Friday, May 24, 2013

The High Cost of Low-Value Wind Power



A study published in Regulation magazine finds government-subsidized wind power "represents bad economics and bad energy policy, for at least three reasons. First and foremost, wind generation’s production pattern is not only volatile and unpredictable, it also has low economic value" because it generates the  least amount of power when it is most needed.

The High Cost of Low-Value Wind Power
Subsidized wind generates the least amount of power when it is most needed.


Conclusion:

Continued subsidies for wind generation, both in the form of tax credits and mandatory renewable portfolio standards, represent bad economics and bad energy policy, for at least three reasons. First and foremost, wind generation’s production pattern is not only volatile and unpredictable, it also has low economic value. Rather than displacing high variable-cost fossil generating resources used to meet peak demand, wind
generation’s availability peaks when electricity demand is lowest. As a result, wind generation tends to displace low variable cost generation or simply forces baseload generators to pay greater amounts to inject power onto the grid because the units cannot be turned off and on cost-effectively. Thus, consumers
and taxpayers are forced to subsidize low-value electricity. 
...

Ultimately, continued subsidization of wind generation simply rewards a few niche generation companies and their suppliers, at the expense of the many. Given the massive federal debt and anemic U.S. economic recovery, this type of pernicious wealth redistribution cannot be justified.

1 comment:

  1. Have you ever noticed that as the Sun goes down the wind tends to drop in velocity, not all the time but about 7 out of ten times. The reason for that is the Sun warms the land and causes hot air to rise, it is then replaced by drawing in air to replace the rising air. As the sun drops below the horizon the warm air no longer rises and the wind drops.
    The peak time for electricity usage is about 6:oo in the evening when people get home from work and turn on their appliances. The two items quite often coincide.

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