Last time I looked at wind power was in 1999 on the eve of deregulation. We went so far as purchasing land in Ft Mcleod, got a space allocation from Transalta to a local transformer, and engineered the site for a 10 MW wind farm. We ran an anemometer for 3 years gathering wind data that we could present to the bank for a loan (around 10 million at the time).
At the end of the 3 years we overlaid all the data (wind speed and duration) on the spot price of power to check the economics. It made sense, but barely. I believe the price had to be $0.08/kWh to be viable. No bank would touch us to go ahead with the development.
We ended up selling the data to a private company who spun it off to Enmax who had a project nearby, and also sold our "spot" in line on the transmission end. We also sold the land at about a 200% profit to the hutterites for a cattle farm, so that was nice.
Looking at the spot price these days and taking into account inflation on the manufacturing end for the turbines, I have a real tough time believing it's anywhere near viable let alone profitable. I would have to see the actual numbers, but without heavy subsidies I don't see private industries touching it.
Another factor to consider is the location. You can't just stick a wind tower wherever it's windy; you need the distribution infrastructure to service it. Last I checked (admittedly 10 years ago) the windiest spots in Alberta (Pincher Creek to Lethbridge) we using up all the available capacity. There are viable sites, but no way to get it to the grid and on the market.
So that all begs the question: Who pays for all this? I love renewables, but it's a tough sell economically to private business or to the average joe who doesn't want to see tax increases (especially now) to subsidize the generation and transfer of renewable energy.
Last edited by Tron_fdc; 03-14-2016 at 01:39 PM.
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