Graph of the Day: Cape Wind to Save New England $7.2 Billion
April 3, 2012
I posted graphs the other day demonstrating the downward pressure PV solar is having on electric rates in Germany. There is similar evidence showing the price dampening effect of wind energy. Charles River Associates, a New England consulting firm, has projected what the savings to consumers would be over 25 years of operating the planned Cape Wind offshore wind project.
This is not surprising, considering that history shows that wind energy has exceeded expectations in terms of price and performance whenever it has been seriously deployed. A friend sends this little tidbit showing the price of electric power in the US Midwest:
Note: Iowa has a higher penetration of wind power than any other state – around 20 percent.
If you want to know why the Koch brothers and the Fossil Fuel industry are running a hate campaign toward renewables thru the Foxis of Evil and other proxies, look no further.
Cape Wind press release below.
BOSTON, MA, March 30, 2012 — Cape Wind will reduce wholesale electric prices for the New England region by $7.2 billion over 25 years, according to a new report published today by Charles River Associates, a leading economic consulting firm.
The report shows that ISO New England, the electric grid operator, first dispatches electric generating units with the lowest cost fuel. Since Cape Wind’s fuel – wind – is zero cost, the report states that Cape Wind will displace higher priced and polluting fossil fueled units resulting in average savings of $286 Million per year in New England.
“This report makes it clear that Cape Wind will save electric consumers billions of dollars through price suppression while also creating jobs and helping promote cleaner air and greater energy independence,” said Mark Rodgers, Cape Wind Communications Director.
The Charles River Associates report is entitled, ‘Update to the Analysis of the Impact of Cape Wind on Lowering New England Energy Prices’, and was commissioned by Cape Wind. The original report was published in February, 2010.
The increase in price suppression in the report update was attributed primarily to an increase in power plant retirements and a larger price difference between natural gas and fuel oil.
Price suppression in wholesale electric markets occurring as a result of wind power projects has been documented in Europe and in several U.S. power markets. Price suppression from wind power was noted in the 2009 report entitled, ‘New England Governors’ Renewable Energy Blueprint’, which stated “All of the wind resource potential could provide downward pressure on the marginal prices for energy within the New England electricity market…this price pressure would ultimately benefit New England consumers.”