Can Wind Power Make a Profit?

Filed in archive Wind on June 23, 2009

© Tracy O

Forbes took a look at that question this month.

Forbes looks at one specific example...

A windmill doesn't make economic sense, even though this poor entrepreneur is gouged 19 cents per kilowatt-hour from his utility. A 121-foot, 100-kilowatt turbine from Northern Power runs $500,000, installed. The air at Driscoll's site on Long Island Sound is so still that the average output would come to only 18% of peak output, meaning that the juice would be worth $30,000 a year. It's hard to cover the interest on a $500,000 loan with a $30,000 annual payback.

It's not an unusual example.

One solution no one likes to talk about, raise the cost of electricity. In the debate on alternative energy sources, many people try to avoid discussing the fact that the cost of a kilowatt hour of electricity is going to go up whether we like it or not.

That said, the fairly small U.S. wind market grew 78% in 2008 according to Renewable Energy. They also say that the long term prospects for wind energy remain strong.