How much does wind power cost has long been regarded as one of the world’s most prominent issue. From 2008 to 2018, the United States’ cumulative wind energy capacity increased by 15.3% per year, dwarfing all other renewable energy sources except solar energy. Wind energy, with its potential as an inexhaustible and free resource, holds a high economic value. However, other financial elements of wind energy production, such as the cost of materials and manufacturing for constructing a wind energy field, as well as the wind’s intermittency issue, are aspects that must be addressed for the wind to fully realize its potential as a primary source of energy in the future.

Installation Expenses

In the United States, how much does wind power cost? The total capital costs to install a 2.4-MW land-based turbine (the average turbine size installed in 2018) are around $3,528,000, or $1470 per kW. Capital costs for the main turbine components (rotor, nacelle, and tower) account for 68% of this value, the balance of the system (electrical infrastructure, assembly/installation, foundation, etc.) for 22.6%, and financial costs (construction financing cost and contingency fund) for 8.6%. These figures demonstrate the enormous upfront cost of developing a wind farm, particularly for large (>20 M.W.) wind projects.

Recent figures state on average, a standard wind turbine has a power capacity of 2-3 megawatts (MW), with costs typically ranging from $2-4 million. Additionally, annual operation and maintenance expenses amount to approximately $42,000-$48,000, as indicated by research on the operational costs of wind turbines.

Expenditures for Operation and Maintenance

The average yearly operation and maintenance cost for a 2.4-MW land-based turbine in the U.S. is around $105,600, or approximately $44 per kW per year. This figure covers both fixed and variable operation/maintenance costs. These expenses, which are significantly lower than installation costs, underscore the cost-effectiveness of wind energy. This advantage over coal and other fossil fuel sectors, where the majority of costs are attributable to operation and maintenance, bodes well for the future of wind energy.

Intermittency Issue

The most significant impediment to wind energy is that it is intermittent and non-dispatchable. As a result, wind turbines frequently generate excess power at night or during low-demand periods, making storing this electricity for later use extremely difficult. If not used, this surplus energy will have a negative value because it is expensive to create, and there are no purchasers, reducing economic advantages. These expenditures, known as integration costs, are projected to be around or less than $5 per MWh. Fortunately for wind farms, this cost can be mitigated by federal subsidies (in the form of a production and investment tax credit) worth $8/MWh in 2015.

Though federal subsidies can help address this issue, wind energy’s future must thrive without relying heavily on the federal government. To do this, wind farmers have used a variety of ways to store energy and reduce losses. One of these technologies is pumped hydroelectric energy storage (PHES), which uses surplus electricity to move water from a lower reservoir to a higher reservoir. This water can be drawn from higher elevations and used to power turbines when electricity is required. Globally, around 270 PHES facilities are in operation, with power ratings ranging from 30-5000 MW.

How much does wind power cost? The cost of such storage ranges from $600/kW to more than $2000/kW, depending on capacity, location, and grid connection. Another major energy storage technology (and the only one on a vast scale) is compressed air energy storage (CAES), which involves converting electrical energy into high-pressure compressed air that can be released to drive a turbine generator to generate electricity. CAES facilities range from $425 to $450 per kW. Maintenance costs are estimated between $3 and $10 per kWh. There are just two commercial CAES storage facilities today: one in the United States and one in Germany. These vast, commercial-scale CAES installations currently have a power rating of 110 MW to 320 MW.

In conclusion, how much does wind power cost? After analysing the numerous costs associated with wind energy, it is clear that the primary economic negatives of wind energy are the initial cost and the intermittent nature of wind. Interestingly, between the early 1980s and 2018, the average price of wind project installation fell by about $3,330/kW. Furthermore, thanks to federal subsidies, U.S. wind energy is not in much immediate economic danger due to its non-dispatchable nature; however, advancements in PHES and CAES technologies are working to solve this problem before it becomes a severe threat to wind energy’s economic benefits and future growth. If these tendencies continue, wind energy will surely increase rapidly.

Also Read: Harnessing Energy From Wind Power: Innovations And Advancements