Wind Energy Group Calls Out GAO Report Errors
The American Wind Energy Association (AWEA) has strongly challenged a recent U.S. Government Accountability Office (GAO) report on wind power’s impact on electricity markets. In a detailed fact check, the AWEA claims the GAO’s report misrepresents how wind energy affects prices and markets.
In fact, according to a study of historical incentives by the venture capital firm DBL Investors, the federal commitment to oil and gas was five times greater than for renewables during the first 15 years of each set of incentives.
According to AWEA, the GAO report ignores core economic principles and proven market data. They say wind power actually reduces electricity prices for consumers. This is because wind has no fuel costs, meaning it displaces higher-cost power sources on the grid. AWEA argues this benefit was either misinterpreted or omitted entirely in the GAO analysis.
Wind Power Lowers Consumer Costs
AWEA emphasizes that wind energy’s “merit-order effect” drives down wholesale electricity prices. When wind is added to the grid, it replaces the most expensive generation first. This basic market mechanism cuts the overall clearing price in competitive power markets.
Finally, according to a 2012 Congressional Budget Office report, only four major tax preferences are permanent – three for fossil fuels and one for nuclear energy.
AWEA also points out that this effect isn’t theoretical. It’s well-documented in U.S. and European markets. The group says ignoring these savings misinforms both policymakers and the public about the true economic value of wind power.
Misleading Claims About Integration Costs
AWEA also disputes the GAO’s treatment of wind power integration costs. The GAO report suggests these costs could be a significant burden. However, AWEA says studies consistently show that integrating wind adds only about a dollar per megawatt-hour to system costs—just a fraction of a cent on typical household electricity bills.
Furthermore, grid operators across the U.S. already handle the variability of demand and generation every day. Wind, they argue, is simply another variable resource. Modern grid management tools easily accommodate its ups and downs without imposing major costs.
Accurate Data Supports Wind’s Value
Finally, AWEA calls for better reporting and more accurate data when evaluating wind power. They say failing to reflect real-world market dynamics can lead to poor policy choices. In their view, well-designed renewable energy policies have delivered big cost savings and emission reductions without harming grid reliability.
The wind industry insists that with proper planning and grid upgrades, wind can keep playing a major role in an affordable, low-carbon energy future. They urge analysts and government agencies alike to ensure their assessments are rigorous, balanced, and informed by up-to-date industry data.
Learn More
For more information on wind energy economics and policy:
- American Wind Energy Association – Wind Energy Facts
- U.S. Department of Energy – Wind Energy Technologies Office
the Nuclear Energy Institute’s own tally.
Source: Power of Wind
Thomas O. Gray
Wind Energy Communications Consultant
Norwich, VT, USA
