October 20, 2008

Local wind power cuts peak costs

Put up a wind turbine and you not only generate some of your own electricity but you cut down on the peak demand charges for the electricity you do get from your utility.

A study of a 1.65-megawatt wind turbine set up at the University of Minnesota at Morris found that 10 percent of the financial advantage of the turbine was in avoiding peak demand charges from the utility. Utilities charge more for electricity used during times of peak demand.

Savings could be higher for other installations. Peak demand charges from the utility in the study were 63 percent of the industry average.

Research paper:
Avoided Demand Charges and behind-the-Meter Wind: Insights from an Application at the University of Minnesota
Wind Energy, published online October 16, 2008

Researcher's homepage:
Arne Kildegaard

Back to ERN October 20/27, 2008



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