The drought of wind cost data has been broken with a Chinese-American plan to build a big West Texas wind farm.. U.S. Renewable Energy Group, Texas-based Cielo Wind Power LP, China’s Shenyang Power Group and A-Power Energy Generation Systems Ltd. are planning a 600 MW wind farm somewhere in West Texas. The total cost of the project will be $1.5 billion with $450 million (30%) coming from U.S. stimulus funding. The cost suggests that the rise in wind funding prices observed between 2003 and 2008 has not reversed, and the inflation of wind facilities cost is likely to continue into the next decade. The wind turbines will be built in China, so much of the stimulus monies, meant to benefit American workers, will in fact be used to pay workers in Chinese wind turbine manufacturing factories.
Sunday, November 1, 2009
West Texas wind still $2,500 per kW, Chinese Rejoice
The drought of wind cost data has been broken with a Chinese-American plan to build a big West Texas wind farm.. U.S. Renewable Energy Group, Texas-based Cielo Wind Power LP, China’s Shenyang Power Group and A-Power Energy Generation Systems Ltd. are planning a 600 MW wind farm somewhere in West Texas. The total cost of the project will be $1.5 billion with $450 million (30%) coming from U.S. stimulus funding. The cost suggests that the rise in wind funding prices observed between 2003 and 2008 has not reversed, and the inflation of wind facilities cost is likely to continue into the next decade. The wind turbines will be built in China, so much of the stimulus monies, meant to benefit American workers, will in fact be used to pay workers in Chinese wind turbine manufacturing factories.
I just discovered your blog, thanks for all the great information. I hope you stop by mine too.
ReplyDeleteJust wanted to ask in your opinion. According to GE, they have more orders than they can fill for these wind turbines.
Why wouldn't they hire Americans and make them here?
http://news.cnet.com/8301-11128_3-9918121-54.html
As usual, that's 2,500 $/kW AT THE RATED CAPACITY. Adding the average wind capacity factor of 26% (see http://attachments.wetpaintserv.us/gUGc3S8SBFRjamsH931m8g%3D%3D569344 ), that works out to 9,615 $/levelized kW. Furthermore, the $1.5B gets to be re-spent in 20 yrs. (see http://www.talentfactory.dk/en/tour/econ/oandm.htm and http://www.dailykos.com/story/2008/12/28/185825/42/388/677953 )
ReplyDeleteDid T. Boone Pickens have anything to do with this?
ReplyDeleteAs far as i know, this is not one of T. Boone Pickens' deals.
ReplyDeleteWrong question, the right question is how much money will be going to Members of Congress (MoC), directly or indirectly.
ReplyDeleteThe old fashioned kick-back is so old hat, I expect it will be via stock in the alternative energy companies, either directly owned by MoC, or owned by their families.
Ever wonder why so many MoC are so strongly in favor of wind and solar, even when the economics make no sense? Follow the money, and see if all becomes clear.
Charles, great post. The story of wind power is truly tragic.
ReplyDeleteJust divide by the capacity factor of 0.26 to reveal $9/watt capital investment!
ReplyDeleteI understood that Pickens was part of this deal, because he had to back out of his prior commitments to purchase the wind turbines, making this deal economic.
What a waste of taxpayer money! Why should taxpayers be forced to pay for such waste and inefficiency?
ReplyDelete