Massachusetts wind power could lower electricity rates
Probably the biggest concern about renewable electricity among most people is that this new technology will push up electricity rates. But a new study from Charles River Associates reports that the major Cape Wind power plant in Massachusetts should actually lower electricity rates over the course of the coming decades.
The massive wind farm is expected to produce around 454 megawatts of green energy at peak capacity, but the project has drawn criticism for its high initial costs. The CRA study, though, suggests that over the next 25 years, the project will actually save around $7.2 billion because its fuel is free, which should push out higher-priced fossil fuels.
While the costs are heavily front-loaded, on average the project will save around $286 million each year.
"This report makes it clear that Cape Wind will save electric consumers billions of dollars through price suppression while also creating jobs and helping promote cleaner air and greater energy independence," Mark Rodgers, Cape Wind communications director, said in a statement.
While current electricity rates are unusually low because of the drop in natural gas prices, fossil fuels are likely to go back up in the future, while Cape Wind's power will continue to rely on free fuel.