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Posted on Aug. 05, 2009

Texas Wind Power: The Numbers Versus the Hype

Texas has repeatedly been lauded as a leader in wind power development. Some of that attention is deserved. In 2008, the state installed nearly 2,700 megawatts of new wind capacity. If Texas were an independent country, it would rank 6th in the world in terms of total wind power production capacity.

The state’s Republican governor, Rick Perry, has been among the state’s most ardent wind power boosters, declaring a few years ago that “No state is more committed to developing renewable sources of energy.” He went on, saying that by “harnessing the energy potential of wind, we can provide Texans a form of energy that is green, clean and easily renewable.” The Lone Star Chapter of the Sierra Club has repeatedly trumpeted wind power development saying that it “means more jobs for Texas, less global warming from coal plants and less radioactivity from nuclear plants.” The group says that wind power in the state “has exceeded all expectations” and has created “an estimated $6 billion investments and 15,000 new jobs” for the state.

Graphic by Seth Myers

In June, shortly before the US House voted on the cap and trade bill, President Obama reminded reporters that Texas has one of the “strongest renewable energy standards in the country….And its wind energy has just taken off and been a huge economic boon to the state.”

Alas, the hype exceeds the reality. The Electric Reliability Council of Texas, the operator of the state’s huge electric grid, has considered the “capacity factor” of wind -- the ability of the generators to produce power at 100% of their maximum rated output – and placed wind’s reliability at less than 9%. In a 2007 report, the grid operator, known as ERCOT, determined that just “8.7% of the installed wind capability can be counted on as dependable capacity during the peak demand period for the next year.” It went on to say “Conventional generation must be available to provide the remaining capacity needed to meet forecast load and reserve requirements.” Earlier this year, the grid operator re-affirmed its decision to use the 8.7% capacity factor.

Thus, Texas now has about 8,200 megawatts of installed wind power capacity. But ERCOT, in its forecasts for that summer’s demand periods, when electricity use is the highest, was estimating that just 708 megawatts of the state’s wind power capacity could actually be counted on as reliable. With total summer generation needs of 72,648 megawatts, that means that wind power was providing just 1% of Texas’s total reliable generation portfolio. And ERCOT’s projections show that wind will remain a nearly insignificant player in terms of reliable capacity through at least 2014, when the grid operator expects wind to provide about 1.2% of its needed generation.

The punchline for the wind power business in Texas is that despite all the hype, the reality is that the Lone Star State will continue to rely on the same fuels that it has relied upon for decades: natural gas, coal, and nuclear.

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Re: Wind
Posted: 12/03/2009 02:13 PM by brian sawyer

I think that we need to focus more on wind power in the future, it could be the final answer of our energy problems..  
 
Thanks for the question Robert
Posted: 08/10/2009 10:17 AM by Michael Goggin

Here are some publications that demonstrate that wind power reduces CO2 emissions:

This one was conducted by the grid operator in Texas for submission to the state public utilities commission; the tables that start on page 100 and go to the end of the document quantify the CO2 emissions savings of various penetrations of wind energy:

http://www.ercot.com/news/presentations/2006/ATTCH_A_CREZ_Analysis_Report.pdf

This DOE report was assembled by over 100 experts and was signed off on by the Department of Energy; it found CO2 savings of 825 million tons per year from a scenario in which wind provides 20% of our electricity:

http://www.20percentwind.org/20percent_wind_energy_report_05-11-08_wk.pdf  
 

AWEA knows better than I
Posted: 08/06/2009 05:13 PM by Dave Dunmire

If Germany’s 2008 total generating capacity was 126GW and the installed wind generating capacity was 24GW, wouldn’t that be approximately 20%?

Perhaps you would believe the German grid operator, E.ON Netz?

“E.ON Netz, the transmission system operator of the E.ON Group, has more

practical experience in integrating large volumes of wind power into the system than virtually any other operator. The Wind Report 2005 covers these experiences.

. . Wind energy is only able to replace traditional power stations to a limited extent.

Their dependence on the prevailing wind conditions means that wind power has a limited load factor even when technically available. It is not possible to guarantee its use for the continual cover of electricity consumption. Consequently, traditional power stations with capacities equal to 90% of the installed wind power capacity must be permanently online in order to guarantee power supply at all times.

. . Wind power feed-in can only be forecast to a limited degree. The transmission system operator must balance out variations between the forecast wind power and the actual feed-in using the short-term use of reserve capacity.

. . In 2004 two major German studies investigated the size of contribution that wind farms make towards guaranteed capacity. Both studies separately came to virtually identical conclusions, that wind energy currently contributes to the secure production capacity of the system, by providing 8% of its installed capacity. As wind power capacity rises, the lower availability of the wind farms determines the reliability of the system as a whole to an ever increasing extent. Consequently the greater reliability of traditional power stations becomes increasingly eclipsed. As a result, the relative

contribution of wind power to the guaranteed capacity of our supply system up to the year 2020 will fall continuously to around 4%.

