According to the Energy Information Administration, last year’s average wholesale electricity price in the PJM grid was around $42 per MWh. In bold, below, you plainly see why BigWind is not profitable without our taxpayer handouts (even though they received $67/MWh)…even in windy areas like Illinois. This also explains why electricity rates have skyrocketed, all over the world, where BigWind has a strong presence – and – why electricity rates are now rising in USA states which have a larger wind presence. And, who is buying Big Sky? Everpower, the company wanting to build multiple wind sites in central Ohio. An important question to ask is this, what will these areas do if these turbines become ABANDONED? How will this affect their farmers, as the turbines dilapidate? How will it affect the local tax rate? How will it affect neighboring property values? How will it affect future economic growth?….
Suzlon Energy Ltd., the Indian wind- turbine maker in default on $209 million of bonds, may take over one of Illinois’ biggest wind farms if it’s unable to collect a loan it made for the project.
That would stymie two years of efforts by the cash-strapped manufacturer to recover money it needs to pay its own creditors….
Most wind farms sign 20-year power sale agreements with a utility to lock in prices and secure revenue streams. Big Sky doesn’t have one and sells its output on the spot market in the 13-state PJM Interconnection LLC grid, Edison Mission spokesman Douglas McFarlan said in a Feb. 18 e-mail.
The average 24-hour price near Big Sky last year was about $35 a megawatt-hour, according to data compiled by Bloomberg. Including tax credits and a government clean-energy cash grant, Big Sky may have earned an average of $67 a megawatt-hour last year, BNEF’s Grace estimated.
The project probably needs to earn $80 a megawatt-hour on average over its lifetime to meet a 10 percent hurdle rate, or the minimum acceptable rate of return for an investor, she said….
via Business: Washington Post Business Page, Business News.