by Zachary Shahan — Special to JBS News
Anyone who tells you wind power is expensive is bad-shit crazy. Wind power is the cheapest option for new electricity generation in many, if not most places in the world, including much of the U.S. That would indeed help to explain why the U.S. installed more wind power capacity — than power capacity from any other source in 2012, 42% or 43%, of all new power capacity in the country.
“The prices offered by wind projects to utility purchasers averaged $40/MWh for projects negotiating contracts 2011 and 2012, spurring demand for wind energy.”
That’s $0.04 per kWh. Even if you add in the $0.022 Production Tax Credit (PTC), that’s $0.062 per kWh.
As the reader who shared this with me aptly emphasized; “This is a low number. It’s not just the LCOE of wind. It includes real estate, transmission, taxes and profits. It’s the ‘delivered to the door’ cost of electricity, not just the generation price.”
Another point worth noting, highlighting even, is that some “energy experts” are downright horrible at projecting the future cost of new and new-ish (wind power isn’t that new) technologies.
“The EIA is predicting $0.0866 in 2018 and that does not include real estate costs, profits, and taxes,” our reader adds. “EIA predictions stink.” Well, I think many of us who follow the industry already knew that, but what an excellent forecast to highlight.
By the way, Silvio did an excellent job covering the new DOE/Berkeley Lab report, 2012 Wind Technologies Market Report, right after it was released. For a lot of interesting and fun facts and maps, as well as additional context that is highly important, be sure to check out his piece, Rollercoaster Policy Threatens US Wind Energy’s Record-Setting Pace.
- US Wind Power Prices Down To $0.04 Per kWh (cleantechnica.com)
- U.S. wind power coming closer to home (upi.com)
- Texas breezes along as US wind power leader (fuelfix.com)
- Intel is the biggest user of green power in U.S. for fifth year in a row. Can you guess the others? (treehugger.com)