Last month revealed truly astonishing utility Power Purchase Agreements (PPA) for new wind power in New Mexico, Minnesota, and Texas. Utilities are purchasing new wind generation for $22 to $33/Mwh. That is astonishingly low pricing and wonderful bargains for the lucky consumers!
How do these wind prices compare to the cost of a new gas plant? A new gas plant today would generate gas at a cost of about $50 to $60/Mwh.
The bargain pricing in New Mexico, Minnesota, and Texas reflects continued improvement in wind turbines that each year produce more power at lower costs per kilowatt-hour. Wind will soon provide 5% of America's power, and the continued cost declines mean that wind can provide 20% of our electricity by 2035.