The World's #1 Renewable Energy Network for News, Information, and Companies.

AWEA Study Responds to Wind Industry Criticism

The American Wind Energy Association (AWEA) issued a report seeking to refute some power industry criticism about the market effects of wind.

In particular, AWEA said it rejects arguments by Exelon (NYSE:EXC), which the trade group says “has been leading a campaign to undermine broad bipartisan support for wind energy with the argument that the renewable Production Tax Credit causes frequent occurrences of negative electricity prices at Exelon’s nuclear power plants.”

AWEA and Exelon underwent a very public split a couple of years ago when the wind association effectively kicked Exelon out of the group after Exelon publicly called for an end to the PTC.

“Exelon’s campaign confuses the consumer benefits of wind energy with an exceedingly rare and isolated issue called negative pricing,” said AWEA Senior Electric Industry Analyst Michael Goggin said.

“Grid operator data show Exelon has overstated the frequency of negative prices at its nuclear plants by a factor of 20, and that in fact the majority of these negative prices were actually caused by Exelon’s own nuclear plants and not wind,” Goggin said. “Regardless, negative price occurrences are being eliminated anyway by long-needed grid upgrades.”

The real threat to Exelon, and the economics of nuclear generation in general, come from cheap natural gas and weak electricity demand, AWEA said in a statement.

Exelon did not immediately provide comment on the report titled “The facts about wind energy’s impacts on electricity markets.”

Exelon and other critics have said that because wind receives productive-based tax credits it often provides power to the grid during times when market prices are so low that other generators would be losing money – hence the term “negative” pricing.

Exelon and some other industry players have said that wind power is now a mature technology that no longer needs a subsidy from the PTC.

AWEA says negative pricing happens rarely and can often be attributed to other factors. “The cause of many of the remaining negative price occurrences appears to be the inability of Exelon’s nuclear power plants to reduce their output during periods of low electricity demand,” AWEA said.

The current PTC expired at the end of 2013 but is still available for wind units that entered “construction” as defined by the IRS, by the end of 2013. As a result, lots of new wind generation is on the way. Wind supporters are trying to revive the PTC in some form.

This article was originally published on GenerationHub and was repubished with permission.

Lead image: Wind turbine via Shutterstock

RELATED ARTICLES

GE Digital Wind Farm

GE Introduces Digital Wind Farm that Could Boost Production 20 Percent, Re-ignites Alstom Buyout Talk

Meg Cichon, Associate Editor General Electric (GE) is pushing its wind farms to join the big data revolution with its new Digital Wind Farm, announced this week at Windpower 2015 in Orlando, Fla. amidst talk that its $15 billion offer to buy Alstom’s p...
Wind turbine

Bigger Wind Turbine Towers = Bigger US Development Opportunity

Meg Cichon, Associate Editor Wind energy already accounts for about 5 percent of U.S. electricity generation, which crowned the nation as the global leader in wind production late last year. There is now more than 65 gigawatts (GW) of capacit...
Wind turbines

Wind Energy Is Crucial in the Fight Against Climate Change, Says US Energy Secretary

Meg Cichon, Associate Editor

The opening general session at Windpower 2015 marked the first appearance by an U.S. energy secretary at the show, “which is surprising,” said current energy secretary Ernest Moniz, “but better late than never.”

Renewable Power Can Now Flow All Over Europe

Rachel Morison and Weixin Zha After almost two years of delays, Germany, France and their neighbors in central-western Europe connected their electricity markets on Wednesday under a system that lets prices dictate where power flows between countries. F...
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL F...

CURRENT MAGAZINE ISSUE

03/01/2015
Volume 18, Issue 3
file

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in Brazil – in partnership with GWEC, the Global Win...

Brazil is one of the most promising markets for wind energy.  Ranke...

Energy Storage USA 2015

Energy Storage USA is the leading conference in the United States focuse...

Wind Power Central America

Wind power projects are expected to reach 46GW of total installed capaci...

COMPANY BLOGS

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

Are You Ready for a Natural Disaster?

Guest post by Jenna Clarke  Living in the Shenandoah Valley of Virg...

Deadline for Inclusion in Solar Power World's Top Solar Contractors...

UPDATE: The official deadline for the Solar Power World T...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS