At a wholesale price of about 8 cents a KWH this wind farm will only be producing about $36,000 a year worth of electricity. (based on the 10 year projection of 4.5GWH) I wonder how much it will cost them to build and maintain it? Sure sounds like a money pit to me.
[This message has been edited by gfretwell (edited 12-23-2006).]
#73374 - 12/24/0612:39 AMRe: So Cal Ed signs biggest U.S. wind contract
I believe that they are claiming 4.5GW of _capacity_, not 4.5GWh of production. These are vastly different numbers.
As a rough estimate, figure that on average you only use about 1/3 of your capacity, since the wind doesn't blow all the time. There are 8766 hours in a year, so 4.5GW of capacity give you about 1.3*10^10 kWh per year. That is real money.
As I understand it, wind power is currently approximately competitive with new gas turbine power production...but only if the interest rates are right, and the life of the turbines is long enough to amortize the investment, and fuel costs stay high. With wind you put most of the money in up front as capitol investment; with gas turbines you pay for the fuel. Given how much fuel costs, you can see how much this must mean wind power costs _up front_ if the two are roughly competitive.
#73375 - 12/24/0601:28 AMRe: So Cal Ed signs biggest U.S. wind contract
I guess it will really come down to what the maintenance costs are. They also have the PETA folks complaining about the birds and people like the Kennedys who say wind farms are too ugly to be near their house. Time will tell. I believe Palm Springs has had a wind farm for quite a while.
#73377 - 12/24/0602:34 PMRe: So Cal Ed signs biggest U.S. wind contract
Does anyone know where these are being built/manufactured? There's been a lot of windmill parts (literally, The HUGE poles and blades) coming out of Fairless Works lately. How likely is it for them to haul them across the country, rather than get them from a mill out there or Asia?
Is there anyone on board who knows how to fly a plane?
#73379 - 12/25/0605:18 PMRe: So Cal Ed signs biggest U.S. wind contract