Electricity from wind energy and other renewables is close to one-third cheaper than electricity from a new coal-fired plant, according to a US report published by the Michigan Public Service Commission (MPRS) to the state legislature.

The report found that average costs over the life cycle of renewable energy systems equalled €69.5 per megawatt-hour (MWh) while the cost for a new coal fired power plant totalled €101 per MWh.

Some strange news has emerged from the World Coal Association recently: the WCA claims that wind turbines use a large amount of coal during their production. At the European Wind Energy Association we recognise that energy is needed during the manufacturing and transport of wind turbines as well as during installation site works, but the amounts suggested by the WCA are way above the reality.

In fact, a wind turbine consumes less than 1g of coal per kilo-Watt hour of electricity produced over its full lifecycle. A coal plant, meanwhile, will consume over 300 times this amount per kWh of electricity, assuming a 40% average efficiency. Moreover, one wind turbine pays back the coal it uses during production with just one month of operation. Looking at all fossil energies used during the lifecycle of a wind turbine, the ‘fossil fuel debt’ ranges from 3-8 months of turbine operation.

Mongolia, wind turbine by Elke Zander

Mongolia has recently indicated it wants to become part of an international green energy revolution by harnessing vast amounts of wind energy for export to its power-hungry neighbour China.

Stories and blog postings last week reported that the remote land-locked country in northern Asia has indicated it would like the development of wind, solar and other renewable energies to be subsidized by the nation’s considerable mining projects.

A Wall Street Journal posting noted that Mongolian Prime Minister Sukhbaatar Batbold discussed at a special cabinet meeting in the Gobi Desert the county’s plans for massive investments “in alternative energy and to export wind power to China — enough to equal 40 million tons of coal.”

The European Commission’s move to rein in coal subsidies by suggesting that unprofitable mines be shut down within the next four years has received wide coverage this morning. The move, announced yesterday and set for formal approval in December this year, would see the closure of hard coal mines located mainly in Germany’s Ruhr region, north-west Spain and Romania’s Jiu Valley.

The announcement is a signal that the European Commission firmly believes that renewable energies, including wind power, are the path to a carbon-neutral future:

“Renewable, clean energy is the way to go,” said European Commissioner for competition Joaquín Almunia, reported by EurActiv.

Leading environment group WWF said the Commission has finally “stood up to complacent attitudes and acted in the broader European interest”. In total, subsidies to the sector hit €3.2 billion in 2008, down from €6.4 billion in 2003, the Financial Times noted in its article.

The Ecocentric blog described coal subsidies as the “dirty secret of fossil fuels.” Coal receives tax payer support “even in environmentally friendly Europe.”

But the Commission’s proposal could hit opposition from some countries in Europe that are heavily reliant on hard coal. According to the New York Times Green Blog about a month ago, Spain, Slovakia, Hungary and Romania want to keep coal subsidies while the industry also employs around 100,000 people across Europe.

Meanwhile, EWEA foresees the creation of around 250,000 new jobs in the European wind industry by 2020.

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