European Tribune - Wind Costs More? Think Again

Ernst & Young present (p.36 ff) further analysis on the influence of the load factor on net cost estimation. The load factor chosen for the wind estimation was 24%. However, UK wind net costs become cheaper than CCGT's with a wind load factor of  >28%, or with a CCGT load factor of <48%.

However even in the UK, wind becomes cheaper now with a load factor >28%. Don't UK wind farms average >28%?  24% seems a low figure to use for the cost analysis.

Secondly, the CCGT advantage only applies for a load factor >48%.  Can we not expect that load factor to decline as wind penetration increases?

Finally, the UK plans to import a lot of wind energy from Ireland.  Will this not further reduce CCGT load factors? Were any inter-electricity market transfers considered as part of the study? Does it attempt to estimate the benefits of greater EU electricity market integration?

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