Green VCs are Make 29% On Your Money
11/18/2011 5 Comments
Willis Eschenbach and a very revealing Guest Post at Watts Up With That. He takes one of California green solar projects and does a detailed analysis of how the those investing in subsidized green energy projects are making huge profits using your money. Willis opens the discussion:
Sounds like a scam, huh? But it’s real. Let me explain how people no, not you or me, don’t be foolish can make a guaranteed 29% return on their investment.
Then he gets in to the meat of the issue:
Because of the total failure of renewables to penetrate the market, the AGW supporters are desperately throwing money at renewable technologies. The New York Times showed a graphic for one such power plant in California. Their graphic is reproduced below as Figure 3.
.Figure 3. Federal and State Subsidies for the California Valley Solar Ranch.
Unfortunately, the Times didn’t really discuss the business implications of this chart, so let me remedy that omission.
First, how much money did the investors have to put in? Since the project will start earning money once the key is turned and the market is guaranteed, the investors only had to put up the total capital outlay of $1.6 billion. Less, of course, the generous government grant of nearly half a billion dollars. Total invested, therefore, is $1,170 million dollars.
On that money, the investors stand to make a net present value of $334 million dollars … which means that due to the screwing of the taxpayers and ratepayers, a few very wealthy investors are GUARANTEED A RETURN OF 29% ON THEIR INVESTMENT!!!
How is this fair in any sane universe? AGW supporters talk about the 1% having too much money, and here the same folks are shoveling the money into the one percenters’ pockets. The 1% weren’t rich enough already, so I have to foot the bill for them to get a GUARANTEED 29% RETURN on their investment?
I recommend reading the whole article, but first make sure you have taken your blood pressure meds: Make 29% On Your Money, Guaranteed! | Watts Up With That?. Now you can see why the Green VCs poured $30 million into defeating Prop 23. They were protecting their investment, but rate payers and tax payers are footing the bill. Maybe the Occupy Movement should be targeting the nest of VC offices along Sand Hill Road in Palo Alto,