Environmental Engineering Reference
In-Depth Information
Competitive Renewable Energy Zones
The cost of connection of wind plants and any renewable power source to the grid is an
issue that can be solved in several ways. Some states have established competitive renewable
energy zones (CREZ) connected to the existing grid by new high-voltage transmission lines.
The cost of the new lines, at about $.5 million per mile, will be paid by all the consumers
across the state. This is similar to the German business model where the power companies
were required to bring the power lines to new wind projects, again at no cost to the wind
project developer.
Foreign Wind Energy Industries
On a global scale the wind power development picture is more complex, with different
markets driven by various combinations of carbon reduction requirements, fuel supply short-
ages, and growing demands for electricity (especially in developing countries). Table 4-4
shows installed wind capacity in the top 0 countries at the end of 2007. Development of
wind energy in the world did not take place in an economic or political vacuum. As in the
United States, increases in the international price of oil spurred interest in wind technology.
Future changes in the price of oil and other competing energy sources will determine the
economic viability of wind power in the future.
Table 4-4.
Worldwide installation of wind energy generation capacity at the end of 2007.
[Global Wind Energy Council 2007]
Rank
Country
Wind power
capacity
(MW)
Relative
capacity
Germany
22,247
23.7%
2
United States
6,88
7.9%
3
Spain
5,45
6.%
4
India
7,845
8.4%
5
Peoples Republic of China
5,906
6.3%
6
Denmark
3,25
3.3%
7
Italy
2,726
2.9%
8
France
2,454
2.6%
9
United Kingdom
2,389
2.5%
0
Portugal
2,50
2.3%
Total in top 0 countries
80,805
86.%
Other countries
3,060
3.9%
Total worldwide
93,864
00%
A number of noneconomic factors will also influence the ability of wind power to com-
pete with other energy sources. Foreign and domestic political considerations, international
trade policies, and local and regional concerns are all expected to influence the future develop-
ment of wind energy. European and some Middle Eastern countries also instituted financial
incentives to develop alternate energy sources. Although most of these programs were asso-
ciated with tax credits, other incentives were employed, such as partial government subsidies
of early projects.
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