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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Seeker of Truth who wrote (40667)11/2/2003 9:57:55 PM
From: Raymond Duray  Read Replies (2) of 74559
 
Malcolm,

Re: 4. Wind: Again it is several times the cost of oil energy.

You may want to take another look at this assumption. Currently, state of the art utility scale wind farms are producing electrical energy at a cost of less than 5 cents/kWh. This compares very favorably with the cost to produce electricity with fuel oil.

awea.org

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Furthermore, there is an expectation that advances in wind turbine design will allow for a progressive reduction in turbine costs. In the meantime, fossil fuel costs are expected to either remain constant or rise.

Source: telegraph.co.uk

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From PBS's NOW,
[http://www.pbs.org/now/science/wind2.html#costs]
we get the following statistics:

 

Comparative Electricity Costs 1996

Coal: Levelized costs per kilowatt hour: 4.8-5.5 cents

Gas: Levelized costs per kilowatt hour: 3.9-4.4 cents

Hydro: Levelized costs per kilowatt hour: 5.1-11.3 cents

Biomass: Levelized costs per kilowatt hour: 5.8-11.6 cents

Nuclear: Levelized costs per kilowatt hour: 11.1-14.5 cents

Wind: Levelized costs per kilowatt hour: 4.0-6.0 cents


Sources: National Wind Technology Center nrel.gov; American Wind Energy Association
awea.org
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