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THE ECONOMICS OF WIND POWER $$$$Electricity
costs from wind systems has dropped by more than 80% over the last 20 years.
In
the early 1980's, when the first utility-scale wind turbines were installed, wind-generated
electricity cost as much as 30 cents per kilowatt-hour. Now, high technology wind
power plants generate electricity at less than 5 cents/kWh.
Wind
energy offers other economic benefits which make it even more competitive in the
long term: Greater
fuel diversity and less dependence on fossil fuels, subject to rapid price increases
and supply decreases. As our world gas supply decreases, the prospect of tight
supply will grow, making further reliance on it unwise and increasing the value
of diversity.
Greatly
reduced environmental impacts per unit of energy produced, compared with conventional
power plants. Environmental costs are becoming an increasingly important factor
in utility resource planning decisions. More jobs per unit of energy produced
than other forms of energy.
Long-term
income to ranchers and farmers who own the land on which wind farms are built.
Selection of a suitable site is key to the economics of wind energy. The power
available from the wind is a function of the CUBE of the wind speed, which means
that, all other things being equal, a turbine at a site with 5 meters/second (m/s)
winds will produce nearly twice as much power as a turbine at a location where
the wind averages 4 m/s. In the electric power business, where technology options
often hinge on very small economic differences, good wind resource assessment
and siting is critical.
Winds
exceeding 5 m/s (11 mph) produce a cost-effective application of small wind machines,
while wind farms (large power producers) require wind speeds of 6 m/s (13 mph).
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