WIND ENERGY AS AN EXPORT COMMODITY: THE CASE OF SOUTH DAKOTA

Abstract

Wind energy has grown in popularity and concomitantly so has the installation of wind turbines. As both alternative and green sources of energy, many may assume that wind energy is replacing fossil fuels such petroleum and natural gas and leading us to a more sustainable future. While renewable energy is part of the sustainability equation, another common attribute of achieving sustainability is the localization of production and consumption. In many ways, this almost automatically occurs with wind turbines because electricity does not transport well over long distances. However, despite this characteristic of electricity, it does not mean that electricity cannot be exported, especially when political geographies are considered. Indeed, this research will examine the U.S. state of South Dakota to demonstrate that wind-generated electricity can be treated from an economic point of view as an export commodity despite any local benefits that it generates. By examining statistics for electricity generation, it will be seen that wind energy is doing much more than replacing local electricity generation by fossil fuels. Further examination will show that a significant amount of wind-generated electricity in South Dakota is exported outside the state.