Cape Wind: Go or No Go?

Replies to This Discussion

Permalink Reply by John T on September 25, 2008 at 7:12am

The cost of installing wind turbines is certainly not cheap, but similar to that of nuclear now. I have seen numbers like $6/watt for wind, up to $7 for nukes. The issue with nukes which are clearly NIMBY projects, is that they have an annual $1/watt-year cost after that, whereas wind is very minimal as there is no fuel.

As for saving money with wind, the old saying applies, it depends. The big issue with any technology is that the asset is not owned by the people, it is generally owned by a third party, who expects a profit. If for instance BlueWater Wind LLC comes along and installs the turbines and owns and operates them, they will expect 10-15% profit. They sell it to the power companies who tag on their costs, and then put additional charges on for delivery and services charges, capped off with a nice healthy tax. Now if the State or local municipality owns the turbine, like the town Hull in the Cape, then they can sell the power right there, with their own connections, no power company costs, no third party costs.. The first turbine has already paid for itself in less than 7 years, which is about a 12% compounded rate of return.

I live in New Jersey, and the local municipalities are getting into the act. In my town the school roofs are covered with solar panels. They cost about $2.3 million. In two years, they have saved $700,000 in electricity, so again a 6 year payout is expected. And this did not include the offset from incentives from the State. This is the raw savings. However, if the solar array was owned by a third party and sold to the utility, the schools would have to pay more not less.

Also consider that the power generation charge is only about 30% of your bill. It should be itemized. Transmission is the next biggest charge, followed by taxes and the connection fee/service fee. If the cost of generating the electricity is cut by say 30% by using wind, your bill would only go down by 10% or so.

I believe the electric rates on the Cape are over 20 cents/kwh. I would guess that the transmission or delivery charge is significant. Why? From my readings, the Cape has purchased power from Tennessee (TVA), not from a local plant. The transmission charges would be expensive in this case. NJ sells power to Long Island, here again the transmission charges are steep.

You might want to consider solar panels on your own roof. The tax credits are being extended assuming the recent Bill passe in the Senate and gets signed by Bush. You will save the generation charge, the transmission charge, and the taxes on these two elements. You will still have to pay the service charge if you stay connected. Your payout will likely be over 20 cents/kwh. You will get about 1.2 kwh/day average so around $100/yr. The panel cost minus the rebate will be about $700, so a 7 year payout. Panels have a life of 25 years or more. Plus consider that electric rates are not going to go down, only up, so your savings will be even more.

Plus, solar panels are made right in Massachusetts, Evergreen solar. What a deal.

Permalink Reply by Nick Signore on August 3, 2008 at 2:08pm

I don't think you're comparing apples-to-apples. You would have to compare the monthly expense of:

- a new wind-farm w/ startup costs amortized over 10-50years. After the initial bringup, the only costs would be maintenance & taxes.

- a new coal, nuclear, oil, or natural gas plant amortized over the same period. After the initial bringup, there is maintence, as well as a steadily increasing cost of the materials providing the energy, plus the carbon taxes, etc.

All that matters is the cash-flow, and how secure the investment is.

Permalink Reply by Charlie Waite on August 4, 2008 at 9:49am

When I read and hear what people like T. Boone Pickens are doing .... I am reminded of the fact that according to history .... not too many people believed in what Columbus was attempting to do either.

Sometimes everyone needs to DO SOMETHING ... EVEN if it is wrong.!!
It is indeed a rare occurrence when a person or persons are successful on their very first try. THAT is always the cost of finding ANY elusive solution to difficult equations.

My vote is to TRY !! I believe the cost of almost any new venture is highER to begin with than the status quo.

WIND and solar ????? I say GO FOR IT !!

As for costs .... who knows for sure ..... I NEVER expected my own meager household electrical and fuel oil bills to escalate at the rate they have this past year !! And they are predicted to jump another 40+% this coming winter.

But yet .... after having just endured an 18hour 10 minute power outage YESTERDAY ..... those lights NEVER looked more beautiful than they did @ 9:51 last night.

Good Health TO ALL ..... Charlie

Permalink Reply by Charlie Waite on August 6, 2008 at 6:12pm

You got that one right Paul ...... I'll SECOND that !!

On a"lighter note" .... EITHER THAT or figure out how to "can" all this WIND and GAS about SHOULD WE or SHOULDN'T WE !!!

That is where my hat is off to T. Boone .... putting his 'Money where his mouth WAS !!

Permalink Reply by Gary on August 19, 2008 at 12:11pm

I fully support the Cape project; can we also consider the Berkshires and Mohawk valley? Less populated and it has a natural wind current that will serve the whole metro west community.

Permalink Reply by Gary on August 19, 2008 at 12:13pm

Anyone know of a group that is taking contributions that can be used as a tax deduction? If so, I want to contribute ASAP..that is really where it matters most.

Permalink Reply by Martin Sandler on September 2, 2008 at 9:34pm

GO

Permalink Reply by Christian on October 2, 2008 at 5:10pm

It's a go, despite the reported "bad" scenery created by the turbine, I think it's a go I've seen the area from the air and have seen nothing bad about it. Clean energy!

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