The federal government has long been a player in the energy industry. On top of its regulatory role, the U.S. government extends tax credits to companies in fossil fuels, renewables and nuclear energy alike.
It also makes direct investments. The Tennessee Valley Authority, for
instance, a supplier of power to seven states, was created by
Congress and has been owned by the U.S. since 1933.
In more recent years, partly in response to some very public
failures, controversy has erupted over the Department of Energy's
investments in clean-energy startups. The department has a $34 billion
portfolio of loan guarantees to solar, wind, nuclear and other
companies. The energy secretary reported in May that about 2% of the
portfolio represents losses. Some of the biggest losses were linked to
Solyndra, a maker of solar panels, and Fisker Automotive, an
electric-car company.
Supporters of the policy say the government's investment role is
essential for clean-energy startups to keep their costs down and be able
to bring innovative products to market. But critics say that politics
play an outsize role in the government's investment decisions, and that
when government invests the taxpayers' money in new and unproven
technologies, it skews the marketplace.
Read more at Wall Street Journal
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