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PJM interconnection, the grid service provider for eastern parts of the US, just completed a study of the cost of cutting CO2 emissions from its 66 GW (!) of coal.  They found that various methods of complying with carbon standards would cost between $6 and $36 B per year (which shows how accurate the methodologies are.)  But they did find that the addition of 15GWs of wind would reduce the cost by $3.55 to $4.74B per year.  In other words, Windpower can significantly reduce the cost of compliance with CO2 regulations," says AWEA.  And this is from a company which dispatches 66GWs of coal!

Further, the latest Wind Power Monthly has its annual review of energy costs, which deserves an entire diary, concluding that wind remains competitive with all thermal generation.  They further state that the thermal industries completely underestimate the risk premium associated with building thermal plant.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Mon Mar 30th, 2009 at 05:36:42 AM EST
From Wind Power Monthly, only summary online.


Just how wind power has managed to stay competitive against falling fossil fuel prices requires a deal of explanation. Suffice to say here that it has much to do with the sharp fall in interest rates on borrowed money, which brings down the cost of capital-intensive wind power far more than it does the fossil fuel technologies.

Another reason for wind power holding its own lies in the rapidly rising cost of hedging the risk of fossil fuel prices going through the ceiling once more. Nobody expects oil prices to stay at less than $50 for long and even the International Energy Agency, a child of the oil industry, believes they are heading for $200 a barrel in the medium to long term. Any hike in oil prices has historically dragged gas and coal prices up too, for the simple reason that demand for them rises as oil prices itself out of the market. We take a closer look at the "cost of fuel price risk" in a side story to this year's main article.



"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Mon Mar 30th, 2009 at 05:44:52 AM EST
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