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View Diary: DK GreenRoots: the economics of wind power (114 comments)

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  •  Amazing admission, if I understand well (2+ / 0-)
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    Winnie, Joffan

    indeed! So if wind penetration becomes high, then what??? I wish Jerome would explain. May be it's a typo?
    BTW, carbon does not respect markets, because if coal was submitted to the same crierions as nuclear, with its billion tons of waste, it would be uneconomical...

    Patrice Ayme Tyranosopher

    by patriceayme on Sat Jul 04, 2009 at 12:26:20 PM PDT

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    •  The point is that in the long run, the economic (1+ / 0-)
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      benefits inherent in wind power require government intervention in the market, so that the fixed costs of wind power get partially funded outside of whatever the spot price is on the days when they are generating maximum electricity.

      To put the torture behind us is, inevitably, to put it in front of us.

      by UntimelyRippd on Sat Jul 04, 2009 at 01:00:34 PM PDT

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    •  you'll note, by the way, that jerome claims in (3+ / 0-)
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      Ignacio Magaloni, Winnie, BruceMcF

      a comment that the same phenomenon applies to nuclear, and that this is why nuclear energy is best operated as a state-owned utility.

      To put the torture behind us is, inevitably, to put it in front of us.

      by UntimelyRippd on Sat Jul 04, 2009 at 01:03:19 PM PDT

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    •  There more benefits it delivers to ... (2+ / 0-)
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      RunawayRose, Winnie

      ... customers, the lower the return for selling at marginal cost.

      Its a long established result that competitive markets with low barriers to entry tend to price to marginal cost, and when the cost effective production has very high fixed cost share and very low variable cost share, its marginal costs are also very low.

      Its also one of the factors that keeps nuclear penetration relatively low, and biases market driven solution toward fossil fueled power with a higher share of their cost as variable costs for the purchase of fuel.

      Progressive Economics Shortcut: just read the billy blog

      by BruceMcF on Sat Jul 04, 2009 at 01:55:20 PM PDT

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