Does wind power provide cheap electricity?
No. The Royal Academy of Engineering has estimated that wind power is an expensive way of generating electricity, significantly more so (per unit) than coal and gas.
In addition, wind power stations receive huge indirect subsidies which have already resulted in an increase in the price of electricity for all customers.
As Prof. David Simpson puts it, "At the present time the cost of generating electricity from wind power is approximately twice that of the cheapest alternative conventional source. By 2010 the cost of subsidising wind and other renewable forms of energy is officially expected to be about £1 billion every year."
The Office of Gas and Electricity Markets (Ofgem) is the regulator for Britain’s gas and electricity industries. Its role is to "promote choice and value for all customers." It also administers the current Renewables Obligations scheme. A recent Ofgem publication stated "The existing RO scheme is forecast to cost customers £32bn over the life of the scheme." "The subsidy generates returns for investors that are greatly in excess of the economic cost of generation it helps to finance."
Web link 2: 'Reform of the Renewables Obligation 2006: Ofgem’s response' (PDF opens in current window)