Monday, April 8, 2013

Price Changes Favorable to Wind

Since April, 2012 the price of natural gas on the NewYork Mercantile Exchange has risen by almost $2 per 1000 cu.ft.  (http://www.eia.gov/dnav/ng/hist/rngwhhdM.htm;  http://www.wtrg.com/). At the same time, the IRS reports that the average cost of electricity from wind was $42.30 per MWh last year (north american windpower, IRS:PTC will be Worth Slightly More In 2013, 04 April 2013 ). I had been using $55.

On the other hand, I have been using $23.1 per MWh as fixed costs for gas. According to EIA (Levelized Cost of New Generation Resources in the Annual Energy Outlook 2012) the actual value is $19.1. So I have been overestimating the cost of gas-powered electrical generation by $4 per MWh.

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