Economics of wind energy for utilities

Utility acceptance of this technology will be contingent upon the establishment of both its technical and economic feasibility. This paper presents preliminary results from a study currently underway to establish the economic value of central station wind energy to certain utility systems. The results for the various utilities are compared specifically in terms of three parameters which have a major influence on the economic value: (1) wind resource, (2) mix of conventional generation sources, and (3) specific utility financial parameters including projected fuel costs. The wind energy is derived from modeling either MOD-2 or MOD-0A wind turbines in wind resources determined by a year of data obtained from the DOE supported meteorological towers with a two-minute sampling frequency. In this paper, preliminary results for six of the utilities studied are presented and compared.