02 Sep '13, 11am

Wind Power Surge in Texas Curbing Utility Profits

The cheap electricity in Texas is a short term effect that will only last a few years. The massive subsidies resulted in large wind additions. That dropped the price of electricity because the existing electrical generating system already paid for could provide the backup electricity. Over time those generating assets will be retired and will not be replaced unless the price of electricity when the wind is not blowing increases dramatically. Nobody will build a new power station that functions only half the time unless the price of electricity when it is on-line is doubled. Unfortunately fast-start natural gas plants operated in this mode are rather inefficient so the greenhouse gas emissions may increase. Its great news for General Electric that builds windmills and gas turbines but not for Texas. Eventually the subsidies on wind will die as the costs go up. On windy days...

Full article: http://www.renewableenergyworld.com/rea/news/article/2013...

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Wind Power Surge in Texas Curbing Utility Profits

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