The Economics of Wind
Wind energy is competitively priced when compared to other new generation available. Wind is "inflation-proof" – once a wind plant is built, the cost of energy is known, and is not affected by fuel price volatility.
Whether offshore or land-based, the cost of electricity from a wind farm is free not only from cost increases that may result from climate change and carbon emission regulations, but also from increases in the price of fuel used for electricity generation. For example, according to the U.S. Department of Energy, coal prices have risen by 150% from 1999 to 2006, and natural gas prices have risen 400%. By contrast, wind is free even if wind turbines aren’t. Costs for materials for all new generation have increased due to global demand, but once a wind farm is built, the operating and maintenance costs are predictable. Utilities can lock in power prices for wind at a stable cost for twenty years or more.
Discussion about costs for wind and conventional generation can be found here in a report by consulting firm Black & Veatch. See especially the charts on pages 55 and 56.
Wind power is poised to be a significant source of American energy. Diversifying federal support to include newer, non-polluting, domestic energy industries like wind is smart energy policy.
What about subsidies for wind?
Wind power is poised to be a significant source of American energy. Diversifying federal support to include newer, non-polluting, domestic energy industries like wind is smart energy policy.
Every energy technology is supported by the federal government. Wind energy is no exception, nor should it be. The Government Accountability Office (GAO) estimated federal incentives for electricity between Fiscal Year (FY) 2002 and FY 2007 and concluded that:
"Tax expenditures largely go to fossil fuels: about $13.7 billion was provided to fossil fuels and $2.8 billion to renewables.”
You can find more on subsidies here, http://www.awea.org/pubs/factsheets/Subsidies_Factsheet.pdf
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