. According to the American Wind Energy Association, (AWEA), wind power reduces energy costs through market competition. This contradicts Exelon’s claims that it is the largest owner of nuclear power in America and the merchant fossil plant. Exelon, which has been aggressively opposed bipartisan support of wind energy in America, claimed that the Renewable Production Tax Credit often causes negative electricity prices at nuclear power plants. Michael Goggin (study author, Senior Electric Industry Analyst at AWEA) stated that the evidence supports a completely different conclusion. Facts About Wind Energy’s Impact on Electricity Markets. Goggin clarified that Exelon’s campaign incorrectly combines wind energy’s consumer benefits with an individual issue called negative pricing. Grid operator data shows that Exelon overestimated the frequency of negative price at its nuclear power plants by a factor 20.. Exelon’s nuclear power stations were responsible for most of the cases, not wind. Goggin said that grid upgrades, which are urgently needed, have been gradually eliminating negative prices. The US’ 2013, wind energy has displaced more expensive forms of energy. In fact, it accounted for 4% of its national power grid. Goggin stated that wind energy has a positive impact on the markets by replacing more costly forms of energy. This market-driven impact, widely seen to be beneficial for any low-fuel-cost energy source, even nuclear, has a positive effect on markets. Exelon actually referred to this benefit as a “benefit” when it happens at its nuclear power plants. According to Grid Operator data Exelon repeatedly exaggerated the frequency of negative electricity prices at its atomic power plants by between ten and twenty factors. Exelon’s nuclear power plants were responsible for many negative price events. The rice output of Exelon nuclear plants was very low in most instances of negative price. Exelon’s nucleus plants are unable to decrease output when there is low demand (or localized transmission problems). Negative prices are being eliminated across the nation by transmission upgrades. PTC (Production Tax Credit), is rarely included in the electricity market price received by other power plant. Wind energy would need to establish the clearing price to allow the PTC to reflect in the negative electricity market pricing. This is unlikely to happen because wind energy has no fuel cost and marginal operating costs that are lower than other fuel resources. No matter whether or not a wind power plant is awarded the PTC it doesn’t set market prices as it has the lowest operating costs. Exelon is not the only threat. The economics of nuclear generation and low electricity demand are what really matter. Exelon, as well as other experts from the utility sector, has stated that the biggest challenges facing the industry are falling natural gas prices, flat electricity demand, and declining natural gas prices. Video: Wind Energy Using the energy from moving air to generate electricity is called wind energy.
