Wind Power: One of the Cheapest Sources of Energy

wind turbine

Sustainable and renewable energy sources continue to get more cost effective when compared to fossil fuel based energy. This is fantastic since the economics of scale are really kicking into effect around solar and wind technology. Thanks to better and more production wind turbines have become more effective and energy grids have gotten more capable of incorporating the inconsistent energy production.

Improvements in wind turbine design have not only helped to increase the maximum power they can produce (or their generating capacity), but also their capacity factor, a measure of how often they actually produce energy. The average capacity factor of projects installed in 2014 and 2015 was over 40 percent — meaning they produced 40 percent of the maximum possible energy they could produce if it were very windy 24 hours a day, 365 days a year.

As the exceptionally low price of U.S. wind energy drives further wind farm installations, it will be interesting to see how U.S. grid operators manage the challenge of integrating wind energy with the rest of the grid. So far, at least, they’ve been successful. But policymakers and regulators should be cognizant of the need for new transmission capacity and other grid upgrades to integrate wind as more turbines are installed in more places. Identifying the lowest cost investments to integrate the most renewable energy is not a simple task — but it will become increasingly vital as renewables throw off the “alternative energy” label and become a major contributor to the U.S. electricity supply.

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