Why wind energy faces economical throttle

Wind does a better job than removing carbon from the grid. This, according to a recent master’s degree in mechanical engineering, claims that economics stolen papers claim wind turbines could be victims of their success.

Initially looking to study biomedical engineering, Faith Nobert was fascinated by sustainability after taking thermodynamic classes with Professor Tim Weiss. She became a research assistant for Weiss’ group, recognizing the importance of reducing emissions for a healthier future.

“As engineers, we are often taught to aim for the highest efficiency or output,” explains Weiss.

Nobert’s work stood out as it combined engineering and economics led by both energy and environmental economists Weiss and Andrew Leach. As Weis points out, this interdisciplinary approach is attracting more students. This paper has been published in Wind.

The St. Albert native focused on the changes in the electricity market in Alberta, particularly after industrial carbon prices abolished coal by June 2024. She wanted to quantify how displaced the wind energy actually is.

The electricity market in Alberta is auctioned. Generators offer power at various prices, with the lowest price option being used first. Wind energy has its advantages, with bids of $0 per megawatt hour being prioritized on the grid. However, like all generators, wind farms are always paid for the most expensive power source they need to meet their demand.

When more wind and solar power comes online, more prices are offered and electricity prices tend to fall. At very windy times, producers may be paid little or nothing. This dilemma sparked Nobert’s research. “If the emission reduction system requires more winds, and we are looking for a net zero in Alberta in the future, how can we continue to pay for these generators?”

Carbon pricing is useful now. Wind power generation does not generate emissions, so you basically earn carbon credits, a payment to prevent carbon pollution. Nobert’s study reveals that wind energy credibility could be worth up to 57% more than current calculations suggest.

But she found a paradox. This highly incentive system can ultimately undermine itself. As more wind energy enters the grid and less emissions, fewer carbon travels. Even though Alberta’s carbon prices are projected to almost triple over the next five years, this financial support mechanism could ironically weaken.

“The intrinsic value of the offset type cannibalize itself as more wind energy enters the market,” says Nobert. “Offsets are brought in to support wind energy, but if its value decreases, it poses some challenges to continued support for wind energy.”

Nobert’s research is not just a question. We provide a solution. She uses battery storage to save wind power due to peak demand, build more transmission lines to sell excess wind power to other regions, and upgrade existing turbines to make it more flexible in the market.

“This is a key issue as Alberta aims for a net-zero future with even more renewable energy on the grid,” she emphasizes.

Nobert is also accepted by medical school and introduces her truly interdisciplinary approach. As Weis says, “Engineering from engineering to business. She will be one of our most balanced students.”