Re: who loses with wind power?

From: Brett Paatsch (paatschb@optusnet.com.au)
Date: Tue Jun 17 2003 - 17:59:39 MDT

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    Mike Lorrey wrote:

    > --- Spike wrote:
    >
    > > .. I ask, if the current low interest rates hold and wind power
    > > keeps going in at the current rate (they are building them like
    > > hell out here), we know who the winners are. But who loses?
    >
    > Given that renewable energy sources are HIGHLY dependent on
    > construction with very low interest capital, its obvious that fossil
    > fuel generators will thereafter be at a competetive disadvantage to
    > those finished before interest goes back up.
    >

    I not sure I follow your reasoning here Mike.

    Fossil fuel generation plants already exist, indeed, so now do some
    new windmills, so once these alternate forms of generation are
    able to distribute electricity to the grid their relevant costs to supply
    would seem to depend more now on the operational costs rather than
    the construction costs.

    As you say, a new player (with their windmills not yet built)
    entering the electrical supply market when interest rates on
    construction capital are higher would find the cost of entry higher.

    Just as an afterthought, I understood that it is the nature of
    electricity that it needs to be generated at the same time as it is
    used. ie . They are no super large batteries akin to water reservoirs
    etc. So windmills would only be able to provide power to the
    grids when the wind blows. And the net demand for electricity will
    depend on when most of it is being used.

    I did some contract work for a hydro electricity plant years ago
    and they had to balance to timing of the release of water to turn
    the turbines with when there was a need for power and when
    the water could also be used as a downstream resource for
    irrigation or river maintenance etc.

    Regards,
    Brett Paatsch

     



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