A Utility Perspective of Wind Energy - Wind Turbine Technology: Fundamental Concepts of Wind Turbine Engineering - page 739

Carbon Markets
Carbon offsets are expected to create a market for wind power. Wind energy can be sold
to offset CO 2 and other greenhouse gas (GHG) emissions from power plants. A carbon mar-
ket was created initially by the European Union in 2005. The first auction of CO 2 allowances
in the United States was in September 2008. Six Northeastern states offered allowances that
sold at a clearance price of $3.07 per allowance. Companies purchasing the allowances can
use them to offset future GHG emissions. The money raised will be distributed to the states
for activities that reduce emissions. This could include financial support for wind power.
As climate change becomes more visible, regulatory efforts to mitigate climate change
are expected to expand. The World Bank estimated that the emerging carbon market in 2007
is valued at US$64 billion (€47 billion) worldwide [Capoor]. This, in turn, has stimulated
wind energy development as a means of accomplishing carbon abatement, and has motivated
individuals, communities, companies and governments to cooperate to reduce emissions.
Concluding Remarks
Most utilities consider the issues discussed in this chapter to be part of the challenges
that can and are being overcome by joint efforts between the wind power plant developers
and the electric utility industry. Load swings, problems in balancing and controlling the flow
of electricity throughout the grid, and complex financial decisions are routine in the electric
power industry. The simplicity and modularity of wind power plants makes them adaptable
to the solutions required to overcome these challenges. Modern wind turbine technology has
made wind energy an attractive option for electric power generation world-wide.
References
Capoor, K., and P. Ambrosi, 2008, State and Trends of the Carbon Market , Washington,
D.C.: World Bank Institute.
DOE, 1990, “The Potential of Renewable Energy: An Interlaboratory White Paper,”
SERI/TP-260-3674, Golden, Colorado: National Renewable Energy Laboratory.
DOE, 2008, “20% Wind Energy by 2030 - Increasing Wind Energy's Contribution to
U.S. Electricity Supply , ” DOE/GO-102008-2578: U.S. Department of Energy.
Energy Information Administration (EIA), 2007, Electric Power Annual, Report Released
October 22, 2007.
EPRI, 1979, “Electric Power Research Institute, Technical Assessment Guide,” Special
Report EPRI-PS-1201-SR, Palo Alto, California: Electric Power Research Institute.
EPRI, 1993, “Wind as a Utility-Grade Supply Resource: A Planning Framework for the
Pacific Northwest,” EPRI TR-102094, Palo Alto, California: Electric Power Research
Institute.
Ewart, D. N., et al. , “Power Response Requirements for Electric Utility Generating Units,”
Proceedings 1978 American Power Conference , Vol. 40.