Benefits of wind energy exceed its cost

The Land-based Wind Energy Report 2021 released by the U.S. Department of Energy states that wind power represented the largest source of U.S. electric-generating capacity additions in 2020 – constituting 42% of all new capacity additions, with the state of Texas maintaining its status as having the most wind energy capacity.  A forecasted decrease in land-based wind installation for 2022 and 2023 is attributed to the scheduled expiration of federal tax credits and anticipated growth of offshore wind.

Health and climate benefits of Wind

In addition to providing statistics and analyzing trends, the Land-based Wind Energy Report 2021 states that “The health and climate benefits of wind are larger than its grid-system value, and the combination of all three far exceeds the levelized cost of wind. Wind reduces emissions of carbon dioxide, nitrogen oxides, and sulfur dioxide, providing public health and climate benefits. Nationally, these benefits averaged $76/MWh. …… almost three times the average LCOE ” (which has fallen to around $33/MWh  nationally).

A second new report from the U.S. Department of Energy is Offshore Wind Market Report: 2021 Edition , which provides detailed information about technology and market trends in the U.S. and globally. The report describes the status of over 200 global operating offshore wind energy projects through December 31, 2020, with an update about the most significant domestic developments and events from January 1, 2020, through May 31, 2021. It also describes projects in various stages of development – stating that global offshore wind energy deployment is expected to accelerate in the future, and citing a forecast by Bloomberg New Energy Finance of a seven-fold increase in global cumulative offshore wind capacity by 2030. In the U.S., the expansion and growth of the offshore wind energy market is  primarily attributed to  increasing state-level procurement targets in the Northeast and mid-Atlantic, and growing infrastructure investments needed to keep pace with development. The Biden Administration’s national target goal of 30-GW-by-2030 goal is also noted (and is described in this White House Fact Sheet from March 2021).  The report estimates that  the average levelized cost of energy (LCOE) of fixed-bottom offshore wind energy installations is now below $95/megawatt-hour (MWh) globally –a decrease ranging from 28-51% between 2014 and 2020. The experts surveyed for the report predict LCOE levels of approximately $56/MWh by 2030, and a range of $44/MWh to $72/MWh by 2050. 

On 9 September, the Global Wind Energy Council will provide more statistics, when it releases its third annual Global Offshore Wind Report 2021.  In the September 3 press release announcing the GWEC 2nd Quarter Report, the Council observed “Overly complex and bureaucratic permitting procedures remain a critical market barrier, which creates high attrition rates for project applications and are slowing down wind power deployment in countries around the world, from Germany to India. To achieve our international climate targets, a sensible and positive regulatory environment needs to be in place to ensure successful procurement and smooth project timelines for both onshore and offshore wind.”  In July, the Council and 25 wind energy company CEO’s sent an Open Letter to G20 Ministers, calling on them to “get serious” about wind energy, and citing the International Energy Agency (IEA) assessment that annual wind deployment must quadruple from 93 GW in 2020 to 390 GW in 2030 to meet a net zero by 2050 scenario. 

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