Wind Power a winner in gas-rich Texas
Wind power has become the cheapest electricity source in the capital of Texas, the largest U.S. gas-producing state, after costs for gas and other generator fuel soared.
The Austin, Texas, city council voted Thursday to hold a drawing in March to determine which municipal utility customers will be allowed to switch to wind power. More customers are expected to request wind power than the utility has available because it will save a typical resident about $16 a year.
Councilman Brewster McCracken said, this appears to be the first time that a renewable energy source became cheaper in competitive bidding than electricity from traditional power plants.
Austin this month raised rates for conventional power to catch up with increased fuel costs, after U.S. gas futures, almost doubled last year. Austin’s wind power prices are fixed under a long-term contract. Gas futures touched a record $15.78 US per million British thermal units on December 13. The futures traded below $2 dollars in 2002. Gas fuels about 70% of power generation Texas.
Wind power also has become big in Texas. Since 1999, more than 1,200 Megawatts of renewable power generation, mostly from wind turbines, has been built in the state, according to the Texas Public Utility Commission. Another 1,100 Megawatts is under construction or planned.
Texas ranks second to California in U.S. wind power production, according to the American Wind Energy Association.
Electricity from wind turbines and other renewable sources typically sells at a premium to power produced from coal, gas and nuclear generation, even with government subsidies, because of high construction cost.
Article appeared in the Edmonton Journal on January 13, 2006, as supplied by Bloomberg News.