September 29, 2002
The Editor
Lethbridge Herald
Murray Smith, Alberta's Minister of Energy, notes (Wind power part of policy,
September 29) "This leaves the risks of building new generation in the hands of
investors, not consumers. Investors, including those interested in renewable
energy, are responding and confidence in Alberta can be seen in the number and
value of new projects announced and recently built. …. Government financial
support or subsidies for power projects is not appropriate in a competitive
market."
A message for investors in electrical power projects is implicit. Investors
beware.
The average electricity output from wind turbines is very low relative to their
rated capacity as they are subject to the vagaries of the wind. They thus tend
to be quite expensive per unit of electrical output. Investors should consider
very carefully the income stream from investment of their capital in any power
project. Remember the excess confidence in Enron, WorldCom, Nortel, Telus, and
other companies riding the bow wave of promise from some other new technologies.
Yours truly,
Duane Pendergast