LBNL report: Low natural gas prices haven’t detracted from wind’s hedge appeal
Even with recent declines in natural gas prices resulting from the expansion of shale gas production, wind power proves to be beneficial for its ability to give buyers long-term price certainty, a new report from Lawrence Berkeley National Laboratory (LBNL) finds.
Drawing on a sizable sample of long-term power purchase agreements (PPAs) between existing wind projects and utilities, the report compares wind power prices that have been contractually locked in for decades to come with a range of long-term natural gas price projections. Data from 287 PPAs totaling 23.5 gigawatts were used.
Some notable quotes from the report:
· “Adding wind power to a portfolio of generating assets will partially hedge or insulate that portfolio ...