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  1. A feed-in tariff is a mechanism whereby wind power projects get a guaranteed fixed price for each kWh produced. That price is paid by the local utility, which is forced to purchase all the electricity produced by the wind farm, and is allowed to pass on that cost to its retail customer base in a regulated way.

  2. Wind turbines are now a bigger business than gas turbines, worldwide. Wind turbines probably amounted to $5 billion turnover for GE last year, hardly an insignificant amount.

  3. your point on political influence is spot on, but now that companies like GE, Shell, Siemens and big utilities have jumped on the wind bandwagon, things are changing significantly. And wind has the great advantage that it creates a lot of local, visible jobs (a lot more than the industries it competes with), so its political clout is growing, especially as it has clout in rural areas that are being revitalised by its presence.


In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Sun Mar 2nd, 2008 at 01:47:46 PM EST
[ Parent ]
Are feed in tariffs in widespread use? I am doubtful that US utilities would go for something like this unless forced to by government regulation. The entire business of long distance electricity trading only arose because firms could game the system.

When utilities were either municipally or locally owned the interconnects were solely for regional load balancing and backup capability. Now firms think nothing of building a plant where environmental restrictions are lax and shipping the electricity a thousand miles away.

Enron was only unique in that it got greedy and got caught. Selling electricity on the spot market has never made sense to me, so requiring a firm to buy at a fixed price for an extended period of time seems to go against current (US) trends. If there is a movement in the other direction I would like to hear about it.

Policies not Politics
---- Daily Landscape

by rdf (robert.feinman@gmail.com) on Sun Mar 2nd, 2008 at 04:18:40 PM EST
[ Parent ]
... government regulation, but since a feed-in tariff is a government regulation, that's not an insurmountable problem there.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Sun Mar 2nd, 2008 at 06:37:19 PM EST
[ Parent ]
As BruceMcF said; and yes, feed-in tariffs are now in use in most EU countries (though there are great differences between them).

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Tue Mar 4th, 2008 at 05:05:13 AM EST
[ Parent ]
As a member of our local Economic Development Council (God help me) I've gotten no pushback on the idea of developing a wind farm but, rather, support and interest.

From a rancher's POV, which are the ones that matter here, having a turbine blade whirling around 10 meters above their cows or sheep heads is No Big Deal.  Neither the cows nor the sheep give a darn and the lease-payments for the use and access are, or can be, a significant source of income.  The use of windmills (AeroMotors) to provide water for stock is so common as to be unnoticed; thus, the psychological 'buy in' is present.  

From the communities POV the jobs provided by a wind farm are quality jobs: high paying, stable, future orientated.  Maintenance and repair need to be done on site so those jobs cannot be out-sourced.  Maintenance and repair are technical jobs requiring a level of skill (Intellectual Capital) meaning once here there is a strong incentive to put more turbines in suitable location to avoid the time and expense of training.  Even the addition of 5 full-time jobs, minor in the major population areas, would be a major boost to the local employment and to the local economy.

Inclusive, the reaction in these parts is support that can have the adjective "enthusiastic" attached.  

by ATinNM on Mon Mar 3rd, 2008 at 02:03:28 PM EST
[ Parent ]

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