. . In concrete terms, this means that in 2020, with a forecast wind power capacity of over 48,000MW (Source: dena grid study), 2,000MW of traditional power production can be replaced by these wind farms.”

Oh, I believe Germany’s wind share of demand was 7% in 2008.

 
 

AWEA studies showing CO2 cuts
Posted: 08/06/2009 03:22 PM by Robert Bryce

Mr. Goggin,

You say that wind power cuts CO2 emissions. Can you point me to any peer-reviewed studies that can support that point?

Thanks

rb

 
 

Sorry Dave, you're wrong
Posted: 08/06/2009 01:32 PM by Michael Goggin

The argument that wind doesn't displace fuel use and emissions on a 1 for 1 basis is a common myth. Here are the facts: http://www.awea.org/pubs/factsheets/Backup_Power.pdf

By the way, your numbers on Germany are way off. Germany is at around 8% wind penetration, not 20%. Maybe that accounts for why wind was displacing 8% of fossil fuels?

Michael Goggin, American Wind Energy Association  
 

Don’t confuse the bottom line
Posted: 08/06/2009 12:55 PM by Dave Dunmire

The amount of generation from traditional sources that wind farms can reliably replace is the bottom line. The taxpayers are funding wind farms to replace our dependence on fossil fuels, right? The “displacement factor” represents the generation from coal, natural gas, nuclear, or other sources displaced by wind generation.

Due to seasonal and daily patterns of wind power fluctuating with the weather, capacity factors are not a true measure of the useful production of wind farms. Back-up generation is required from traditional sources to give wind a level of reliability. Plus the use of inconsistent wind energy increases the need for fossil fuel generating plants to operate inefficiently on standby mode.

Germany has the largest amount of wind power capacity in the world, which is approximately 20% of their total generation. The Germans have extensive operational experience with wind farms and have determined that their displacement factor was only 8% in 2004. They project it to decrease to 4% by 2020 as they add additional wind capacity. As intermittent wind power capacity rises, the reliability of the supply system as a whole will lower by an ever-increasing amount, which will require more back up from other sources.

The grid operator in Texas is finding the same results.

 
 

You are confusing capacity factor and capacity value
Posted: 08/06/2009 12:04 PM by Michael Goggin

This article makes the common mistake of confusing capacity factor and capacity value. As the National Renewable Energy Laboratory study cited by the article explains, capacity factor is a measure of the amount of energy produced by a wind plant, while capacity value measures the amount of capacity a plant contributes towards meeting peak electric demand. 30-40% is the typical capacity factor of a wind plant, while 10-20% is the typical capacity value.

Wind plants are being built to provide large amounts of low-cost electricity to reduce the use of expensive fossil fuels and the pollution that results from their use. Folks in Texas can tell you that wind energy has already saved them billions of dollars by reducing the use of expensive natural gas and coal, while also reducing carbon dioxide emissions by millions of tons. Since reducing fossil fuel use and emissions are both issues of energy and not capacity, from that perspective the only metric that matters is the capacity factor of a wind plant. While a capacity factor of 35% may sound low to some, that is actually significantly higher than the capacity factors of other types of power plants. Natural gas plants typically have capacity factors of around 10%, hydroelectric plants are often around 25-30%. Even coal plants typically only have capacity factors that are in the 60-70% range.

For those who would like to delve a little deeper into the difference between energy and capacity, I would suggest this article:

http://www.awea.org/pubs/factsheets/Baseload_Factsheet.pdf

Michael Goggin, American Wind Energy Association  
 

There is a bigger picture to consider
Posted: 08/06/2009 09:16 AM by Chuck Hansen

There are two different numbers that are important for wind generation. The first, as the author mentioned, is the "dependable capacity". This is used in multi-year planning studies for peak load conditions. These studies only look at the peak hour of the peak day of the peak season. Since wind is often low during the hottest summer days, only 8% of the total wind capacity can be counted on as being available.

The "capacity factor" of the wind generation is a higher number--typically about 35%. This looks over the course of the entire year, and tells how much wind ENERGY can be expected.

For comparison purposes, coal & natural gas plants typically have a capacity factor of 90%. Thus, 10,000 MW of wind capacity with a 35% capacity factor will produce the equivalent energy as about 3900 MW of fossil-fuel based generation.

It is well known that wind generation is not very dependable for peak summer needs. But over the course of a year, it will produce a lot of energy, which will displace the burning of natural gas and coal during those hours.

So, it's important to consider both the long-term energy produced by wind, and not just the availability of wind during peak hour conditions. They are two different things.  
 

  
 
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