Prime Time on the cost of wind
This post was written by Richard Tol
The video is now online.
Minister Ryan argues that the price of electricity falls as more wind power is added. This is true. The price reflects the marginal cost of power generation, which is zero for wind. However, what matters is the total cost of power generation, which may well increase as more wind is added to the system. From the household perspective, the price of electricity goes down with more wind, but the standing charge goes up.
Minister Ryan again extols the virtues of import substitution, despite much evidence to the contrary.