THE BILLIONS IN TEXAS WIND

Benefits of Texas Wind Energy Estimated to Exceed $3.3 Billion Annually

Peter Kelly-Detwiler, November 10, 2014 (Forbes)

“…[T]he overall societal benefits of the wind resource [to the state of Texas] add up to about $3.3 billion annually. The gross annual savings to consumers are estimated at $1.2 billion…The valuation is comprised of…1) A reduction in the price of energy to Texas residents, since wind displaces more expensive resources on the margin, valued at $973 million…2) A cut in sulfur dioxide (SO2) pollution, with an assigned cost of $652 million…3) A reduction in nitrogen oxide pollution, valued at $71 million…4) Minimized carbon dioxide emissions, to the tune of $1,008 million…5) Hedges against fuel price volatilities, valued at almost $61 million…6) Savings against expected increases in other fuel prices, estimated at over $491 million…

“…[Prices are valued] in three distinct areas: a reduction in overall power prices; a hedge against price volatility; and savings against future expected price increases…Analysts can disagree on the specific valuations regarding costs to society for various avoided pollutants. But there’s general agreement among the scientific community concerning the negative impacts…The carbon dioxide cost number used in the analysis is the mid-range estimate from the U.S. government’s Social Cost of Carbon working group, while the sulfur dioxide and nitrogen oxide cost numbers are the median values contained in a peer-reviewed journal article by Harvard School of Public Health researchers…[I]t appears fairly clear: the economic value of wind resources to Texas is considerable…” click here for more

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