a tall order, but it is based upon the success of other applications with high volume of use and effectiveness, such as the Lil' Green Patch, which helps save rainforest as friends give each other cartoon plants.

To date, according to the application developers, the Lil' Green Patch community has saved 29,259,567 square feet of Rainforest by using sponsorship revenue from advertisers to make donations to the Nature Conservancy's Adopt an Acre program.

The first four wineries to participate in Green My Vino are Iron Horse Vineyards, Girard Winery, Windsor Vineyards, and Windsor Sonoma. Village Green intends to recruit additional wineries once the original four have converted.

"We jumped at the opportunity to participate in the application," said Pat Roney of Windsor Vineyards. "'Green My Vino' gives the community the opportunity to interact with businesses and make their voices heard. When people participate in the application, they're telling us that clean energy is a priority for them, and we'll make supporting renewable energy a part of our commitment as a business."

Village Green Energy enables households and businesses to purchase renewable energy from wind farms, solar arrays, and other renewable technologies through the purchase of Renewable Energy Certificates (RECs), the legal rights to renewable power.

Clean Tech: ZapRoot Picks Apart the Pickens Plan

ZapRoot, which bills itself as "an unconventional bite-sized news show that covers the fast changing world of the modern Green Revolution."

Like other web tv news shows it's a little bit snarky, a little wacky, and treats you to little clips of humor that broadcast news shows could not get away with (see the "documentary footage" in the show below. Host Jessica Williamson is no Lindsay Campbell or Julie Alexandra, but her spunkiness may be infectious. (And oh, that accent...)

Here is Jessica on the Pickens Plan (and rumors that it may be a bait and switch play to get his hands on water):



I'm still picking through the Pickens Plan and Al Gore's latest call to action and will have a post to share my thoughts before the weekend (I hope; it's been a busy few weeks).

Here is the Pickens Plan video; judge for yourself:

Clean Tech: The Economist Looks at the Future of Energy

The energy landscape is changing, says The Economist, but where is it heading?

This week's issue (21 June) has a special report looking at the options facing the world, including alternative sources and

The market for energy is huge. Estimated at US$6 trillion a year, it accounts for about a tenth of the world's economic output -- and by 2050, power consumption is likely to have doubled from today's levels. High fuel prices and worries over energy security and global warming mean that a technology boom based on alternative energy may soon be upon us.

Wind and solar both are approach cost parity with traditional sources, at least in terms of new development. Biofuels caught on and we were all heading to Abilene with them, until some folks pointed out the issues with corn- and other food-based sources. And even electric cars and nuclear power seem to be rising from the dead.

It's clear the future of energy must change if economic development and prosperity are to continue.

The Economist report looks at the full range of alternative energy options that may fuel the new green economy and asks the critical question, can they break our addiction to oil and coal?

Clean Tech: Wind Energy ETFs Will Soon Offer Investors Opportunities to Tilt at Windmills

Tate Dwinnell at Self Investors, LLC, reported last week both PowerShares and First Trust Advisors have filed docs with the SEC to provide Wind Energy ETFs (exchange traded funds):

"The PowerShares Global Wind Energy ETF requires a minimum market cap of 200 million and will likely include some or all of the big wind players such as Vestas Wind Systems (Denmark), Clipper Steam Turbine (China), Gas Turbine Efficiency (Sweden), Gamesa Corp Technologica (Spain), Windflow Technology (New Zealand) or Wind Energy America of Eden (US).

"The First Trust ISE Global Wind Energy ETF will be made up of 2/3 pure plays and 1/3 of companies with a portion of their sales from wind and include companies of all sizes. Countries with the most installed capacity of wind power include Germany, US, Spain, India and China with China leading the growth by tripling its capacity in 2007 over 2006. Some expect China to be the leader in wind power generation in just a few years.

"Currently, the best way to play wind with a diversified strategy is through the Market Vectors Global Alternative Energy ETF (GEX) which lists Vestas Wind Systems (Denmark) as it's largest holding at just under 13% of the fund."

This is good news for investors looking for a way to ride the wind wave. Currently, large-scale wind is one of the most viable alternative energy solutions and is on a par with new coal generation capacity in terms of costs.

Clean Tech: Alternative Energy Execs Dream Of Oil Crunch (Reuters)

Gerard Wynn of REUTERS NEWS SERVICE writes from London that "while most companies are watching soaring oil prices with an eye on rising costs some renewable energy executives are licking their lips at the prospect of 'spectacular' growth."

