Wind energy costs are lower than ever, with steady advances in technology and better wind turbine performance, according to three new reports released by the U.S. Department of Energy (DOE). New DOE reports include the “2016 Wind Technologies Market Report,” the “2016 Offshore Wind Technologies Market Report,” and the “2016 Distributed Wind Market Report.”
“The Department of Energy’s research shows that wind power is a bright spot on the American energy landscape,” said Tom Kiernan, CEO of the American Wind Energy Association (AWEA). “U.S. wind projects are already among the most productive in the world, and this new data proves we have even greater potential to deliver affordable, reliable and clean electricity to the American people.”
Wind energy has reached historically low prices according to DOE. Average prices for wind energy power purchase agreements (PPAs) fell to roughly $20/megawatt hour (MWh) last year, with some of the lowest prices in heartland states like Texas, Oklahoma and Iowa. DOE’s data showing that the average PPA price for wind has fallen by two-thirds since 2009 confirm other data showing a two-thirds decline in the levelized cost of energy (LCOE) from wind.
The two primary factors driving down the cost of wind energy are reduced wind plant costs and higher productivity. DOE data show that it costs 33 percent less, on average, to install a new wind project today compared to the peak reported in 2009 and 2010. This is a remarkable achievement, as cost reductions have been achieved while adopting longer turbine blades, using advanced materials, and making other improvements that would ordinarily tend to increase costs.
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