August 27, 2018 Read More →

DOE: Average U.S. wind prices now at $20/MWh

Greentech Media:

The middle of the United States continues driving wind prices lower. Cheap projects located in the country’s windy center have drawn the national average down to $20 per megawatt-hour, according to a new report from the Department of Energy’s Office of Energy Efficiency and Renewable Energy.

The report calculates a decline in average wind prices from about $70 per megawatt-hour in 2009, to $20 per megawatt-hour in 2017 — a $50 decline in an eight-year period.

While the drop was less pronounced in the U.S.’ most resource-rich wind zone — the prices in the middle of the country fell from $55 per megawatt-hour to a bit below $20 per megawatt-hour in that same time — the overall price declines are drastic.

Bigger turbines have enhanced wind project performance, while lower turbine pricing continues to push down installed project costs. The average installed cost of wind projects in 2017 was $1,610 per kilowatt, down $795 per kilowatt from the peak in 2009, according to the DOE report. 

But comparatively tough times are ahead. Analysts call the federal Production Tax Credit a “core motivator for wind power deployment,” and the credit will phase down through 2024.

“At the same time,” the DOE report notes, “the potential for continued technological advancements and cost reductions enhance the prospects for longer-term growth, as does burgeoning corporate demand for wind energy and continued states RPS requirements.”

More: Average US wind price falls to $20 per megawatt-hour

 

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