Monday, March 23, 2015

What are the production costs leading to MW production of electricity. Add to the oil and gas consumption the COST OF THE ELECTRICITY PRODUCING PLANT.

Wind Turbines ARE the energy producing plant. When replacing a coal plant with a gas plant consider the fact the cost of production begins with the well drilling and does not end until the plant goes online with production. In that scenario is the realization Wind Power Farms cost far less to produce electricity than any other energy source, than possibly solar.

The longevity of the energy source, namely wind, is endless and costs nothing. Gas, oil and coal costs from the day it is first planned for energy production. 

The greenhouse gases produced by wind and solar are ZERO.
 
In 2013, (click here) the average annual electricity consumption for a U.S. residential utility customer was 10,908 kilowatthours (kWh), an average of 909 kWh per month. Louisiana had the highest annual consumption at 15,270 kWh, and Hawaii had the lowest at 6,176 kWh.

Kilowatt Hours (kWh) is 1000 watts. One thousand is 10^3 or 10 X 10 X 10 = 1000. There are 1000 kWh in 1 MW.

The drilling company operates (click here) in accordance with a contract which specifies that the well will be drilled to a specific depth. The contractor is paid on a per day or per foot drilling rate.

 In 2007 it cost $4 million to drill an oil well and $3.9 million to drill a natural gas well. The average cost to drill a well was $574/foot of depth. 

Drilling costs have increased as oil prices and drilling activity have risen.  In 2000, when oil prices were $26.72 /B, drilling costs were $593 thousand per oil well and $126/foot.  For 2006, when prices averaged $59.69/B, drilling costs were $2.238 million per oil well and $402/foot.

The most expensive wind energy is offshore. The construction requires floating platforms and equipment. The costs inland are far less.

These are estimated costs per offshore wind are below with an exchange rate of 1 Euro to 1.1 USA Dollar. Between 2004 and 2006 the cost to build the wind farms increased simply because the demand for them increased and the parts manufacturers hadn't anticipated such a demand. Prior to 2004, the cost of wind power per MW (Megawatt) or one million watts....

That is 10^6 or 10 X 10 X 10 X 10x 10 x 10= 1,000,000 Or the understanding 10^6 equates to six zeros. That is standard math equivalent for one million. Six zeros.

But, to clarify; prior to 2004, the cost of wind power per MW (Megawatt) or one million watts was falling in cost by 10% per year. 

This is an image of the first windmills used to produce power. This image is from 1988 on the Ohio farm of Charles F. Brush. Kindly notice what appears to be a gantry for entry to the gear house at the middle of the fins. This wind mill operated for 16 years. At the time these machines on both sides of the Atlantic Ocean were being discovered and built the average person believed electricity was the work of the devil. How hideous to think that a godly concept would light so many bulbs with the flip of a switch. Certainly, the art of making candles was more toil and god's method.
 
Investment costs, million €/MW O&M Cap. factor
Min Average Max €/MWh
2006 1.8 2.1 2.4 16 37.5
2015 1.55 1.81 2.06 13 37.5