The REAL Cost Of Wind Energy

It is safe to say that wind energy is essentially free energy. It comes from the heating effect of the earth’s surface by the sun. This heating effect is irregular because of the uneven surface of the earth. It therefore gives rise to airstreams that move between the cooler zones and the hotter zones. This is the wind that blows and that makes the blades on the wind turbines move and thus generate electricity.

Wind energy business model: financing of wind energy

In the nineteen eighties the wind energy generators that were installed typically showed a cost of 30 cents per kilowatt-hour period. This in itself was not a very attractive price compared to the conventional power generators that existed already. However over the last twenty years fossil fuel prices have gone up, and wind generation prices have come down. Today we see a reduction of almost 80 percent in the cost per kilowatt-hour thanks to these factors and the latest high technology wind turbine generators. 5 cents per kilowatt-hour is a common phenomenon now. This is clearly an extremely advantageous rate at which to pay for one’s electricity.

Further advantages favor wind energy compared to fossil fuels. Wind energy is easily harvested on farms and ranches, which have an abundant supply of this free energy source. Wind energy is available to anyone who lives in an area where the wind blows. There are no imports necessary or even possible from foreign countries. This is a great difference compared to fossil fuels where importing large quantities of such fuels is a normal if unfortunate occurrence. Fossil fuels of course also are highly polluting and not a renewable source of energy.

To make sure that the wind energy generation can be done in a profitable and effective manner, it is necessary to select a site with certain minimum criteria. Wind speed, for example, which is directly correlated to the amounts of electricity that can be generated, must be at least 5m per second in this case.

Improving the financials for wind energy even further

A wind energy developer applying utility financing to wind energy power plants can already generate wind power for as low as 5 cents per kilowatt-hour from a standard 50 MW wind power plant. However this price for kilowatt-hour can drop to as little as 3,5 cents, which is a 30 percent reduction. Wind power generation in this sense is even more attractive compared to say gas power plants and it is clear that wind power generation costs will continue to decrease in the coming years.

Save money and save the environment at the same time!

The environmental question of course is a very important one concerning wind energy and any other renewable energy source. Wind energy is clean. This is in comparison to say coal emissions from coal fired energy plants, which release very small dust particles into the atmosphere. These dust particles can have a serious sometimes fatal effect on human beings because of the cardiovascular and respiratory diseases that can be provoked. They may also result in a higher infant mortality rates for the same reason. Coal plants of course are also responsible for the production of greenhouse gases and the phenomenon such as acid rain. Use of coal power plants can be clearly linked to both a worsening visibility in the earth’s atmosphere and global warming.

Wind power now needs to be set-up with the long-term power generation contracts to solidify and consolidates market acceptance of this new and renewable energy source. The advantages that should allow this to happen include the minimum cost of life cycle for wind energy plants, because they have minimum operating expenses and no fuel purchase is necessary. Wind energy can be used and reused, but will never contribute to any of the pollution that is generated by the conventional fossil fuel power plants.