Many factors play into the assessment of cost of energy from wind systems. The assumed cost of diesel fuel and the potential level of wind penetration are key parameters that must be considered. The higher the penetration, the more the potential fuel savings, but it is not until diesel engines are shut off, or until a shift to smaller and/or more efficient diesels, is made, will large fuel reductions be possible. Nonetheless, in operating low to medium penetration systems in Alaska, fuel savings as high as 25% have been recorded, and higher fuel savings are technically feasible. The potential of these fuel reductions resulting in a lower delivered cost of energy to the consumer will depend greatly on the cost of the diesel fuel, the capital costs of the project, and more specifically on how much of that cost must be borne by the consumer.
Wind Potential Reduction in Cost of Energy
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