U.S. Renewable Electricity: How Does Wind Generation Impact Competitive Power Markets?

Congressional Research Service

[From Description] …According to the Energy Information Administration (EIA), wind power provided approximately 3% of total U.S. electricity generation in 2011. Two primary policies provide market and financial incentives that support the wind industry and have contributed to U.S. wind power growth: (1) production tax credit (PTC)—a federal tax incentive of 2.2 cents for each kilowatt-hour (kWh) of electricity produced by a qualified wind project (set to expire for new projects at the end of 2012), and (2) renewable portfolio standards (RPS)—state-level policies that encourage renewable power…

The concentration of wind power projects within competitive power markets managed by regional transmission operators (RTOs), the focus of this report, has resulted in several concerns expressed by power generators and other market participants. Three specific concerns explored in this report include: (1) How might wind power affect wholesale market clearing prices? (2) Does wind power contribute to negative wholesale power price events? and (3) Does wind power impact electric system reliability? These concerns might be considered during congressional debate about the future of wind PTC incentives…


One thought on “U.S. Renewable Electricity: How Does Wind Generation Impact Competitive Power Markets?

  1. 3% in not bad at all now a days wind generator and solar panel helps many people to save electricity.In Finland there are many of people use to switch on using solar panel and wind turbine specially those house who have a good location on installing it.But we all know that having those stuff are really expensive.

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