The U.S. Department of Energy (DOE) released a report that found the price of wind energy is at an all-time low averaging under 2.5 cents per kWh.
“Wind Technologies Market Report,” prepared by Lawrence Berkeley National Laboratory, found wind to be a credible source of new electricity generation, with the decline in prices improving its economic competitiveness.
“Wind energy prices, particularly in central U.S., have hit new lows with utilities selecting wind as the low cost option,” said Berkeley Lab’s senior scientist Ryan Wiser. “Moreover, enabled by technology advancements, wind projects are economically viable in a growing number of locations throughout the U.S.”
Wind power capacity additions rebounded in 2014 with $8.3 billion invested in 4.9 GW of new capacity additions. Since 2007, wind power has comprised 33 percent of new U.S. electric capacity additions. It currently meets almost five percent of the nation’s electricity demand and represents more than 12 percent of total electricity generation in nine states and more than 20 percent in three states.
Low wind turbine pricing continues to push down installed project costs. The prices have fallen to 40 percent from their highs in 2008. These declines are pushing project-level costs down. Wind projects built in 2014 had an average installed cost of $1710/kW, which was down almost $600/kW from the peaks in 2009 and 2010.
“2014 marked the beginning of a wave of continued growth in the wind sector, with significant new wind build expected in the near term, impacting construction professionals involved with these new additions,” said Wiser.
The continued decline in prices, along with a bit of a rebound in wholesale power prices, put wind below the bottom of the range of nationwide wholesale power prices in 2014. The low prices have driven demand for wind energy, from not only traditional electric facilities, but also from commercial customers.
To view the report, click here.
