Green energy investments touted by President Obama and the Democrats of New Mexico’s Congressional delegation have proved to be a disastrous bet. Since the Fall of 2008 an index tracking the market performance of solar, wind and other green energy companies is down 98%…while the rest of the stock market has climbed to impressive highs.
The RENIXX index tracks the market performance of green energy companies. It peaked in December 2007, and continued to drop along with the rest of the market into the dark days of October 2008.
The green energy index has continued to fall in both relative and absolute terms.
Compare the performance of green energy companies to the broader Dow Jones index over the same decade:
If you were playing with your own money, you would have lost your shirt betting on the overall green energy index. But, of course, the politicians and lobbyists who have pushed billions of taxpayer dollars into failed energy adventures have generally profited from the public’s losses.
It is worth recalling, as well, the failed promises of former Gov. Bill Richardson’s “solar valley” vision for New Mexico. The companies into which he steered direct and indirect state investments (indirect in the nature of infrastructure and tax breaks) lie in shambles or died in utero, never having a chance to survive in the real world. Richardson has departed the land of his imagination, but New Mexico taxpayers continue to carry the consequences of his costly fantasy on their balance sheets as losses running into the tens of millions of dollars, without jobs and tax revenue to justify the fiscal damage.
Related: Green Energy Blues in New Mexico
Green energy is getting cheaper, but according to the charts in this article, it remains more costly and suffers from a persistent competitive disadvantage to fossil fuels.