It is time for the federal government to stop wasting taxpayer dollars on subsidies for wind power. In its Annual Energy Outlook 2017, the Energy Information Administration (EIA) compares the levelized costs for units coming online in 2022 and found that the levelized cost of wind turbines is competitive with the levelized cost of new natural gas combined cycle units even without wind power's most significant subsidy--the Production Tax Credit (PTC).1 And, with the production tax credit, wind turbines are 18 percent less than a new natural gas combined cycle unit, according to EIA. With levelized costs competitive with its closest competitor, natural gas, there is no reason to continue to subsidize wind power.
Further, wind turbines pose others problems. Due to the uncertainty and intermittency of wind resources, reliable electricity sources must be available so grid operators can quickly power the grid up or down. This creates additional costs to the system and results in greater emissions than if more reliable electricity sources were to run at their normal rate. And, the best wind resources are usually located in remote locations, causing the need for extra transmission infrastructure and power loss inefficiencies. Further, a British study has found that the life of wind units is on the order of 12 to 15 years, rather than the assumed life of 20 to 25 years.2
