Page 303 - Handbook of Energy Engineering Calculations

FIGURE 8 The comparative economics of wind power. This graph
shows that if the U.S. Renewable Energy Production Tax Credit is
allowed to expire again, only wind farms at the breeziest (Classes 5 and
6) sites will be able to compete with conventional generation for many

years. Unlike “normal” economic graphs, which show market factors
gradually changing trends, this one reflects a policy-driven disconnect,
which is why we have a data “gap”: On December 31, 2006, Class 5
wind will cost $30; on January 1, 2007, it will cost $45, assuming the

PTC expires at the end of 2006. (Platts Analytics.)

Further impetus for renewable wind-turbine generation of electricity in
Europe comes from the decline in the availability of oil and natural gas
supplies. More than 50 percent of the current oil and natural gas used in
Europe is imported. The Kyoto Pact seeks to have some 22 percent of the