Building and operating new wind energy can cost less than continuing to operate fully-depreciated conventional generation facilities
Wind energy has solidified its position as the most cost-effective source of new electricity generation, coming in now at less than one-third the price seen in 2009. The full “levelized cost” (LCOE)* for a megawatt-hour of onshore, utility-scale wind energy in the United States is now between US$29 and $56 on an unsubsidized basis, according to an authoritative analysis just released by U.S. investment firm Lazard.
Wind energy costs have dropped 69 per cent since 2009, and seven per cent just in the last year. In comparison, the key conventional energy sources of coal plants, natural gas combined cycle plants, and natural gas peaker plants have seen much more modest declines in the same period, while the LCOE of nuclear has actually increased.
Remarkably, the low-end of the wind energy cost range also falls within the range of operating costs alone for existing nuclear and coal generation. In other words, it can be less expensive to build and operate new wind generation than to continue to operate fully-depreciated conventional generation facilities. MORE