Not only is wind energy a great source of clean and renewable energy, it is also a means to protect consumers in Texas from terrible energy price surges. This was one of the benefits highlighted when the state’s wind generation has kept the prices of electricity down in the state. This was despite scorching heat waves that has ravaged a lot of states and regions in the country.
According to Bloomberg, spot prices, which is the cost of any service or goods in a particular time, has jumped to amazing rates. The skyrocketing prices of energy were evident in places and regions that surround Texas; the western hub has increased to $44.27 per megawatt –hour to an average of $84.83. And the figures on the eastern bug, prices are up $26.64 which is a 50% increase to $79.86 per megawatt –hour.
You would not believe what prices are in Texas. Spot prices for power fell 48 cents to hit $46.09 per megawatt-hour. This amazing rate was despite terrible heat up to 96 degrees Fahrenheit in Washington, DC.
Wind power provides about 9.9% of total electricity used in the ERCOT (Electric Reliability Council of Texas Inc.) region. And even when wind energy is also competitive as natural gas and coal, a study revealed by the American Wind Energy Association (AWEA) has showed that states that had the most capacities to provide wind energy has seen a slight drop of electricity prices from 2008 to last year. Compared to other states that do not use wind energy, the price of electricity even increased by 8%.
And aside from helping consumers save on their electricity costs, wind power is a cushion that protects consumers from the varying prices in electricity. Oftentimes, high temperatures increase electricity remands; when the temperature is hot, consumers use more energy to cool their homes while cold temperatures also increase the demand for power as consumers need to heat their homes. Texas has the biggest wind capacity compared to other states and this creates a cushion to protect its residents from terrible changing rates in electricity. ERCOT has even dealt with fewer blackouts thanks to Texas’ efficient wind generation.
Michael Goggin, analyst from AWEA has mentioned: “Wind energy reduces electricity prices and that is good for consumers.” He added: “Wind energy has no fuel costs, allowing it to replace more expensive and polluting sources of energy.”