Wind power: save the world while saving money
October 21st, 2008 by Jim JustJerome a Paris at The Oil Drum reminds us that wind is a power source that deserves to be taken more seriously.
Wind is following the exact same growth trajectory as nuclear power did – just thirty years later:
Over the past 8 years, wind has represented around 40% of new installed capacity (which, it is true, represents a smaller fraction a new production, in MWh, which is probably closer to 25%).
Under market price setting mechanisms, wind power (which has a zero marginal cost) brings wholesale prices down when it is available, by avoiding the need for more expensive coal-fired or, more usually, gas-fired power plants that would otherwise be required. Subsidizing wind pays off. For example, in Denmark and Germany the overall effect (price reduction multiplied by the relevant volume) now brings savings to consumers that are equivalent to the gross cost of feed-in tariffs and significantly higher than the net subsidy.
In addition to reducing carbon emissions and improving energy independence, wind saves money.
The Wall Street Journal reports that shares in solar- and wind-power companies have suffered even more than the market at large and that the outlook for new projects is growing increasingly cloudy. The new administration needs to ensure that investments in wind energy – and in saving civilization from an energy crisis and climate change – not only continue, but are massively increased.