Here's the article:

"Oil sped above $135 to a new record for a third straight day on Thursday. That and new forecasts of a higher floor price has some alternative energy suppliers dreaming of an era of peak oil when global crude output starts to fall.

"'Our time is very definitely coming,' said Jeremy Leggett, chairman of British solar power company Solar Century and former environmental campaigner. 'The world is going to be beating a path to our doors ... The oil crunch is coming soon. The drivers are going to be spectacular.'

"Thursday's record oil price knocked world stocks to a one-month low as concerns grew that rising raw material costs would hit companies and consumers in an economic slowdown.

"In their latest rally since May 1 oil prices have risen 20 percent. In that time the MSCI index of the world's biggest stocks is up 1.5 percent, while a ABN AMRO index of renewable energy stocks has climbed 9.5 percent.

"But support for renewables has been jittery after months of hype helped fuel valuations at a time of tight credit.

"In particular, solar power stocks dived as much as 50 percent in January as investors feared that a credit crunch would make 'big ticket' solar panels unaffordable and that over-capacity in the sector could swamp demand.

"'There's obviously been underlying concern in the renewable energy markets that valuations are inflated, (asking) are we in the middle of a green technology bubble,' said Merrill's head of carbon emissions trading Abyd Karmali.

"'Drivers in the oil market leading to higher oil prices, as well as expected more sustained carbon pricing... lead us to suggest that actually alternative energy is going to be commercially viable sooner than people anticipated.'

WIND GOOD, SOLAR BAD

"But even $135 oil is not enough to make all alternatives competitive, said the Chief Economist to the International Energy Agency, Fatih Birol, on Thursday -- using the example of electricity production from the sun called solar PV.

"'We need to see a lot of reduction in the cost of PV.'

"Solar power executives said at a conference hosted by Greenpower on Wednesday that an expected glut in capacity -- to 29 gigawatts of solar module production in 2012 from 3 GW in 2007 according to consultants McKinsey -- would slash prices.

"The solar power industry uses expected year on year increases in power prices -- as a result of soaring oil and gas prices -- to try and plot when solar power without subsidies will be the same price as conventional electricity.

"McKinsey's Christer Tryggestad said such grid parity may be reached as early as 2010 or 2011 in Italy and California.

"But at current oil prices wind has already reached that point, said the IEA's Birol.

"'Many many projects which are on good sites become profitable versus gas,' he said.

"Ad van Wijk, chief executive of Netherlands-based renewable energy project developer Econcern, said wholesale power prices had trebled in the past two years -- as a result of soaring oil prices -- making his on-shore wind projects competitive with natural gas on windy sites, without subsidies.

"'It's the high oil price and especially the outlook that they will not go down,' which means he can get high wholesale prices now, said van Wijk.

"Analysts and industry officials have predicted for decades that the world's oil output may soon plateau but oil companies have downplayed the 'peak oil' theory. BP data suggest the world has proven oil reserves of 1.2 trillion barrels, enough to sustain current output for 40 years.

"Nevertheless, oil firms are using higher price assumptions to plan their businesses, in a sign the forecast floor price is moving up, oil analysts say. BP is using $60 a barrel, for example, while just a few years ago companies assumed long-run prices of $25."

Global Climate Change: Myanmar Satellite Images

Thanks to Paul Kedrosky @ Infectious Greed for these NASA satellite images that illustrate the impact of the Myanmar Cyclone. I hear death toll range of 22,000-66,000. And no early warning for many of these people.

In this day and age of technological advances, one would think major destruction of human life could be avoided through communication.

I know no single event can be tied to global warming, but we probably need to get used to these events happening more frequently with climate change.

As Paul said, "Jaw-dropping."

Vacation Reflections: The View from South Florida

High winds and turbulent waters have kept us off the beach and boats this year in Hobe Sound.

As we retreat to the pool and search for alternative ways to play during Spring Break, it's afforded me more time than usual for reflection.

Real estate is in the dumps down here and sales are sluggish, according to people familiar with the situation. Foreclosures in South Florida continue to rise and the region leads the nation in inflation.

Even so, just driving around here there seems no shortage of development projects happening in Martin County, despite the economic slowdown.

There also seems to be an burgeoning concern about the South Florida environment and increasing sentiment favoring opportunities in the new green economy.

A few examples:

Publix Super Markets has a new organic market play, GreenWise, that is designed to capture a growing healthy food market segment. It started with small sections of shelf space in their regular stores, but is expanding to at least three freestanding locations in 2008.

