The Real Reason High Oil Prices Are Good For Wind Energy

There are multiple production methods of electricity and the retail price of electricity rises when the most expensive method of production costs rises. Simply put, when oil prices rise, the cost of producing electricity with oil rises. Wind energy production costs stay the same, the fuel is free, but we can then charge more for our electricity, thereby raising our margins. Rarely, if ever, does the retail price of electricity drop. Once the price rises, it stays up.

G. Grant Lowrance
President
Parrilla Energy

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