Is wind an economical source of energy?

With all the different energy sources there are a variety of costs to consider to compare each source. Economic factors include the cost of the fuel and price fluctuations, installation and transport costs, and environmental costs.  

For example coal power costs include the mining and transport of coal, hydroelectric power costs include the damming of water ways, and nuclear energy produces harmful long term waste. Wind energy avoids all of these but there are still costs.

The Wind Energy Foundation has done some comprehensive work outlining the economics of wind energy specifically around technological advances and some factors that contribute to the cost of wind energy.

Technological Advances

Since 1980 the cost of wind energy in the United States has declined more than 90 per cent. This is largely due to technological advances that have improved the efficiency of turbines. Technological advances have also improved wind forecast modelling which results in more suitable wind farm locations.

Price per Kilowatt-Hour

The actual consumer cost of wind energy depends on the wind speed, frequency, and when it occurs. Regular, high speed wind produces more power than erratic, weak winds. Economists use the term average capacity to describe the percentage of power produced by a turbine compared to what it could produce if it were always spinning. These factors and more contribute to the price per kWh for wind energy. In the US, long-term wind energy costs average 4 cents per kWh - 50 per cent lower than in 2009.

Windfacts.ca points out US investment firm Lazard studied the economies of wind energy and found it’s the lowest cost option for any new energy supply without subsidies.

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