NewEnergyNews: Ocean Wind’s Price Getting More Competitive/

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    Friday, February 17, 2017

    Ocean Wind’s Price Getting More Competitive

    Wind costs heading in the right direction…Wind power's competitive position continues to improve despite historically low fossil-fuel prices.

    David Milborrow, 31 January 2017 (Windpower Monthly)

    “…[The 2016 installed costs for offshore wind were] between £4,000/kW and $6,000/kW. This year they range from only $2,100/kW to $5,000/kW…Last year we arrived at a figure of just under $192/MWh as a representative cost of offshore wind electricity generation, assuming a wind speed of 9m/s...[This year, assuming installed costs of $3,000/kW, is] $89.5/MWh, or slightly less than half. Slightly higher wind speeds could push that down to below $80/MWh…At that level, offshore wind is extremely cost-competitive with [the current price range for natural gas-fired electricity generation of between $56/MWh (US) and $71/MWh (UK)], provided a carbon price is applied, and well within the wide range of nuclear generation costs [of around $120/MWh in the UK and around $100/MWh in the U.S. in 2022]… The economic case is impossible to ignore…” click here for more

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