Martin County has plans to purchase 1,900 acres of the Harmony Ranch and an additional 1,222-acre property near a Florida Power & Light power plant as part of the Comprehensive Everglades Restoration Plan.

Martin County has thus far spent $13.2M of an expected $25M in sales tax revenue for land conservation, according to Jim Sherman, assistant county administrator.

A recently released survey conducted by the South Forida Business Journal indicated that a majority of Florida residents approve of increased spending on the state's solar energy infrastructure.

87 percent of South Florida residents surveyed support such investments to help the Sunshine State seize a solar future. (See article: http://tinyurl.com/23soz4)

Wind projects are also picking up, with St. Lucie Wind leading the way, despite the usual NIMBY hang-ups associated with large wind farms. And Florida's DEP recently commissioned a study to assess the potential for inland wind development. With the wind at 20 mph the past few days around here, it seems an abundant resource.

So, the market fluctuations of the past few days continue to play out and potential bank collapses loom. All of this affects South Floridians, especially those in the housing market, as much if not more than elsewhere in the country.

In terms of what I see here on the Treasure Coast this week, there is little panic and much forward thinking. Of course, it could just be the effects of four days in the sun, but I don't think so.

Update: Representative Tim Mahoney (D-Palm Beach Gardens) on the future of Florida and the Treasure Coast: "We can never be a development-based state again. We cannot build our economy around home building. We're just running out of space. We have to have a new industry; we have to broaden our economy. The things we have to look at that are home runs for us are tourism, eco-tourism, biofuels, biotech."

Clean Tech: Sen. Finance Committee Adds Renewable Energy Tax Credits to Stimulus Bill

Last Wednesday, the Senate Finance Committee included measures to extend the Production Tax Credit (PTC) for renewable energy through the end of the 2009 in its version of an economic stimulus package originally proposed by President Bush.

Under the Committee's bill, wind companies would receive a tax credit, currently 2 cents per kilowatt-hour of electricity generated, for each new wind turbine that goes into operation through 2009.

The tax credit, which also would apply to electricity from solar, geothermal and other sources as well as energy-efficiency rebates, would cost approximately US$5.5 billion. The measures were introduced to the committee by Sen. Charles Grassley (R-Iowa).

"Renewable energy production depends on investment," Grassley said. "Investors need certainty. They won't put their money out for a wind energy facility unless there's a reasonable expectation that tax incentives will continue into the future. For energy needs and for economic growth, we need to continue renewable energy provisions without interruption."

The bill would also extend for one year a credit, equal to 30 percent of qualifying expenditures, for the purchase for qualified photovoltaic (PV) property and solar water heating property used exclusively for purposes other than heating swimming pools and hot tubs.

The proposal extends the energy-efficient existing homes credit, extends the tax credit for the production of energy efficient appliances for two years, extends a credit to holders of clean renewable energy bonds, includes a deduction for energy-efficient commercial buildings, a credit for the construction of new energy-efficient homes and a credit for residential energy efficient property.

It is being reported that the Finance Committee's version of the stimulus package bill may face opposition in the Senate and from the White House.

The American Wind Energy Association (AWEA) applauded the Finance Committee bill. According to AWEA Executive Director Randall Swisher, the bill will be a benefit to wind industry.

"The extension of the production tax credit (PTC) is urgently needed to protect tens of thousands of U.S. manufacturing and construction jobs and create tens of thousands more, and to keep investment flowing into one of the fastest-growing and brightest sectors of our economy: renewable electricity," Swisher said.

"We urge the full U.S. Senate to move quickly to adopt the Finance Committee stimulus package that includes the PTC extension," Swisher continued. "Rapid action is pivotal if wind, solar and other renewable energy industries are to continue to grow, attract large-scale manufacturing investment and create jobs for Americans across the country."

Update: A vote in the Senate on the package has been delayed until next week. The Senate will wait until after the Super Tuesday primaries as Sen. Hillary Clinton (D-NY), Sen. Barack Obama (D-IL) and Sen. John McCain (R-AZ) are all currently campaining in thier bids for the presidency. -- from Renewable Energy Access

Clean Tech: Bush US$2bn to Stimulate Clean Tech Development in...China and India?

"Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources," President Bush said in his final State of the Union address Monday night.

The fund essentially represents a commitment of US$2 billion over three years. Add this to the US$18 billion Bush has already put together over the last seven years, mainly for R&D, and you begin to think momentum is building.

