Texas Wind Power Lowering Electricity Costs (image from zudark on Flickr)

Who says renewable energy cannot make a positive difference?  Just this week, a report was issued by a Wall Street research group, Bernstein Research, to evidence that Texas wind power is lowering electricity costs in the Lone Star State.  Texas is considered a national leader with respect to wind power.  And, world-wide it ranks as number 6 with respect to harnessing the energy of the wind.  As if Texas was a sovereign state!

With more Texans using wind power, there has been less reliance on natural gas-fueled generators which has, in turn, had the effect of lowering electricity costs.  As explained in the Bernstein Research report:

[A]t hours of relatively low power demand, it will no longer be necessary to dispatch high cost gas fired generators to meet the prevailing load; rather, the system’s wind, nuclear and coal fired power plants will be sufficient to meet demand. As power prices are set by the variable cost of operation of the last unit dispatched, wind can have a material impact on the price of power.

Because its so costly to run natural gas (and/or coal) generators to meet peak demand, the explosive growth of Texas wind power will significantly impact power prices, further lowering electricity costs.  When demand for natural gas declines, there will be a resulting glut in its production.

The Bernstein Research report predicts that “The growth of wind power in ERCOT over the next three years will markedly lower the consumption of gas and coal by conventional generators.”  In other words, Texas wind power will continue to lower electricity costs, while also depressing the demand for natural gas and coal.

Renewable energy news like this is just the kind of spark we need to continue interest and investment in wind power.  The rest of the world will be watching the number 6 wind energy producer, and perhaps to take a few notes from the Bernstein report, as well.

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