Cheap Wind Energy Prices Drive Demand

Wind energy is powering more American companies than ever before. With increased technological advancements, wind energy prices have fallen and continue to be attractive to commercial and utility owners, according to a report released by the U.S. Department of Energy alongside the Electricity Markets & Policy Group at Lawrence Berkeley National Laboratory (Berkeley Lab).

“Wind energy prices – particularly in the central United States – are at rock-bottom levels, with utilities and corporate buyers selecting wind as the low-cost option,” says Berkeley Lab Senior Scientist Ryan Wiser. “Moreover, enabled by technology advancements, wind projects are economically viable in a growing number of locations throughout the United States.”

Prices for newly built wind projects are averaging around 2 cents/kWh, a decrease from the 7 cents/kWh rate in 2009. Wind turbine prices have fallen 20-40% in the last eight years, resulting in significantly decreased installation costs.

Low expenses have stimulated demand for wind energy, particularly from traditional electric utilities and non-utility purchasers like corporations, universities and municipalities.