A wind power project is set to begin in my city. The city got a $600K grant from the state (MA) for it.
*It was planned at 400 feet; however, our city's entire airspace is an entry point to Logan International Airport and so the FAA shot down the idea, giving a maximum of 254 feet at the proposed location. The 400 feet turbine would have produced more power at a somewhat smaller cost (about 4% less) per kW than the 250 turbine. The margin is somewhat slim because of this. Even with this, without the $600K grant the estimated NPV (net present value) was calculated as slightly negative. That's not even counting the cost of the loan from the government ("Certified Renewable Energy Bonds") for this, which is 0%!!!
*Surrounding towns to the north and east have much stronger wind currents because their beaches are exposed more fully to the ocean (whereas we are less exposed due to an obstructing island and an unlucky wind direction), and it is estimated that they have many spots with 50-70% more wind than any place in our city. Plus, they don't have to worry as much about FAA restrictions. However, they are much more affluent and they do not have a pre-existing apparatus that could have initiated the project. (in our city's case, it was the large water treatment facility)
So you see, this is not a market-oriented solution. Sure, it has a greater than 50% chance of being profitable for the city (but not the state), and the proposed site sits very close to several large industrial buildings, thus reducing the inefficiency caused by energy transmission loss. However:
* The project is heavily subsidized via interest-free bonds and the ~$600K grant.
* No one really knows how this will affect the seagulls and the geese that currently sometimes fly over the site in transit between various forested areas and fields somewhat near the site. There would be potential view or even (though improbable) noise concerns.
* There is a power line relocation project which will create potentially many businesses or upscale condos south of the project site.
* It could have been built somewhere else--in another city with more wind power-- where there is more wind power, but the reality of how these projects are hatched and funded intervened.
* And of course, the biggie: if the winds aren't flowing "just right" the power generation could fall considerably.
Linqs:
http://www.masstech.org/project_detail.cfm?ProjSeq=50
http://www.masstech.org/Project%20De...lity_Study.pdf