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Clean Power Pickens Plan

Published on November 5th, 2008 | by Sarah Lozanova

10

Largest Wind Farm in World Halted By Credit Crisis

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November 5th, 2008 by
 
Pickens Plan

The credit crunch is not just hurting the banks and the real estate market. Even the billionaire and wind energy enthusiast, T. Boone Pickens is having trouble financing his high profile 4000 MW wind farm. The proposed Texas wind farm has a hefty $10 and $12 billion price tag.

Although we are used to hearing about climbing energy costs, the price of natural gas is actually down. Natural gas accounts for 20% of the nation’s electricity generation. The energy sector is also suspecting that the financial crisis may result in a global reduction in energy demand. Pickens’ plan calls for replacing natural gas with wind energy for electricity generation, while converting vehicles to run off natural gas. The natural gas currently used for electricity would be used for transportation and America could wean itself off foreign oil.

“I think it is all going to be put off, because we have got the credit crunch, one, but, two, natural gas prices [are down], so you are going to price wind off natural gas power and right now natural gas is so cheap there will be no new wind deals until natural gas price gets back up,” Pickens said.

“Presumably, a lot of capital would have to be raised to move these things forward, and that looks to be extremely difficult in these current conditions,” said Richard Murray, director of the University of Houston Center for Public Policy. “And if crude drifts back down to the $50 to $60 range, it is going to take a lot of the incentive away to shift your energy paradigm.” Crude was trading below $65 barrel on Friday afternoon.

Even Pickens’ energy related hedge fund, BP Capital, posted losses of 60% this year.

Pickens is certainly not throwing in the towel. He is creating a “New Energy Army” and strives to have 2 million members by enaugeration day. He currently has over 1.3 million members. Such publicity including television commercials and print adds for Pickens’ Plan has caused Americans to think about energy policy.

“His outcry has neighbors talking over the fence about our energy future,” said Ned Ross, director of regulatory affairs for a unit of utility FPL Group Inc in Texas. “People who either paid no attention to energy or didn’t care are in the debate.”

Now that the price of gas is below $3 a gallon in most markets, Americans are less likely to embrace natural gas for a transportation fuel, which would require significant infrastructure investments. Obama however is calling for a $150 billion investment in clean energy over the next ten years. The energy future of the U.S. is certainly in transition.

Related Posts on Renewable Energy:

Solar Fuels Nevada Economy

5 Top Countries for Renewable Energy Investment

McCain and Obama’s Plan to Combat Climate Change

The Pickens’ Plan: Boon or Boondoggle?

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About the Author

is passionate about the new green economy and renewable energy. Sarah's experience includes work with small-scale solar energy installations and utility-scale wind farms. She earned an MBA in sustainable management from the Presidio Graduate School and is a co-founder of Trees Across the Miles, an urban reforestation initiative. When she can escape the internet vortex, she enjoys playing in the forest, paddling down rivers, or twisting into yoga poses.



  • Shannon

    A real shame. A plant in Windsor, Colorado opened up a while back making the blades, with plans to open 2 more plants in Colorado in the next 2 years to build generators. Investing in alternative energy could help the planet long term and provide jobs. Don’t know if this halt of production will affect my husband’s new job, but we are now getting scared that even alternative energy will be scrapped.

  • Shannon

    A real shame. A plant in Windsor, Colorado opened up a while back making the blades, with plans to open 2 more plants in Colorado in the next 2 years to build generators. Investing in alternative energy could help the planet long term and provide jobs. Don’t know if this halt of production will affect my husband’s new job, but we are now getting scared that even alternative energy will be scrapped.

  • Shannon

    A real shame. A plant in Windsor, Colorado opened up a while back making the blades, with plans to open 2 more plants in Colorado in the next 2 years to build generators. Investing in alternative energy could help the planet long term and provide jobs. Don’t know if this halt of production will affect my husband’s new job, but we are now getting scared that even alternative energy will be scrapped.

  • http://cutewriting.blogspot.com Lenin Nair

    That’s very unfortunate to know. Maybe it resumes operation soon.

  • http://cutewriting.blogspot.com Lenin Nair

    That’s very unfortunate to know. Maybe it resumes operation soon.

  • Jeff Dunn

    Wow… this is really a terrible shame. It’s going to be much more expensive for all of us if we don’t work to AVERT an energy crisis, rather than attempt to weather one.

    IsHungLikeAHorse dot com

    Register YourName at IsHungLikeAHorse dotcom today!

  • Jeff Dunn

    Wow… this is really a terrible shame. It’s going to be much more expensive for all of us if we don’t work to AVERT an energy crisis, rather than attempt to weather one.

    IsHungLikeAHorse dot com

    Register YourName at IsHungLikeAHorse dotcom today!

  • Jeff Dunn

    Wow… this is really a terrible shame. It’s going to be much more expensive for all of us if we don’t work to AVERT an energy crisis, rather than attempt to weather one.

    IsHungLikeAHorse dot com

    Register YourName at IsHungLikeAHorse dotcom today!

  • http://www.i-waves.com pratap

    4000 MW? I thought there is a huge demand for power?

  • http://www.i-waves.com pratap

    4000 MW? I thought there is a huge demand for power?

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