But the latest commitment pales in comparison to the US$10 billion clean technology pledged by Japan in Davos yesterday and US$15 billion from the Abu Dhabi emirate last week. And the Bush $2bn is intended to stimulate clean tech development in...China and India.

The Bush pledge is either arm-twisting or noble gesture, take your pick; but it seems to me we're stimulating the wrong economies here.

We wanted to hear from President Bush that it's time for the US to take the lead in clean technologies, to build our energy security, reduce our dependence on foreign oil, and jumpstart the new green economy.

This on the heals of news from Innovest Strategic Value Advisors, which told their global clients that China is launching a grenade into the camp of the global wind turbine industry with a low-cost option that may just rule the day. Apparently, they got wind of the World Wind Energy Council's (GWEC) claim that China will leap to the top of the list of wind turbine producers as early as 2009.

"For my members now, one of the big issues is to prepare for the onslaught of relatively inexpensive Chinese turbines onto the world market," Steve Sawyer, secretary general of the GWEC, said, adding that no Chinese companies were exporting at present.

"The two that have big export plans starting in 2009 and 2010 are Gold Wind, which has really been the market leader (in China) and Sinovel," Sawyer said.

Meanwhile, the US economic stimulus package that passed the House of Representatives today does not include an extension of tax incentives for alternative energy development here at home. It still has a shot on the Senate floor, where US Senator Maria Cantwell (D-WA) spoke in support of the extension last Thursday.

"They [the incentives] have the desirable benefit of getting immediate short-term results," said Cantwell, "that is -- significant economic activity and new jobs in 2008. And they also result in long term benefits. This is the ideal type of stimulus expenditure for us to make.

"Extension of these clean energy tax incentives provide just the short term stimulus that people and businesses immediately need. And it demonstrates the type of foresighted leadership that the American taxpayers expect."

So, where is our leadership for the new green economy, Mr. Bush? China? India? Abu Dhabi? How does that stimulate our economy? How does that contribute to our energy security?

Global Climate Change: Google's Conversation with Thomas Friedman

Google's Larry, Sergei, and Curly, er, Larry B on climate change in conversation with Thomas Friedman. Amazing that the poverty and climate change agendas are coming together; something we've written about at length on The Green Skeptic.

Connect these conversations with Gates's "Creative Capitalism" and Muhammad Yunus's call for social business and perhaps we can get a new triple bottom line: new energy jobs, poverty elimination, and lessen the impacts of global warming.



You've got to applaud the hubris of the Google guys -- and hubris is what it's going to take to push progress. Push on!

Clean Tech: Small-scale Wind Power May Be Closer to Home

Venture Beat reported this morning about Marquiss Wind Power, which is trying to popularize a roof-top turbine suitable for use by ordinary businesses. This is good news for wind fans (no pun intended; well, maybe...) who want to see wind power brought closer to home:

"The company’s 'ducted' wind turbine looks a bit like a 19 foot tall box fan. Despite its clunky appearance, it’s capable of re-orienting itself according to the direction of air flow, while the ducting is intended to increase wind speed as it approaches the blades.

"At the moment, two models are sold — one intended for areas with wind speeds of 6-10 mph, and another for higher average speeds. The turbines are intended for buildings between one and three stories tall.

"Marquiss received the $1.3 million funding from Velocity Venture Capital, which led, and Strategis Early Ventures. The funding was the Folsom, Calif. company’s first."

Clean Tech: A Mighty Wind Grows 45 Percent in '07

I realized today that I've been giving a lot of space to solar on this blog -- okay, I confess, my obsession with First Solar has been getting out of hand, especially in the first month of 2008! But as long as it holds above my initial position, I'll try to ignore those additional shares I bought before the tumble.

Then it came to my attention (thanks to Triple Pundit) that the American Wind Energy Association (AWEA) last week reported record growth in wind power generation with 5,244 megawatts of capacity installed in 2007 – a 45 percent increase reflecting US$9 billion in investment and 30 percent of all new power generating capacity in 2007.

But not so fast. The same report notes that 2008 "will likely show growing pains as there is a current shortage of wind turbines, a situation that the AWEA sees as a big opportunity for manufacturers and entrepreneurs wishing to get in on a growing market. There’s always a better mouse trap – wind energy technology is ripe for imaginative innovators to not only fill the current need for parts, but to continually make those parts better."

TP adds: "It is also time for government to step up to the plate and push forward in support of alternative energy in a big way. Congress is debating this week the future of alternative energy tax credits set to expire this year with no current provision for renewal.

