Wind now on even playing field with gas  

Posted by Big Gav in , , ,

Climate Progress notes that wind power is now cost competitive with gas fired power in the US - Wind now on even playing field with gas; GE to build nation’s largest solar panel factory. Romm's post also notes that General Electric plan to build the largest solar panel factory in the US - producing 400 MW per year of Cadmium Telluride thin film solar PV panels (producing some snark from SP at TOD ANZ).

Though the U.S. wind industry installed half as much capacity last year as it did in 2009, production streamlining and efficiency improvements mean wind can compete evenly with cheap natural gas, wind industry executives said today.

There was 5,116 megawatts of new capacity installed across the nation in 2010, down sharply from nearly 10,000 MW the year before. But the industry grew by about 15 percent as new equipment manufacturing facilities sprouted in almost every state.

And heated competition has driven prices down much more quickly than anticipated, the American Wind Energy Association (AWEA) told investors at a wind finance workshop now under way.

As a result, wind power generators say they can now offer utilities long-term purchase power agreements (PPAs) at the same price as natural gas-fired power plants….

Projections of future growth in the industry and claims that grid parity with natural gas has largely been achieved have upended earlier fears that record low gas prices would punish the wind sector for years to come.

AWEA figures show that the average wind PPAs are now being priced at about 6 cents per kilowatt-hour, the same price for energy procurements from a combined cycle natural gas plant. The group says wind is actually about 2 cents cheaper than coal-fired electricity, and more projects were financed through debt arrangements than tax equity structures last year, a possible sign that wind deals are winning more mainstream acceptance from Wall Street’s banks….

[AWEA chief economist Elizabeth] Salerno credits the breakthrough in cost to improved turbine design and performance, higher towers and longer blades, which have boosted the reliability and performance of wind power generation. Equipment makers can also deliver products in the same year that they are ordered instead of waiting up to three years as was the case in previous cycles, she said, calling it a sign of a mature supply chain.

Figures suggest the industry could be set to explode in size this year in terms of new installations.

The group estimates that 5,600 MW of new installed capacity is under construction in the United States, more than double the number at this point in 2010. Thirty-five percent of all new power generation built in the United States since 2005 has come from wind, more than new gas and coal plants combined, as power providers are increasingly enticed to wind as a convenient hedge against unpredictable commodity price moves, AWEA said.

1 comments

Bob Wallace   says 3:19 AM

A criticism of the $0.06/kWh price for wind-electricity is that it does not include the $0.018/kWh subsidy which wind farms receive. That would drive the figure to $0.078/kWh.

However it must be pointed out that coal also receives subsidies and along with the hidden health and environmental damage costs generated by burning coal the real price of coal-electricity is likely $0.18/kWh or more.

More than twice the price of wind-electricity.

--------

The actual cost of burning coal to boil water to make steam to drive turbines...

http://www.reuters.com/article/2011/02/16/usa-coal-study-idUSN1628366220110216

Post a Comment

Statistics

Locations of visitors to this page

blogspot visitor
Stat Counter

Total Pageviews

Ads

Books

Followers

Blog Archive

Labels

australia (619) global warming (423) solar power (397) peak oil (355) renewable energy (302) electric vehicles (250) wind power (194) ocean energy (165) csp (159) solar thermal power (145) geothermal energy (144) energy storage (142) smart grids (140) oil (139) solar pv (138) tidal power (137) coal seam gas (131) nuclear power (129) china (120) lng (117) iraq (113) geothermal power (112) green buildings (110) natural gas (110) agriculture (91) oil price (80) biofuel (78) wave power (73) smart meters (72) coal (70) uk (69) electricity grid (67) energy efficiency (64) google (58) internet (50) surveillance (50) bicycle (49) big brother (49) shale gas (49) food prices (48) tesla (46) thin film solar (42) biomimicry (40) canada (40) scotland (38) ocean power (37) politics (37) shale oil (37) new zealand (35) air transport (34) algae (34) water (34) arctic ice (33) concentrating solar power (33) saudi arabia (33) queensland (32) california (31) credit crunch (31) bioplastic (30) offshore wind power (30) population (30) cogeneration (28) geoengineering (28) batteries (26) drought (26) resource wars (26) woodside (26) censorship (25) cleantech (25) bruce sterling (24) ctl (23) limits to growth (23) carbon tax (22) economics (22) exxon (22) lithium (22) buckminster fuller (21) distributed manufacturing (21) iraq oil law (21) coal to liquids (20) indonesia (20) origin energy (20) brightsource (19) rail transport (19) ultracapacitor (19) santos (18) ausra (17) collapse (17) electric bikes (17) michael klare (17) atlantis (16) cellulosic ethanol (16) iceland (16) lithium ion batteries (16) mapping (16) ucg (16) bees (15) concentrating solar thermal power (15) ethanol (15) geodynamics (15) psychology (15) al gore (14) brazil (14) bucky fuller (14) carbon emissions (14) fertiliser (14) matthew simmons (14) ambient energy (13) biodiesel (13) investment (13) kenya (13) public transport (13) big oil (12) biochar (12) chile (12) cities (12) desertec (12) internet of things (12) otec (12) texas (12) victoria (12) antarctica (11) cradle to cradle (11) energy policy (11) hybrid car (11) terra preta (11) tinfoil (11) toyota (11) amory lovins (10) fabber (10) gazprom (10) goldman sachs (10) gtl (10) severn estuary (10) volt (10) afghanistan (9) alaska (9) biomass (9) carbon trading (9) distributed generation (9) esolar (9) four day week (9) fuel cells (9) jeremy leggett (9) methane hydrates (9) pge (9) sweden (9) arrow energy (8) bolivia (8) eroei (8) fish (8) floating offshore wind power (8) guerilla gardening (8) linc energy (8) methane (8) nanosolar (8) natural gas pipelines (8) pentland firth (8) saul griffith (8) stirling engine (8) us elections (8) western australia (8) airborne wind turbines (7) bloom energy (7) boeing (7) chp (7) climategate (7) copenhagen (7) scenario planning (7) vinod khosla (7) apocaphilia (6) ceramic fuel cells (6) cigs (6) futurism (6) jatropha (6) nigeria (6) ocean acidification (6) relocalisation (6) somalia (6) t boone pickens (6) local currencies (5) space based solar power (5) varanus island (5) garbage (4) global energy grid (4) kevin kelly (4) low temperature geothermal power (4) oled (4) tim flannery (4) v2g (4) club of rome (3) norman borlaug (2) peak oil portfolio (1)