Costs

Installation Costs

In 2012, a commercial scale wind turbine cost between about $1.3 million to $2.2 million per MW of wind energy capacity installed. Most of the commercial-scale turbines installed today are 1.5 MW in size. This mean they would cost roughly $3-$4 million installed.  Wind turbines under 100 kilowatts cost roughly $3,000 to $8,000 per kilowatt of capacity. A 10 kilowatt turbine, which is the size needed to power a large home might have an installed cost of $50,000-$80,000 depending on the type of turbine [2].

Electricity Production

Wind turbines are primarily used to generate electricity and are a relatively new method of mass production of electricity. One important consideration when comparing renewable energy sources for electricity production is the levelized cost of the electricity from each source. Electricity from a renewable source will not be viable or sustainable in the market place if it cannot compete with other sources. Even if a source may be more sustainable and less harmful to the environment, it still has to compete in the market and be attractive to consumers. Through years of research and development, wind energy researchers have managed to lower the levelized cost of electricity to the level that it is competitive with natural gas and fossil fuel electricity production [1].

 

As seen in the Levelized Cost for Energy Production Sources, Wind energy has a lower cost per MWh than most resources. This shows that wind is an economically viable source to produce electricity [3].

Primary Author: Ryan Younis

Editor: Kevin McHugh

References

1.  “Data Center – Climate, Energy, and Transportation | EPI.” Data Center – Climate, Energy, and Transportation | EPI. N.p., n.d. Web. 11 Apr. 2014.

2. “How Much Do Wind Turbines Cost?” Welcome to Windustry. N.p., n.d. Web. 03 May 2014.

3. “2013 Wind Energy Installations Stall In US, Surge In China.” CleanTechnica. N.p., n.d. Web. 13 Apr. 2014.