Saturday 20 March 2010

Wind Energy Keeps Iowa Electric Power Costs Down

mobile.wallacesfarmer.com
Wednesday, 17 March 2010

Wind energy accounts for up to 20% of Iowa's total electricity production and is helping to keep the state's power costs among the lowest in the nation. That's according to a study by the Iowa Policy Project, a nonpartisan, nonprofit research group based in Iowa City. Authors of the study say it debunks arguments that alternative energy and other measures to combat climate change are too expensive. "Those people who tell us we can't do anything about global climate change because it will be too expensive are wrong, and Iowa is proving that," says David Osterberg, an Iowa Policy Project researcher and one of the authors of the study.

The study found that wind produced 3,670 MWs of electricity in the state. If that power were used solely within the state it would produce enough electricity to power 940,000 homes; roughly three-quarters of the state's homes. The study notes that MidAmerican Energy is one of the most aggressive utility companies in the nation in developing and producing electricity from wind. The firm recently secured state approval to install another 1,000 MWs of production in Iowa.

Iowa ranks second in wind power production, could produce more
Iowa continues to rank second to Texas in wind energy production in the nation. The study points to research from the National Renewable Energy Lab showing that roughly three-quarters of Iowa has enough wind at the height that the tall wind turbines stand aboveground to efficiently produce wind energy. "Thus, even as Iowa is leading the way in harnessing wind energy, there is significant room to increase our use of the wind's renewable power," says Osterberg.

"America need not fear taking strong steps to address climate change, as these new estimates of Iowa wind production and potential production show," says Teresa Galluzzo, another author of the study. Coal-fired plants produce about 75% of the state's electricity, and there is one nuclear plant in the state.

Massive expansion of wind power helps keep electricity costs down
In examining electricity costs, the study found that Iowans paid about 6 cents per kW hour in 1998. That climbed to 7 cents per kW hour by 2008. Over the same period, national average electricity costs went from 7 cents per kW hour to nearly 10 cents. "Amidst Iowa's massive expansion of wind power, our average electricity prices have remained below the national average. In fact, they've not increased as quickly as the national average price in the last four years," says Osterberg.

The study says MidAmerican is the national leader in wind generation by rate-regulated utilities, with 1,393 MWs either in operation or under construction. That's in addition to the 1,000 MWs of capacity approved by the Iowa Utilities Board this past December, which means MidAmerican will be able to add another 1,000 MWs to it's production capacity.

Wind energy production tax credit helps create clean energy
The study says Iowa is the seventh windiest state in the nation. One shortfall the study found is in determining how much of the electricity produced in the state is actually consumed within its borders. When power is shipped into the electrical grid, it is pooled together and it is difficult to determine which portion of the power comes from which source.

Upon hearing that Iowa's wind energy production now accounts for up to 20% of Iowa's electricity, U.S. Sen. Chuck Grassley, R-Iowa, commented that "Iowa has been a leader in producing wind energy and is poised for even greater results in the future. This renewable energy source has not only helped power Iowa, but at the same time has created green jobs for Iowans. The wind energy tax credit that I authored has been a tremendous impetus for the state to harness the power of wind for both clean energy and good paying jobs."

Grassley is the author of legislation that provides the wind energy production tax credit and has worked to see that the credit is extended.

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