THE BIGGER BENEFITS OF OFFSHORE WIND
Study: Cape Wind Will Reduce Regional Electricity Prices by $7.2 Billion
March 31, 2012 (Cape Wind)
"Cape Wind will reduce wholesale electric prices for the New England region by $7.2 billion over 25 years, according to…Charles River Associates, a leading economic consulting firm…
"…[Update to the Analysis of the Impact of Cape Wind on Lowering New England Energy Prices] shows that ISO New England, the electric grid operator, first dispatches electric generating units with the lowest cost fuel. Since Cape Wind’s fuel – wind – is zero cost…Cape Wind will displace higher priced and polluting fossil fueled units resulting in average savings of $286 Million per year in New England…"
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"…The original report was published in February, 2010…The increase in price suppression in the report update was attributed primarily to an increase in power plant retirements and a larger price difference between natural gas and fuel oil.
"Price suppression in wholesale electric markets occurring as a result of wind power projects has been documented in Europe and in several U.S. power markets. Price suppression from wind power was noted in [a 2009 New England Governors repot], which stated…[that] the wind resource potential could provide downward pressure on the marginal prices for energy within the New England electricity market…[and] benefit New England consumers…"