"While the Energy Independence and Security Act of 2007 recently signed in Congress does provide $2 billion dollars in research for alternative energy, it still pales in comparison to subsidies given the fossil fuel industry.

"Farmers also have a great opportunity to capitalize on wind power generation, 'growing' energy from wind and leaving their corn for food instead of ethanol. After all, not all alternative energy is created equal."

Okay, I feel better now. It's not all solar and I'll try to give equal time to the other alternatives. (Thanks, TP)

Pass the sunscreen someone...anyone.

Clean Tech: Wind Some, Lose Some

Why do people hate wind farms?

Sure they are huge; the turbines have a large footprint, and may even chop up a few birds. But they also generate a heck of a lot of power, and are comparatively free from negative environmental impacts.

From a design perspective the sleek white towers and aerodynamic blades seem, well, elegant and forward-looking.

It's clear that opinions about wind farms, however, blow whichever way the wind does.

When I was visiting some friends in northern New York late in the summer, I learned about objections to the St. Lawrence Windpower project, a project of ACCIONA SA (Other OTC:ACXIF.PK). Even my friends don't want it and speculated about graft and insider deals going on behind the scenes. (I couldn't corroborate any of the latter.)

The project is supported by many small, family farmers in the area as a source of additional income. Objections stem from many weekenders and locals who claim the farms will spoil their viewsheds, interfere with migratory bird patterns, create excessive ambient sound -- there are even some outrageous claims that wind turbines cause cancer or sterility.

Who's right? It's hard to say.

There seems to be little evidence that birds are victims of wind turbines and, as for the other claims, the jury is out on whether turbines or transformers can lead to physical ailments beyond certain setbacks.

But the debate keeps getting more charged.

This week, two developments speak to the complicated business of wind farms. And, for those of us who want the US economy to fully embrace alternatives, it's a one-two punch between China and our own backyard(s).

On the one hand, China National Offshore Oil Corporation (CNOOC) announced plans to venture into renewable energy with the first off-shore wind farm in China. The project will be situated 37 miles from shore, in the Bohai Bay, home of a significant part of the company's oil production, according to CNOOC president Fu Chengyu.

It's a welcome move by CNOOC (NYSE:CEO), which needs to diversify beyond oil, something also much needed in a country where cleaner growth is a top priority of its leaders. And there will likely be more of a push for such clean tech moves in China in the wake of the pending environmental embarrassment of the 2008 Beijing Olympics.

Why offshore? Offshore wind generation is more expensive, but has greater capacity. On land, siting is critical; you need enough open space, unobstructed wind patterns, and minimal interference by the natural or built environments. On the open water, it is easier to capture sustained, higher wind speeds; there less surface resistance, especially in deep water.

But on sea as on land, it turns out, you still get a "Not In My Back Yard" (NIMBY) reaction.

This week in Massachusetts, the Cape Cod Commission denied Cape Wind's application to bury electric cables in Nantucket Sound. The company needs to lay the cables on the Sound floor to connect its proposed 420-megawatt offshore wind farm to the state power grid.

Cape Wind plans to challenge the Commission's decision; the Commission said it did not have enough information to make a decision. The proposed wind farm will consist of 130 GE 3.6 megawatt wind turbines, capable of supplying most of the electricity needed in Cape Cod, Martha's Vineyard, and Nantucket combined.

So what's holding it up? Although the farm will be located more than 5 miles away from the Cape Cod coast, the turbines will stand -- from blade tip to water's surface approximately 440 feet -- and the transmission lines connecting the project to the grid crosses land controlled by state and local authorities.

Among those who object to the project: Senator Ted Kennedy, who along with other residents, claims he will see the wind farm from his coastal complex. Some extreme environmental groups also object to the project, on the grounds that migratory bird and sea life patterns may be disrupted.

Supporters, among them even some green groups, posit that the benefits outweigh the losses, among them renewable energy, improved air quality, lower electricity bills, and added security and reliability for the Northeast power grid. And even Audubon has discounted the impact on birds.

A recent global wind mapping project may help guide where to site wind farms for maximum return in the future. But what happens when a Nantucket Sound or the St. Lawrence Seaway makes the top of the list?

That question is a complicated one, and it often involves some big, influential neighbors.

But the larger question is do we want to invest in alternative energy or do we want to continue to rely on foreign oil, domestic coal, and other polluting sources?

With oil flirting with $90, it seems imperative to put our objections to rest and start turning ill-winds into gains.