http://www.redherring.com/Article.aspx?a=16623&hed=An+iPod+for+Wind+Power%3fVenture capitalists have found it difficult to make investments in wind power. That’s frustrating, because VCs are anxious to put money into clean energy, and wind power is gaining speed. But so far most wind power consists of large-scale wind farms that produce electricity for utilities.
New technology could change that. Earlier this month, Southwest Windpower (SWWP) raised $8 million to launch a small generator that could bring wind power to individual homes and businesses. “It will unlock an extraordinary market, here and abroad,” says Hap Ellis, a general partner at RockPort Capital Partners, which led the round.
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SWWP’s technology targets a new market for wind—any building on at least half an acre in a wind-rich location. While SWWP already makes small wind turbines for “off-grid” customers—that is, customers that are too isolated to be connected to the electric grid—it has only sold some 95,000 in the last seven years, says CEO Frank Greco.
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SWWP’s new turbine is much easier to use. It includes all the inverters, controllers, and other parts needed to connect to the grid. They are all contained within the body of the generator, lowering the production and installation costs, says Mr. Greco, who expects a retail price of around $5,500. At that price, the average cost per kilowatt hour would be $0.08—not including subsidies available in many states, he says. That means wind can beat the cost of regular electricity, which in the U.S.
averages $0.09 per kilowatt hour, he says. The turbine also produces electricity at lower wind speeds and the blades top out at only 300 rotations per minute to reduce noise, he says.
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