Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.

Hopefully this will not lead to the domination of the industry by a small cartel of businesses with a virtual monopoly - who can then set prices at a very high level and stifle the growth of the industry overall.

I'm not sure I understand your point. Airtricity is a developer of wind farms. Developers get a fixed tariff determined by government (whether a feed-in tariff or via green certificates) and have no leeway whatsoever. Even in the regulatory frameworks where markets play a role, that market is driven by how it's set out by the regulator (and there are EU rules about that). Regulations are made to provide higher prices to wind developers, that's the whole point - and have long been opposed by utilities who had to pay for them directly (and charge them on indirectly to users).

Now that utilities are getting into the wind game, they are on both sides of the price formula and don't really care anymore where it's set - one hand gets what the other pays out.

Given the natural fluctuations in wind availability, do you know what is the max % contribution that wind can make to overall national electricity generation before it results in brown-outs on calm days and excess production capacity on windy days?

See the link in my diary above: No technical limitation to wind power penetration

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Dec 8th, 2007 at 02:00:06 PM EST
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