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Will Wind Become Competitive?
By Claus Schafhalter | August 11, 2010
There are many new wind projects under way, in the US and world wide.
What is said to be the world largest wind energy project is started in California’s Mojave Desert. Once completed as planned, the Alta Wind Energy Center (AWEC) will have the ability to generate 1,550 MW. Project proponents also claim that 3,000 jobs will be created. $1.2 billion are said to be injected into the local economy in Kern County, California.
Meanwhile in British Columbia, Canada, BC Hydro acquired about 3,300 GWh/year of clean energy. Six wind power projects account for almost half of the clean energy, 434 GWh/year from Tumbler Ridge project by Capital Power Corp., 237 GWh/year form Meikle Wind project, and the rest from four smaller ones.
Portugal, EU, seems to be more than one step ahead. An initiative to reduce Portugal’s dependence on imported fossil fuels, started 5 years ago, shows results. In 2010, almost 45% of Portugal’s electricity will come from renewables. Land based wind power is deemed to be potentially competitive with fossil fuels this year, according to the International Energy Agency in Paris. And land based wind power generation has expanded seven fold within 5 years.
But as you can see, wind energy still has no price advantage when compared to energy generated by fossil fuels. The US average residential retail price for electricity was 11.75 cents in April 2010. This price to consumers includes a majority of electricity generated by conventional not renewable means. Wind project “Cape Wind”, Massachusetts, reportedly sold its proposed electricity for 18.7 cents per kWh to National Grid. This premium for renewable energy leaves the door wide open for critics of alternative energy and proponents of oil, gas and coal.
There is no silver bullet. Costs of renewable energy generation might come down, but as long as we do not include environmental costs into all forms of energy, renewable energy will stay to have a price disadvantage compared to fossil fuels.
Claus Schafhalter, Management Consultant @ Sunogos
Topics: Sustainability Concepts, Sustainable Technology | No Comments »