MORE IRISH WIND W/O HIGHER POWER PRICE

Study finds wind power not increasing Ireland's wholesale prices
March 29, 2011 (Power-Gen Worldwide)

"…[G]rowing levels of wind generation on the Irish electricity network are not adding to the wholesale price of electricity…[according to Impact of Wind Generation on Wholesale Electricity Costs in 2011] by grid operator EirGrid and the Sustainable Energy Authority of Ireland…[The report] uses detailed modelling tools to look in detail at the wholesale prices in the Irish electricity system in 2011, which has a total annual value of almost EUR2bn ($2.8bn).

"The analysis showed that wind generation lowers wholesale prices by over EUR70m, which almost exactly offsets the costs of the Public Service Obligation (PSO) levy and other costs associated with the generation of wind energy. The study clearly demonstrates that wind energy is not contributing to higher wholesale electricity prices on the Irish electricity system."

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"Wind generators have high capital costs, but as they do not consume fuel they have no short-term costs. By displacing higher cost fossil fuel generation, wind energy tends to reduce the wholesale cost of producing electricity, the study has found. When balanced against other costs, the overall cost impact of wind is less than half of one percent…"

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"The increased use of wind energy on the Irish electricity system increases Ireland’s security of supply and ensures a more diverse fuel supply in the long-term…"

[Dr Brian Motherway, Chief Operations Officer, SEAI:] “It is important that our energy debates are based on solid facts and clear evidence. This detailed analysis answers an important question – that exploiting our strong wind energy resource comes at no additional cost…"It is right that we keep a focus on energy costs, and it is very good news to see that we can capture the benefits of wind energy without having to pay extra…[A]s fossil fuel prices increase the economic benefits become more significant.”