Understanding Wind Power Systems - Wind Power: Politics and Policy - page 39

Energy provides a forward perspective on this phenomenon, estimating
that the cost of wind power can be expected to decrease by 4 to 10% each
time the aggregate market capacity doubles. 11
Overall, progressive technological advances, technological economies of
scale, and production economies of scale helps explain why many experts
believe wind power costs will decrease substantially in coming decades. 12
Some estimate that the cost of wind power will fall to approximately US2¢
per kWh within the next three decades. 13 Others counter that rising steel
costs will impede wind system cost improvement. Even if costs do fall further
to a US2-5¢ per kWh level, this does not guarantee that a speciic wind proj-
ect will generate power in this range. Minimizing cost depends on a number
of other factors that will be touched upon as this chapter progresses.
2.2.3 Delivering Wind Power to the Grid
Inauspiciously, wind farms are often sited in remote areas to take advantage
of land availability and obviate social opposition. 14 he distance from the
site to the electricity grid inluences connection costs in two ways. First,
spatial separation from power grids means that longer transmission net-
works need to be built. In the United States, this can add as much as US$80
per meter to the cost of a wind power project. 15 Second, energy dissipates
as it travels along transmission lines. Power leakage increases as distance to
the electricity grid increases. It has been estimated that transmission and
distribution (T&D) leakage can be 10% or more of energy produced. 16 Two
factors have the most inluence on leakage—distance and the type of elec-
tricity conduit used—and knowledge of these two factors allow engineers to
estimate leakage with a degree of accuracy. 17
One other grid connection factor that inluences generation cost is
the voltage capacity of power lines installed to carry power to the grid.
he voltage level limits the amount of power that can be delivered to the
grid. 18 Consequently, power line capacity can inluence the size of wind
farms or necessitate investment in storage systems or substations to regu-
late voltage.
2.3 WIND POWER MANAGEMENT CHALLENGES
2.3.1 The Challenge of Matching Supply and Demand
Even in ideal situations, electricity load management is complicated by
demand-side variances. Demand for electricity varies by season, by week,