Some very interesting statistical data
had just been released in regard to Wind Power Cost-Competitiveness. It is contained within the US Department of Energy’s study on US Windpower.
1. During 2012 about 13 gigawatts of new capacity was installed. For comparison purposes, this is more than twice the UK’s total wind power. It provided about 43% of the net additions to US generating plants.
2. The Department of Energy study suggested that US wind farms are supplying power to the various regional grids at an average of $ 40 an MWh. This is broadly competitive with the cheapest gas-fired generation in the US (and little more than half the current price of UK electricity).
3. Lastly, the study suggests that the cost to the grids of integrating wind power is less than $12 an MWh. This is a tenth of the estimated costs suggested by the Global Warming Policy Foundation last year. Wow!
Wind Power Cost-Competitiveness.
Putting this information together it means that US wind power is now nearly competitive with fossil fuels. This is true even given the relative cheapness of shale gas in the US. The DoE report suggests that the prices agreed between wind farm owners and electricity buyers are now roughly competitive with the top end of conventional (fossil fuel) generation.
Of course, Companies installing wind turbines get substantial tax credits, but the latest data shows that the cost of onshore wind power in the US is now roughly at the same level as a gas generator. And of course, it is much lower, than the costs of any form of power generation in the UK.
Anti-wind lobbyists in the UK say that patchy (read “variable”) wind power imposes huge extra costs on the rest of the electricity system. But the US study doesn’t show this. The study looked at many different estimates of the cost of integrating variable wind into the US grid system (see the third point above).
In addition to the benefits to US energy consumers, the rapid expansion of wind energy in the States is boosting the US economy. Almost 75% of all wind turbine costs were spent in the US. Not only that, but US exports of wind equipment are also growing sharply- probably as a result of US manufacturers continuing to innovate and reduce the cost of making the turbines while making them more efficient. What’s a little astonishing is that wind represents only one-twentieth of US power generation. That’s roughly the same as the UK. But industry analysts suggest that after a poor 2013, the US wind power industry is on the rise again, with many projects both on and offshore planned to boost the ratio of wind: fossil energy creation in favour of the wind.
Can the Department for Energy and Climate Change in the UK please take note of this- and stop fracking about!
