Wednesday, March 10, 2010

Wind Power and Electricity Prices in Iowa

If, as we are used to hearing, wind power is so expensive, then we should be seeing electricity prices climb as more wind power projects come online.
It is estimated that Iowa now gets as much as 20 percent of its electricity from wind turbines. So how has that affected the price Iowans pay for their power?
The Iowa Policy Project last week released a report that shows that the price of electricity in Iowa is trending well below the national average:
One of the most common arguments for not addressing climate change and reducing greenhouse gas pollution is that the solutions are cost-prohibitive. However, amidst Iowa’s massive expansion of windpower, our average electricity prices have remained below the national average and in fact have not increased as quickly as the national average price in the last four years (2005 to 2008).
The data from the Energy Information Administration show Delaware's electricity prices climbing even faster that the U.S. average. Delaware could use some of the price stability that wind power seems to be providing Iowa.

2 Comments:

Anonymous Anonymous said...

For the casual observer this may appear as a solution to our future power needs, however, lets look at some of the facts that this writer omits;

The two States that rank just above and below Iowa in wind power production are Texas and Washington.


Texans are paid 5.78 cents per kilowatthour in 1990, which equates to 9.41 cents in 2008 dollars when adjusted for inflation.

This means they are now paying 15% more for electricity then they were in 1990.


Washingtonians paid 3.40 cents per kilowatthour in 1990, which equates to 5.53 cents in 2008 dollars when adjusted for inflation.

This means they are now paying 16% more for electricity then they were in 1990.


Florida on the other hand, which generates none of its electricity by wind, has seen its rates drop by 7% over the same time period.



This however is just part of the story.

Wind power is/has been heavily subsidized to offset its noncompetitive pricing.

To see what your state is currently offering in the way of grants: http://www.dsireusa.org/

Remember, one person’s grant is another person’s tax increase.


As for the giant myth of “Green Energy” as a jobs producer:

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=527214

8:34 PM, March 14, 2010  
Blogger TommyWonk said...

The argument that renewable energy only works because of subsidies is not convincing. Federal subsidies for fossil fuels from 2002 to 2008 totaled $70.2 billion, compared to just $12.2 billion for renewable energy.

As for the argument that Spain's promotion of renewable energy destroyed jobs, I dealt with that in this post:

http://www.tommywonk.com/2009/05/does-green-energy-cost-jobs.html

9:31 PM, March 14, 2010  

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