Comment & Debate
“Wind energy myths”. Wind Powering America. May 2005 – 6 New natural gas power plants provide cheaper energy than wind plants. This is not likely with today’s rising gas prices. At $3/MBTU, the fuel cost alone is 2.5¢ to 3¢/kWh, and capital and O&M costs add a similar amount. Today, gas prices have risen to more than $6/MBTU, yielding a fuel cost alone in the 5¢ to 6¢/kWh range. And gas prices have spiked to more than $10/MBTU in past years. Betting on low gas prices over the foreseeable future is highly risky, while energy costs from wind plants will be relatively stable over time. In a recent study, Lawrence Berkeley National Laboratory found that the natural gas “hedge value” of wind could be conservatively estimated to be 1/2 cent/kWh.6,7