Junior Ganymede
We endeavor to give satisfaction

More green lies. Wind turbines twice as expensive as advertised.

December 30th, 2012 by Bookslinger

The useful life of the equipment is one of the major factors in computing cost effectiveness or return on investment in any commercial enterprise, along with one-time installation costs, labor, on-going maintenance, plus other recurring costs.

The total cost of the equipment (along with installation costs, and any other one time up front costs such as research and development), divided by the life-span of the eqipment, plus the annual maintenance/recurring costs, is compared with the expected annual revenue to be generated. Other items such as taxes, loan interest, and dividends to investors must also be factored in.

Reducing the useful life of a wind turbine by one half nearly doubles the wholesale cost (before factoring in the cost of delivering that electricity from the generation point to the end consumer through a grid of many miles of transmission lines and transformers which have their own life expectancy and maintenance costs) of the electricity it produces. Even when computed with a 20 to 25 year equipment life span, wind energy has always been decidedly more expensive (at least 20% more) than electricity generated by the burning of fossil fuel.

This new “surprise” now pushes the cost of wind-generated electricity to double the cost of electricty from fossil fuel.

Makes one wonder what else they’ve lied about.

Comments (3)
Filed under: We transcend your bourgeois categories | Tags: , , ,
December 30th, 2012 19:47:27

Adam G.
December 30, 2012

Let the market in electricity be free, and then the real cost of wind turbines is a specialized matter for energy sector investors and need be no concern of mine.

Michael Towns
December 31, 2012

Tilting at windmills, literally.

el oso
December 31, 2012

If this is confirmed in the US, the low interest loan subsidies will be the only possible way to get more windmills for power.
Natural gas power has a much lower capital cost per kW and can have a much higher usage factor because the gas pipeline never turns off.

Sorry, the comment form is closed at this time.