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View Diary: Response to Buffet's Investment in Wind Power (82 comments)

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  •  warren buffet says otherwisr (1+ / 0-)
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    http://reneweconomy.com.au/...

    Recent contracts for wind energy in Texas have been written as cheaply as $25/MWh. Granted, that includes a tax credit, but it still represents wind energy at a levellised cost well below $50/MWh. This is similar to prices struck in Brazil, where 2.3GW was recently allocated at an average price of $47/MWh. The prices undercut coal and gas fired generation by such a margin that Brazillian authorities had to create a separate auction mechanism for those fuels, although there is no doubt whether they will bother.

    Wind energy may have been around for several decades, but it is still enjoying significant cost decreases. Bloomberg estimates turbine prices have fallen 26 per cent in the last two years, and new structures and mechanisms, not to mention the interest of Buffett and other mainstream investors, are bringing down financing costs as well.

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