Where Is Wind Energy Cheaper than Natural Gas?

October 18, 2013 | 1:10 pm
Mike Jacobs
Senior Energy Analyst

Answer: The gas-rich states of Oklahoma, Texas, and Colorado. This week, utility Public Service Co. of Oklahoma announced that it tripled its planned purchase of 200 MW of wind energy, to 600 MW, because of the immediate savings to its customers and the 20-year guaranteed stable pricing.

credit; L. Davis Roper

credit: L. Davis Roper

Two weeks ago, the consumer-owned cooperative utility Tri-State increased its purchases from a wind farm in northeast Colorado. In September, Austin Energy in Texas made a $1.4 billion commitment to add more wind to its supply, also at a fixed price.

But wait, there’s more. For states that have long been energy importers, wind purchases are showing up as bargains as well. Alabama and Georgia are buying wind energy from Oklahoma and Kansas, and New England states just announced wind that is cheaper than conventional, gas-fired alternatives.

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Mike Jacobs is leading the Union of Concerned Scientists’s work on electricity markets and regulatory reform. He develops proposals in an effort to shape federal, regional and state electricity markets, regulation and policies to encourage the expansion of renewable energy resources and the reduction of coal-fired generation.