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Wind - Economics of Wind Energy
Wind-generated electricity has become more economical to produce in the past 10 years, dropping from as much as 30 cents per kilowatt-hour to 2.5 cents to 7 cents, making it more competitive with other energy sources.
Construction costs for wind-power electric generators are considerably higher than those of fossil-fuel plants on a per-megawatt-of-capacity basis.
Construction costs for wind-power electric generators are considerably higher than those of fossil-fuel plants on a per-megawatt-of-capacity basis.
Cost per megawatt of capacity
| Wind | $1.6 million to $1.9 million |
| Natural Gas | $800,000 |
However, the good news is that wind facilities, once constructed, have no fuel costs because the wind is free, and maintenance costs are relatively low.
Another financial incentive in developing wind-energy facilities is the federal Wind Production Tax Credit (PTC). The PTC was first enacted in 1994 and dramatically changed the economics of wind production through a tax incentive to develop and operate wind-generation facilities. It provides a substantial economic benefit that lowers the cost of wind energy for the customer. The PTC has changed the landscape of the wind-generation business in the U.S. and helps promote a sensible energy policy that wisely encourages diversification of energy sources.
Another financial incentive in developing wind-energy facilities is the federal Wind Production Tax Credit (PTC). The PTC was first enacted in 1994 and dramatically changed the economics of wind production through a tax incentive to develop and operate wind-generation facilities. It provides a substantial economic benefit that lowers the cost of wind energy for the customer. The PTC has changed the landscape of the wind-generation business in the U.S. and helps promote a sensible energy policy that wisely encourages diversification of energy sources.
