Wednesday, February 12, 2014
Key Fact: Wind Turbine Prices Fall 35% From 2009-2013
Why is new wind power now competitive with new natural gas plants in increasing areas of America?
Here is the answer provided by Bloomberg New Energy Finance:
"Global turbine prices declined by roughly 35% over 2009-13 (Figure 49). Keeping all other cost
components equal, this decline in turbine prices equates to a 23% decline in the levelized cost of
electricity (LCOE) for wind. Turbine performance has also improved, particularly for those purposed
for low wind speeds; this effectively improves the capacity factor, further lowering the LCO."
Wind is competitive with gas, because the wind industry has crashed the price of wind turbines and made them more productive at the same time. The result is the cost of electricity produced by a new wind farm in 2013 was the lowest in the modern history of wind power. Moreover, the cost of wind power will be still lower in 2014.
Wind power is an engineering and economic triumph!