After three years of trying, it looks like Gov. O’Malley will get his offshore wind bill through the MD legislature this year. Republicans are whining about the subsidy that O’Malley wants to support investment. They don’t understand that once the turbines are in place and in operation, they will drive down the cost of power for everyone in PJM.
Energy blogger John Hanger had a post today about the rapid drop in wholesale power prices. Hanger correctly notes the power of sun and wind power in electricity markets:
Large amounts of new wind and solar generation, including behind the meter solar systems, are still another factor pushing prices downward. Wind and solar installed capacity added in 2012 will generate an amount of electricity equal to 7 Three Mile Island nuclear units. That’s a lot of new supply.
Also wind and solar have the lowest production costs of any generation in the power markets. They are pure price takers, meaning that they bid zero and take the market clearing price for their electricity production. By doing so, wind and solar especially put downward pressure on market prices and save consumers substantial money.