For a smarter, cheaper clean energy plan, the US should look overseas

As Congress and the White House look for a way forward on the Build Back Better Act and the president’s broader climate agenda, they could learn something from how other countries support new energy technologies. Over the years, many states have backed away from broad-based subsidies like the ones used in the United States. In doing so, they have saved money and increased the political appeal of supporting low-carbon energy. The United States can and should learn from these best practices. Consider an unexpected outcome observed in Europe due to high electricity prices: The subsidy for offshore wind in the United Kingdom has turned negative, so wind projects are now paying money to the state. The reason is that the United Kingdom supports offshore wind through a “contracts for difference” structure. The scheme pays developers the difference between the price they need to…

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