Public policy incentives for electric utility fuel conservation investments: a case study for wind power

Technical Report · Tue Sep 01 04:00:00 EDT 1981

OSTI ID:6471329

March, F; Dlott, E H; Korn, D H; Madio, F R; McArthur, R C

A systematic method is presented for evaluating the future of solar electric technology in the electric utility industry. The sensitivity of economic performance to a range of policy variables is determined for a selected solar electric technology (wind) at typical utilities. Finally, the prospects for the solar electric technology in utilities as a function of federal power is appraised for a test case based on wind. Included are a review of wind energy technology and applications, methodology; perspectives on the electric utility industry; construction of the utility case study; and financial and policy analyses. In regard to utility investment in wind power systems, it was demonstrated that (1) large wind energy projects in the multi-megawatt range will be economic for many utilities in the 1980s if wind industry production cost targets are met; (2) the climate for investment in general and for 'risky' projects, such as wind energy, is poor; (3) utilities are risk averse with respect to renewable energy investments; and (4) wind projects must justify themselves on the basis of fuel savings only. Major findings in regard to investment evaluation criteria used by utilities also are presented.

• Research Organization: Little (Arthur D.), Inc., Cambridge, MA (USA)
• OSTI ID: 6471329
• Report Number(s): PB-83-114397
• Country of Publication: United States
• Language: English

Related Subjects

17 WIND ENERGY
170400* -- Wind Energy-- Economic
Industrial
& Business Aspects
ECONOMICS
ELECTRIC UTILITIES
FORECASTING
INVESTMENT
POWER PLANTS
PUBLIC UTILITIES
TECHNOLOGY ASSESSMENT
WIND POWER PLANTS