Below are some basic answers to frequently asked questions about wind power and utilities.

Does wind power have to be backed up by fossil fuels on the grid?
Is it difficult to add wind power to a supply mix?
What are the cost benefits of using wind power?
How do customers feel about wind power?

Q: Does wind power require back-up by fossil fuels on the grid?
A: Given the size of the U.S. mainland electric grid, even large amounts of wind power would require little to no backup by fossil fuel. In a 2004 study, the Minnesota Department of Commerce found that 1,500 MW of wind generation would require only eight MW of “spinning reserve.” Spinning reserve refers to generation resources that can come online immediately to make up for any sudden shortfall in supply.

Furthermore, there is usually already more spinning reserve available on a system than would ever be required by any single wind farm or series of wind farms. Typically, the electricity grid operator maintains enough spinning reserve to insure there are no disruptions should the two or three largest generation sources go offline, for example a large nuclear or coal plant.

Sources: Minnesota Department of Commerce / Independent System Operator of New England

Q: Is it difficult to add wind power to my supply mix?
A: Utilities can typically add wind generation to their power supply mix without major adjustments in the planning, operations, or reliability of their systems, according to several recent studies that included modeling wind integration scenarios, as well as experience in Europe.

Costs range from $5/MWh to zero beyond the integration costs that are the norm for conventional technologies. The level varies with size of region, type of tariff, transmission capacity, flexibility of other generation sources, and level of penetration.

Source: American Wind Energy Association

Q: What are the cost benefits of using wind power?
A: Wind power provides a hedge against fossil fuel price volatility since the ongoing costs of wind energy are relatively fixed. This ability to hedge fuel price fluctuations in a utility generation portfolio mix, combined with increasing customer awareness and demand for renewable energy, has increased the value of wind energy to utilities.

Over the past 30 years, the kWh cost of wind energy has fallen dramatically. Increased turbine capacity, new research and development, manufacturing improvements and operating experience have all contributed to the decreased cost.

Sources: American Wind Energy Association / Wind Powering America: Third Annual All States Wind Summit

Q: How do customers feel about wind power?
A: Studies show customers are increasingly concerned with the environment and renewable energy, and supportive of wind power. Ratepayers may see several benefits from wind power, including:

• Ratepayers could see more stable and predictable electric prices thanks to long-term agreements with utilities. Once a wind farm is built, the cost of wind power can remain stable because there are no fuel price increases or volatility.
• Wind power is affordable: The cost of natural gas and other fuels has been going up over time. The cost of wind energy has come down by 80% since the 1980s, and even with recent increases (due to increases in the prices of steel, copper and other materials due to global economic expansion) is in a range that is competitive with new conventional power plants (levelized cost).
• No new pollution: No additional emissions of sulfur dioxide, nitrogen oxides, particulate matter, mercury, carbon dioxide, radioactive or toxic waste.
• Customer preference: Public opinion surveys show overwhelming support for more wind power, even if it might increase rates.

Source: American Wind Energy Association