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Gianluca Baratti, writing for Bloomberg Press notes “Because their fuel is free, wind turbines undercut traditional generators that burn coal, natural gas and oil.” I would point out that wind turbines Use No Fuel – there is no resource that is consumed when a turbine, spinning in the wind, generates power.
Feb. 6 (Bloomberg) — Spanish windmills owned by Iberdrola SA and Endesa SA may generate a record amount of electricity next week, slashing local power prices to three-year lows.
Spanish Windscape, copyright (c) Bloomberg, 2009
An Atlantic Ocean storm is forecast to blow winds averaging 17.4 miles an hour across the peninsula. Lighter winds, at 13.6 miles an hour, were enough to set the previous record output three weeks earlier. The extra supply then cut power prices 11 percent.
“This will push the spot market lower next week,” Manuel Palomo, a Citigroup Global Markets analyst in Madrid, said about the storm. Palomo covers Spanish generators Iberdrola, Endesa and Acciona SA, which operate most of the country’s wind farms.
Spain and Germany, the world’s biggest wind-energy markets after the U.S., have changed the dynamics for wholesale power trading by forcing sellers to read weather reports. Because their fuel is free, wind turbines undercut traditional generators that burn coal, natural gas and oil.
Baratti can be reached via email to gbaratti “at” bloomberg.net.