After my previous arguments concerning the cost of nuclear power versus how much Dalton McGuinty is promising to pay the Korean consortium per kWh, I decided to do a little bit of my own analysis on how much wind power costs per kWh and came to a relatively surprising result which leads to some very disturbing questions.
It is estimated by wind energy proponents that, per MW of installed capacity, the cost for constructing and installing a wind turbine is $1-2 million per MW. Lets assume the upper limit and calculate the cost per kWh for a 50 MW turbine.
Like nuclear power plants, most of the cost is built into the initial construction. A 50 MW wind turbine costs roughly $100 million to build and install. Assume the life expectancy of the turbine is about 20 years. That means that the cost is about $5 million / year. Lets add an additional $2.5 million / year for maintenance, repairs and other costs.
Just as before, the calculation for the number of kWh is straightforward. Assuming a capacity factor of 30% then the wind turbine will generate 153 million kWh each year.
Using these numbers, the costs are $0.049 / kWh. Which is, a lot lower than the $0.135 / kWh that the Ontario government promised the Koreans for their electricity.
Either one of two things must have happened in order to account for this massive discrepancy. Either the cost of wind power is much higher than wind advocates are letting on, or the Ontario government has been duped into paying the Koreans over twice what the electricity should be worth. Which do you think is more likely?