Monday, 25 June 2012

The economics of wind power

A must read article: The economics of wind power: ..."It is often stated that since no one can charge money for the wind, wind-generated electricity is free. This is not true. A modern wind turbine, which can generate 2 megawatts of electricity (MWe) when the wind is blowing, costs about $3.5 million installed. Five hundred of these turbines installed at a wind farm, to be able to generate 1000 MWe, would cost $1.75 billion. Add in other costs, such as for operation and maintenance (O&M) and transmission lines, and the total sum could match the approximate $4 billion required to build a nuclear plant.
All of these costs need to be recovered from customers or taxpayers. So, the cost of wind-generated electricity is not free.
A typical wind farm would generate electricity about 30 percent of the time, and not necessarily at times when electricity is needed. There is a very big difference between intermittent sources of electricity, such as wind farms, and baseload sources, such as nuclear power. The argument that nuclear power also has down times is true, but these refueling and maintenance outages are largely planned during times of low electricity demand (during spring and fall)." ...."In conclusion, there appears to be no economic justification for building windmills except when low-cost alternatives are not available. This is especially true when windmills are placed on a grid with ample hydro, as there are no compensating fuel savings in that situation.
There is no free lunch."

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