As requested by Acciona and EDP Renováveis, Ernst & Young conducted a study that presents an integrated analysis of the value creation potential of wind energy.
The study compares two energy technologies, Combined Cycle Gas Turbines (CCGT) and wind power, to analyze the impacts of microeconomic factors such as direct costs as well as macroeconomic factors including job creation, Gross Domestic Product contribution, energy security, grid integration costs, CO2 and the impact of wind power on electricity pool prices.
The primary findings of the study include the following:
- Each MWh of wind energy provides a higher contribution to GDP in most European countries than other generation technologies, thus generating more economic benefits for the domestic economy.
- In the European Union, for every million euros invested in wind energy, 21 job positions are created
- Wind energy has a higher impact on tax revenues than other technologies. Each euro spent on electricity from wind generates between €27 and €52 cts of tax revenues depending on local policies
In addition, wind energy creates a positive effect on the wholesale market by lowering the electricity spot prices which in turn, compensates for the premium tariff received. The study concludes that in Spain in 2010, the premiums received by the sector happened to be lower than the savings in electricity prices.
The relationship between the value creation potential and the real cost of wind energy is not always well understood. Thus, this report aims to communicate the positive impact of wind energy in comparison to other electricity.