The Alternative Energy Source
A Student Produced Site for Alternative Energy Education
Any discussion of potential energy sources being used for production of electricity cannot be had without mentioning the economical costs and benefits of the energy sources. The American Wind Energy Association (AWEA) explains that between 2007 and 2011, wind energy produced 35% of new generation capacity in the United States. Why has wind become so popular in the country? The economics will explain the appeal.
Costs
In a 2007 report from the U.S. Department of Energy on developments of wind power, the cost of wind power is extremely competitive with the cost of more conventional forms of energy. These costs of wind energy do not even consider the potential health benefits from using a power source with no greenhouse gas emissions, and the costs of wind energy are expected to decrease even as the costs of conventional energy sources continue to increase.
Typically there are two ways of harnessing the power of the wind, large-scale wind farms and small-scale wind turbines. For considering costs of electricity produced from wind farms, the EPA estimates that large-scale wind farm installation costs about $1000 to $2000 per kilowatt (kW). For small-scale wind turbines, the installation costs are around $3000 per kW. It is important to realize that though the smaller turbines have a larger overall cost, there are different sized turbines that are available for small-scale use and the overall costs decrease with larger turbines.
The costs of both large-scale and small-scale wind energy can be mostly attributed to the following criteria:
- Annual capacity factor (the actual amount of energy produced per year divided by the amount of energy produced if the farm works at full power for the year)
- Location of the farm
- Quality of the wind
- Costs of installation and maintenance of the turbines.
Economics of Wind Energy
The figure (courtesy of the EPA) shows the annual average wind power in the U.S. by indicating the classes of wind power density. The availability of wind at a particular site is an important factor to consider when building a wind farm or small-scale turbine. More wind means generation of less expensive electricity than less windy locations
Works Consulted
Auxiliary and Supplemental Power Fact Sheet: Wind Turbines. N.p.: United States Environmental Protection Agency, 2007. Print.
Consumer Benefits: Why Commissions & Utilities Like Wind. N.p.: AWEA, n.d. Print.
Wind Turbine Operations and Maintenance. N.p.: AWEA, n.d. Print.
Operations and Maintenance
One of the largest segments of growth and business opportunity in the wind industry is the area of wind turbine operations and maintenance (O&M). In order for wind energy to be as competitive as possible with conventional energy sources, the turbines must be operated and maintained properly. Keeping wind turbines productive for years to come extend from its design period all the way to repowering a project years into the future. All points in the operation and maintenance of wind turbines require workers to ensure the full productivity of the turbines.
To properly operate and maintain wind turbines, workers must "have extensive technical knowledge and safety training; sophisticated capabilities to diagnose component performance; knowledge and skills to schedule replacement components; and ability to accommodate changing weather conditions" (Wind Turbine O&M). The American Wind Energy Association (AWEA) a number of educational programs and networking opportunities for businesses to expand into the area of Operations and Maintenance. For businesses, check out some AWEA opportunities here
Consumer Benefits
Why is wind power so appealing and why is it the largest provider of new generation capacity in the country? Locked-in prices and affordable domestic energy is the answer; wind energy saves the power companies money, and those savings are then passed to the consumers. According to the AWEA, wind energy provides long-term stability because it allows utility companies to lock in prices for up to thirty years while protecting their consumers and utilities from the constant fluctuations of fossil fuel prices. Wind power has also become more affordable and it is domestic; prices for building turbines and capital costs have sharply decreased in the last few years. At the same time efficient domestic production has made transportation cheaper, produced good American jobs, and made turbines better and more efficient.
Numerous studies cited by the AWEA in their consumer benefits article explains how the affordability of wind energy passes power company savings to the consumers. A couple examples include:
1. Regions of the country experiencing significant growth in wind energy over the last several years have also seen significant decreases in wholesale power prices
2. Gaining 20% of the East's electrical power from wind energy and building a transmission infrastructure necessary for that conversion would save consumers over $30 billion on energy costs
For more information on Consumer Benefits of Wind Energy, check out the AWEA Fact Sheet
Job Opportunities and Consumer Benefits
