Texas Study: Benefits of Wind Transmission Outweigh Costs

[jpak]

http://www.renewableenergyworld.com/rea/news/story?id=52103

A long-awaited study identifying the transmission infrastructure needed to link wind-rich areas in western Texas with population centers in the central and eastern parts of the state concludes that such transmission could be built at modest cost to ratepayers.

The report by the Electric Reliability Council of Texas (ERCOT), the organization responsible for transmission planning in the state, explores scenarios that would make it possible for the state to integrate 5,100 megawatts (MW); 11,600 MW; and 18,000 MW of new wind energy. For comparison, at the end of 2007, the U.S. had a total installed wind energy capacity of 16,800 MW, with almost 4,400 MW of that capacity installed in Texas. The report concludes that the infrastructure needed for this new wind development could be built at a very low cost to Texas consumers, especially considering the economic, environmental, and energy security benefits provided by wind energy.

ERCOT's report determines that the money saved by decreasing fossil fuel use with new wind energy would drastically outweigh the cost of the new transmission. The smallest transmission investment plan would bring enough new wind energy online to save $1.2 billion per year in fuel costs-enough savings to cover the US $3.8 billion cost of the transmission infrastructure in a little over three years. The new wind brought online by the next largest transmission plan would save US $1.7 billion per year in fuel costs, repaying the US $4.9 billion cost of the investment in 2.9 years. Fuel savings were not estimated for the 18,000-MW scenario.

Bringing new wind energy online is critical to protecting Texas consumers from increases in the price of fossil fuels, wind energy advocates point out. Texas currently depends on natural gas to generate 49% of its electricity, and natural gas plants make up 71% of the state's generating capacity. From 1998 to 2006 natural gas prices in the state tripled, which caused the price of electricity for the average residential consumer to increase from US 7.6 cents per kWh to US 12.9 cents per kWh-an increase of US $64 monthly, or over US $750 per year, for the average household.

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[BearSquirrel2]

1. Just build the damn things ...

No one ever demanded cost effectiveness from coal power. The point is to get the resources online and decrease the demand for fossil fuels. Just start building the damn windmills. As we build, we will learn how to do it better.