Wind Power Is Cheap – Until the System Needs More Than Wind

While wind power on land appears economically attractive at the investor level, a closer look at the broader energy system reveals a more complex picture. Recent analyses, particularly those examining the experiences of Texas and Germany, suggest that the true cost of integrating large amounts of intermittent renewables like wind and solar into the grid is substantially higher than initial investment figures indicate. This is because the system must compensate for the inherent unreliability of these sources, leading to a dramatic increase in the price per kilowatt-hour when they form the bulk of the energy supply. In contrast, nuclear power, though initially more expensive per unit, shows a much smaller cost increase when factored into the overall system. For Norway, which still relies significantly on fossil fuels for a portion of its energy consumption, the question of transitioning to cleaner sources is paramount. However, simply following the investor-centric 'napkin calculation' for wind power might be shortsighted. The societal cost of ensuring a stable energy supply when wind is not blowing could far outweigh the perceived savings. This perspective challenges the prevailing narrative that solely focuses on the low upfront costs of renewables, urging a more holistic view of energy system economics.

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Investors look at the cost of each individual power plant. Society must also look at the cost of the entire power system.