(Phys.org) —The costs of using wind energy and natural gas for electricity are virtually equal when accounting for the full private and social costs of each, making wind a competitive energy source for the United States, according to a new study on the federal tax credit for wind energy.
Just released by researchers at Syracuse University and the University of California, the analysis shows that wind energy comes within .35 cents per kWh when levelized over the 20-year life of a typical wind contract, compared on an equivalent basis to the full costs for natural gas-fired energy, according to Jason Dedrick, associate professor at Syracuse University's School of Information Studies (iSchool).
"The true cost of electricity from wind power and natural gas are effectively
indistinguishable, yet because the cost of carbon emissions is not included in
the market price of gas, wind has not been a competitive form of energy use in
most of the United States, without government pricingsupport," Dedrick
said.
The analysis starts from the U.S. Department of Energy (DOE) estimates
of the lifetime "levelized" cost of electricity from a new wind farm,
and also from an advanced combined cycle gas plant. The analysis develops a new
metric that incorporates long-term factors which are not included in the DOE
numbers. Accordingly, the study also reveals that the recently-expired
Production Tax Credit for wind makes up for the lack of any mechanism to make
fossil fuel generators pay for the cost of carbon emissions, Dedrick noted.
Researchers for the study, "Visualizing the Production Tax Credit
for Wind Energy," in addition to Dedrick, are Kenneth L. Kraemer, research
professor, University of California, Irvine; and Greg Linden, senior research
associate at the University of California, Berkeley.
(Phys.org) —The costs
of using wind energy and natural gas for electricity are virtually equal
when accounting for the full private and social costs of each, making
wind a competitive energy source for the United States, according to a
new study on the federal tax credit for wind energy.
Read more at: http://phys.org/news/2014-03-power-competitive-natural-gas.html#j
Read more at: http://phys.org/news/2014-03-power-competitive-natural-gas.html#j
(Phys.org) —The costs
of using wind energy and natural gas for electricity are virtually equal
when accounting for the full private and social costs of each, making
wind a competitive energy source for the United States, according to a
new study on the federal tax credit for wind energy.
Read more at: http://phys.org/news/2014-03-power-competitive-natural-gas.html#jCp
Read more at: http://phys.org/news/2014-03-power-competitive-natural-gas.html#jCp
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