Wind-energy systems for electric utilities: a synthesis of value studies
The results from five major studies that assess the value of wind-energy-conversion systems (WECS) to 14 electric utilities have been normalized by a set of standard economic assumptions to facilitate comparisons across studies. The results indicate that WECS breakeven value is highly dependent on several factors: (1) wind resource, (2) utility generation mix, (3) assumed WECS penetration, and (4) year of WECS installation. The studies also show that WECS increase system reliability in many cases and thus can displace some capacity. This capacity displacement - measured in terms of effective load-carrying capability (ELCC) - declines with increasing WECS penetration. Sensitivity cases were examined to determine the effects of changes in utility financial parameters, fuel cost projections, WECS operation and maintenance costs, and the generation mix overtime. The results of the normalization indicate that the value of WECS to utilities ranges from $1500 to $4000 per kW, depending on the factors listed above. In reality, however, the amount that utilities could afford to pay will probably be significantly lower due to the uncertainties inherent in the predictions, and the limitations of the value-analysis methodology, which is based on a single-year simulation of a utility system. Thus, the normalized-value estimates reported here are optimistic because they ignore dynamic changes in the generation mix and competition from other alternatives.
- Research Organization:
- Solar Energy Research Inst. (SERI), Golden, CO (United States)
- DOE Contract Number:
- AC02-77CH00178
- OSTI ID:
- 6006141
- Report Number(s):
- SERI/TP-214-1976; CONF-830622-23; ON: DE83011968
- Resource Relation:
- Conference: American Solar Energy Society meeting, Minneapolis, MN, USA, 1 Jun 1983; Other Information: Portions are illegible in microfiche products. Original copy available until stock is exhausted
- Country of Publication:
- United States
- Language:
- English
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Wind system value analysis for electric utilities: a comparison of four methods
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