One advantage of wind energy production is that it allows energy producers and consumers to reduce risk. Wind energy creates no air pollution. Consider a hypothetical situation where a utility faces an investment choice between a coal-fired plant and a wind power plant. This would lead to an increase of 1.5 cents per kWh for the coal plant to produce electricity. Under these circumstances, costs would not increase at the wind plant, making it the better investment.
Utilities can invest in low cost, non- polluting resources like wind power.
In the past, cost increases due to stricter regulatory standards were passed directly on to consumers, who were captive customers with no choice of supplier. With utility restructuring and increased competition, however, utilities may choose to manage this type of future risk by reducing their reliance on greenhouse-gas emitting sources and investing in low cost, nonpolluting resources like wind power. Similar to environmental regulations, fuel prices have the potential to upset electricity markets. The oil shocks of the 1970s and early 1980s left lasting memories of utilities' and energy users' dependence on fossil fuels. Unfortunately, it is difficult to predict future oil and gas prices.