Department of Energy Report on Wind Power

This week, the Department of Energy (DOE) published a report titled “U.S. Wind Power Installation, Cost, and Performance Trends: 2007.” The report begins with an overview of key wind power development and installation-related trends, including trends in capacity growth, in turbine make and model, and among wind power developers, project owners, and power purchasers.

It then reviews the price of wind power in the United States, and how those prices compare to the cost of fossil-fueled generation, as represented by wholesale power prices.

Next, the report describes trends in installed wind project costs, wind turbine transaction prices, project performance, and operations and maintenance expenses. Importantly the report finds that "larger balancing areas, such as those found in RTOs and ISOs, make it possible to integrate wind more easily and at lower cost than is the case in small balancing areas"

Finally, the report examines other factors impacting the domestic wind power market, including grid integration costs, transmission issues, and policy drivers. The report concludes with a brief preview of possible developments in 2008. The report is available for download here.