Though
the wind that blows over our head does not cost us a
cent, the cost of harnessing it for the purpose of
generating electricity do cost a bit. However, it is
encouraging to observe that in spite of the cost of
equipment, the higher shipping charges for bringing the
equipment from elsewhere (most large scale turbines are
not exclusively manufactured in the US) and other
incidental expenses related to their installation, the
overall cost of
wind power generated
electricity is showing a downward trend. And in the not
too distant future, it is likely to fall further. And
when you consider the fact that once the personal wind
power system has been installed the power bills are sure
to go down dramatically, it becomes a great idea indeed.
Yes, over time, wind power is sure to save you a lot of
money.
The
lion’s share of the cost of power from wind
generators/turbines is taken by the up-front fixed cost
of installation, the expenses incurred in operating and
maintaining them on an ongoing basis, together with
royalties payable to the sponsoring landholders who have
allowed the installations at their sites as also the
local taxes and tariffs. On top of all that comes the
question of decommissioning reserve fund generation, an
issue so far unthought-of. It was previously believed
that the cost of decommissioning (dismantling and
removal of the turbines at the end of their workable
life) would be more than compensated by their salvage
value; a theory no more workable
today.
Nevertheless,
most of the long-term costs that involve wind power
generation from a commercial point of view are given
below.
Ø
Up-front
fixed costs
Ø
Performance
related costs
Ø
Operation
and maintenance costs
Ø
Taxes
and tariffs
Ø
Financing
costs
But
the good news is, if you can learn how to build a wind
generator, you can decrease the cost in installing the
system as well as you can get the parts in the local
hardware store itself. No, learning how to do it, and
the actual process is not that difficult really – you
can yourself do it, without any professional
help.
The
up-front fixed cost in regard to a commercially viable
wind energy project involves the purchase cost of the
turbines and their components, their delivery,
installation, interconnection to the nearest electric
grid and many other minor but essential issues.
Moreover, project developers also pay for
pre-construction development schedule related to land
leases. Permits, engineering, contracting and community
outreach. Expenses are also incurred for wind
assessment, site studies and erection of costly turbines
at appropriate height and
location.
Performance
related costs are variable since they in turn are
related to capacity factors. As wind power projects do
not consume any fuel, the lower will be the per-unit
cost of energy if more of the fixed costs are spread
over more units of production. Conversely, the lesser
the number of producing units, higher will be per-unit
cost of electricity.
As
for operation and maintenance cost, once a project is
commissioned, its owner has to incur all these. However,
these involve staffing of technicians, checking of
turbines, payment of royalties to landholders and taxes
and insurance.
In
the project finance set-up, costs of development and
construction financing interests are characteristically
brought into the project’s permanent financing along
with developer fees and equipment
costs.
It is always a good idea to make your own power – you will thus be able to reduce the cost of wind power to a great extent. And once installed, you will successfully reduce your power bills and also contribute to clean up the environment. All you need to know is where to set up the system in your home, how to set it up, how to wire the system, where to get the parts cheaply from and of course the safety precautions that must always be followed.
