Wind's Economic Value - September 11, 2006
Responses from publication:
http://www.energycentral.com/centers/energybiz/ebi_detail.cfm?id=205
Two issues need to be addressed for wind to reach the
DOE goal. One is the number of square acres of land needed
for a 20% penetration. And, the second is load following.
If the prime power is coal you must have large spinning
reserves to accommodate a lull in the wind. Spinning
reserves still take fuel.
Marvin Yoder
I was extremely disappointed about the total lack of
perspective on your wind promotional piece. I expected a
far more researched and balanced piece. Wind like any
other generation option has its pluses and minuses. You
quote wind proponents extensively but have made no attempt
to address the much larger issues that have limited wind's
contribution to just 0.36% of the total 2005 US generation
(EIA-Electric Power Monthly-March 2006).
- Wind is highly unpredictable and generally provides
very little power output during peaking demand periods.
As a result, wind developers receive only a small
capacity credit towards powerpool reserve margin
requirements. Ratepayers are left paying for building
conventional generation capacity anyway.
- The national wind capacity factor was only a 29% (in
2005). If one uses average capacity performance factors
in the COE calculations (vs. developer or AWEA claims),
the calculated costs of production would be far higher.
Seems like you are falling for Enron-type accounting to
me.
- Proponents claim that other options get far more
subsidies than wind on a $ basis. Given that wind is
only 0.36% of the nations total, I would hope that the
nation spends more R&D $ on the options that account for
the bulk of our current and future energy supply. If you
compare all the subsidies on a $/MWh basis, wind and
solar are by far the most heavily subsidized generation
option s.
- Wind is the fastest growing option because it is so
small (The power of the denominator).
- Wind projects can be controversial because of its
large footprint (cleared area/MW) versus its small
output (in large part due to its poor CF).
- Wind project environmental claims are often
overblown. For pollutants subject to cap & trade
programs, any displaced emission source can
sell/transfer their allowance to another source that
would allow it to emit more. Bottom line is that for NOx
and SO2, wind may displace fossil fuel emissions but
will not avoid them.
Most wind projects are being developed to meet
renewable portfolio standards. This is a special protected
market that does not need to compete on a cost competitive
basis with conventional generation options. The question
you should ask is if the wind generation costs are so
competitive, then why do states need RPS? How about we
eliminate RPS and allow the market to choose the lowest
cost pow er supplies. I strongly support green power
purchase programs that allow customers to buy power from
the sources they want. However, I have a problem that when
not enough people who are willing to pay the $20-40/MWh
green price premiums that developers then sell state
legislators that they must pass an RPS to support
renewables.
Tom Hewson
Principal
Energy Ventures Analysis Inc
Very positive and factual article regarding wind. It is
timely that the article was published on 9/11, because
that anniversary is indicative of perhaps the most
important reason we should pursue wind energy. Wind's
primary competition is natural gas (for electricity
generation). Meeting increasing U.S. energy needs via
natural gas will require large volumes of LNG (liquefied
natural gas) imports. The countries with the required
natural gas resources include Iran, Russia, Iraq, Saudi
Arabia, Venezuela, Qatar, and the United Arab Emirates.
Relying on these countries for our energy needs has highly
predictable outcomes: war, terrorism, and price
unpredictability. Avoiding increased LNG imports from
these countries should be reason enough to pursue
cost-competitive wind energy!
Thomas Conroy
President
Wind Tower Systems
There are many reasons for promoting wind energy. They
include:
1. Wind energy is renewable. It will never run out like
all fossil fuels will.
2. Wind energy reduces all greenhouse gases to zero. It
is completely non-polluting.
3. It reduces our dependence on foreign sources of fuel
like gasoline and LNG.
4. The cost of Wind Energy will become lower and lower
as technology improves and economies of scale kick in.
5. The price of electricity from Wind Energy will not
fluctuate the way oil and gas prices do. It will be
stable.
We need to do this now, while we have time. The Federal
Government should be doing everything in its power to
support, promote and subsidize both Wind Generation Plants
and the means to get the electricity to the current power
grid. We will pay dearly if we don't do this now and it
looks like the current administration is going to sit on
its hands for another two years.
Jim Colleran
Salem, VA
In your recent article, Wind's Economic Value you
stated, "Wind's predictability is a selling point." How
can you use predictability and wind in the same sentence?
In the recent heat storm in California's recent heat storm
the wind farms performed at a dismal 4% capacity factor.
You said that Germany is on its way to20% wind supply and
yet from 1993-2003 they increased their capacity by ten
fold and got a 4 fold increase in output. What's the
problem? The wind didn't blow!!
As was pointed out to me by Thomas O. Gray, Deputy
Executive Director/Director of Communications, American
Wind Energy Association, wind is an "energy source rather
than a capacity source" and is not expected to be relied
upon for capacity. Yet it is clear in your article that it
is being toted as something to be counted on 24/7.
Something we all know is not true.
Is there any data showing the true capacity factor of
the different wind farms that is available to the public?
All I can find is predicted output, which your figures are
based on, and anything that is actual is "proprietary" and
not open to the public. I think it is time we opened the
books and saw what we are really getting for all our
installed wind capacity rather then the pie in the sky the
wind energy industry is promising.
Philip Flowers
During a trip through the Netherlands a couple of years
ago, I counted about 200 hundred windmills stretching out
into the countryside and visible from our rental vehicle's
windows. Half were not working.
After crossing into and driving through nearly the
entire length and width of Denmark, which is located on a
windy peninsula, I only counted a couple dozen windmills.
When asked, the Danes, acknowledged world leaders in
windmill technology, said they were happy to sell
Danish-made windmills to the rest of the world, but
wouldn't invest in windmills for their own, energy
resource-poor country.
The reason, as we were told: "They (windmills) are
unreliable".
M. Oliver For far more extensive news on the energy/power
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