Utilities' Appetite For Wind Energy Continues To Grow

[kristopher]

Utilities' Appetite For Wind Energy Continues To Grow

by Jeff Anthony on June 10, 2013

Evidence that utilities are increasingly turning to wind energy is well documented, and recent announcements show this trend accelerating. Last year, for the first time ever, wind power came in as the largest single source of new electric generating capacity in the U.S., installing 42% of all new capacity in 2012 and 36.5% of all new generating capacity over the past five years.

More and more, utilities are recognizing the hedge value against fossil fuel price volatility and the zero fuel risk premium that wind energy brings to a generation portfolio.

By the end of 2012, the top five electric utilities with wind power capacity on their systems were Xcel Energy, MidAmerican Energy (including PacifiCorp), Southern California Edison, Pacific Gas & Electric and American Electric Power. Eight utilities currently purchase or own more than 1 GW of wind power each.

In total, more than 1,400 utilities purchase or own wind power directly or through wholesale electric power providers, including joint action agencies, generation and transmission cooperatives, and other authorities. This means that over 43% of the 3,250 electricity providers in the U.S. have wind energy in their generation mix.

Helping to drive the drop in wind prices is the larger wind-swept area of the turbine blades and the taller wind towers, along with improving turbine production and a subsequent improvement in net capacity factors. Not only have...

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