BP Speak About Why Wind Power Is Going To Boom

Despite of the current economic recession, wind power has all the reasons to boom because of improved technology, increasing demand and cheaper cost, BP's Alternative Energy business developer Nicholas Hiza said during the Wharton Energy Conference last week.

Hiza said technology has increased the amount of electricity each wind turbine generates by 21 times in the last two decades. As a result, fewer wind turbines are needed in order to generate the same amount of electricity. Generous spacing up to 1,000 feet between two turbines can be achieved now, while years ago cluttered wind turbines created a problem for blocking migration route for birds.

Technology also reduced the noise level of wind turbines down to 40-50db, quieter than the humming from a refrigerator. "If you have a chance, drive your car to a wind farm and wind down your window and listen, then you will understand how quiet it is," Hiza said.

Increasing demand for energy has driven up the appetite for investment in wind farms, too. Energy Information Administration (EIA) projected the amount of electricity generated from wind would reach seven gigawatts. The actual amount produced that year amounted to 20 gigawatts, almost three times of EIA’s projection.

Currently, only 1.1% of the US electricity is generated from wind power. That leaves an ample room for the industry to grow as the government aims to produce 20% electricity by wind in the next few years.

Another advantage for wind is the low cost to produce power after the wind plant is built. Each kilowatt of electricity generated by wind costs 40 cents, the most affordable power, Hiza said.
Despite all the great prospect that wind power boasts, Mr. Hiza failed to mention, purposefully or not, the high cost to build these wind farms is in fact an obstacle.

Hiza admitted during a conversation after his speech that there are an increasing number of landowners who require a much higher royalty fee for installing wind turbines on their lands. “I think it is fair,” Hiza said. But he didn’t want to delve into the question how the new problem has affected wind power business. Maybe in a tight economy like this, the business is after all less rosy than he claimed?

3M Joins Wind Power Business

3M, a major US adhesive company, may not seem like a logical fit for wind power business. But recently it announced its new line of product, Wind Tape, that would extend the life of wind turbine blades.

The new product line, which was developed by the company's new Renewable Energy Department, puts 3M in the middle of the battle of reducing world's greenhouse gas emission.

Wind Tape is designed to protect the edge of the huge wind turbine blades. Those blades, spin at 180 miles an hour, are usually damaged in about two years after generating electricity, from the erosion of the wind.

3M's Wind Tape comes in 8-inch wide and 54-foot long. Each roll costs at least $288. But comparing to the turbines that cost $100,000 each, the tape will be the money well spent.

According to 3M's website, the tape will extend the life span of a turbine by seven to ten years.

Finance and Commerce reported: "U.S. wind turbine components and systems would be worth $60.9 billion in 2013 – more than five times the 2008 market value of $11.2 billion.

3M wants to be part of the aggressive growth forecast contained in BCC’s report, which equates to a compound annual growth rate of 40 percent."

But one concern raised from the brilliant new product line is the customer service. Since 3M has been a materials firm all along, the new Wind Tape business will force the company to beef up its after sale service pretty quickly.