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Oct 16, 2013

FACT CHECK: Fossil-Funded Think Tank Strikes Out on Wind Costs

Michael Goggin, Manager of Transmission Policy at the American Wind Energy Association, today  provided a careful analysis of the highly flawed, and blatantly biased report just issued by the fossil-funded Institute for Energy Research.  His post begins below and continues in its full form on the AWEA blog here.

After two failed attempts to attack wind energy earlier this month, the fossil-fuel-funded Institute for Energy Research (IER) has now struck out swinging (strikes one and two are documented here). Strike three comes from a report written by Michael Giberson that relies on obsolete data and largely regurgitates anti-wind myths that have already been debunked. As a result of those mistakes, IER’s report overstates the actual cost of wind energy by around 100%.

The reality is that wind energy is driving electricity prices down, thanks to large recent reductions in its cost. Contracts that utilities signed to purchase wind energy, which were approved by state regulators and filed with the Federal Energy Regulatory Commission, document that the average purchase price for wind energy was $40 per MWh in 2011 and 2012.

While IER tries to hide behind old data and theoretical estimates, it cannot escape from the real-world data proving that utilities are signing low-cost contracts to purchase wind power. It is strange that an organization that claims to support free-market price signals would use government estimates instead of price data from signed contracts.

Wind energy’s costs have fallen by more than 40 percent over the last four years. These cost declines have been driven by technological improvements as well as the development of a domestic wind-turbine manufacturing sector that now builds over 70 percent of wind turbine value in the United States.

This post continues on AWEABlog, you can find the full text here:  http://aweablog.org/blog/post/fact-check-fossilfunded-think-tank-strikes-out-on-cost-of-wind