Why is it that
wind energy costs keep declining while mainstream electricity generation costs continue to climb?
A September 2014 report from the independent financial advisory firm Lazard shows that
wind energy costs continue to fall to the point where wind is rapidly becoming the lowest cost option for new electricity in many parts of the United States.
A new white paper report finds that wind energy is keeping electric bills low for American homes and businesses, thanks to
plummeting wind energy costs driven by technological improvements.
In fact,
offshore wind energy costs have fallen so dramatically, simultaneous with improving technology, that even coal - heavy Poland has announced it will begin developing wind assets.
The possibility of wave energy unit costs falling to 2 - 3 pence / kWh within 3 to 5 years mentioned in the commentary is derived from experience of
onshore wind energy costs, not from experience in wave energy.
Those experts were, on average, even more optimistic
about wind energy cost reduction, expecting LCOE to decline by 27 % by 2030 and 48 % by 2050 in the median scenario, and by 57 % and 66 % in the low scenario (Figure 4).
Today,
wind energy costs 61 per cent less than it did in 2009, and costs for utility - scale solar PV systems are down 82 per cent.
With the rapid reduction of solar and
wind energy costs, the Indian grid now needs solutions for renewable integration.
With the rapid reduction of solar and
wind energy costs, Indian grid now needs solutions for renewable energy integration.
The cost comparisons for such a system should not be based on the difference between average solar or
wind energy cost and the average cost of gas generation.
The authors have not documented
their wind energy cost estimate.
In fact, the authors have conceded that they have not directly and systematically analyzed the relationship between windmill size and
wind energy cost.
The timing seems good; the EPA Clean Power Plan will make renewable energy more valuable to utilities and state officials, and
wind energy costs have grown more competitive every year.
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Wind energy costs two - thirds less than it did six years ago thanks to technology innovation and those savings are being passed onto American consumers.