Wind Farm Costs Too Much: Wind Energy: Eco20/20

Wind Farm Costs Too Much

T. Boone Pickens has called off his massive wind farm project. As he put it, he didn't realize how many problems he would have with transmission. Instead, he will build smaller farms located throughout the Midwest.

Why did he fail?

The renewable energy phase is really in its infancy. People are bound to experience to failures and successes. Regardless of how much Mr. Pickens is worth, one thing always remains the same, the need for Money! Big innovative projects require large amounts of money. While he had invested billions in the project, he also saw very little investment from others. Another reason the plan failed is that natural gas powered cars are nowhere near being competitive with electric.

Another part to consider is something that no one in the renewable field wants to admit. The renewable energy market is directly hinged on the non renewable energy field. As an example, one needs to look no further than T. Boone Pickens. His net worth dropped two billion when the price of oil fell drastically. This fall had a direct affect on his wind plans for Texas. Another example can be found in the faltering car industry. The higher the prices, the more people wanted smaller and more efficient cars. However, once prices went down, so did the demand for smaller cars.

What is next for renewable energy?

Renewable energy will have many more advances and set backs in the upcoming years. While the market may be connected with non renewable energy, the two markets will continue to forge in different directions. Look for the building and growth of the smart grid to have a big impact on larger and more successful wind and solar projects.