Cheap Wind

CheapWind

Wind energy was expensive several years ago. But its cost has fallen so sharply that its cost is now competitive with natural gas, even without subsidy [LCOE]. The graph above shows that the price being paid for electricity from wind is now below that for fossil fuels in our part of the country, the difference in price being about equal to the subsidy. It appears that wind is cheap with subsidy and competitive without subsidy.

Sources

[Fossil Fuels] PUCO, Apples to Apples Chart Archive, accessed 30 May 2016.

[LCOE] Energy Information Administration, Annual Energy Outlook, 2015; Lazard’s Levelized Cost of Energy Analysis – Version 9.0, November 2015

[Wind (Great Lakes Region)] Ryan H. Wiser, and Mark Bolinger, 2014 Wind Technologies Market Report, LBNL-188167, august 2015

[Wind (MI)] Sally A. Talberg, et al., Report On The Implementation Of The P.A. 295 Renewable Energy Standard And The Cost-Effectiveness Of The Energy Standards, Michigan Public Service Commission, February 12, 2016

[Wind (OH)] Sandy Buchanan, An Ohio Wind Farm Proves the Case for a Wise Renewable-energy Policy, IEEFA, April 30 2015

 

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One thought on “Cheap Wind

  1. Pingback: Reality vs. Theory in RPS Costing | alanpeg

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