WI]D P\WER C\ST APPR\ACBES '\SSIL 'DEL PAR­ITY

Element - - Enterprise -

Re­cent re­ports have conl­rmed that the cost of wind-gen­er­ated electricity is lower than al­most all al­ter­na­tives in ]ew Bealand and con­tin­u­ing to come down. Around the world, wind en­ergy is in­creas­ingly cost com­pet­i­tive. ]ovem­ber’s Bloomberg ]ew En­ergy 'inance re­port sug­gests that the av­er­age wind farm will reach cost par­ity with fos­sil fu­els by 0f$#. And ]ew Bealand wind farm per­for­mance is well above av­er­age. The Bloomberg re­port states that de­spite the num­bers, there is still a strong per­cep­tion that wind is an ex­pen­sive form of gen­er­a­tion. The ]ew Bealand Wind En­ergy As­so­ci­a­tion re­ports that in ]ew Bealand is that Long Run Mar­ginal Cost of wind gen­er­a­tion (as low as 0!IGMWH) is ap­proach­ing the short run cost of gas lred gen­er­a­tion, with a gas price of 0Hkgcj. “If Bloomberg’s anal­y­sis is cor­rect we can ex­pect a point in the near fu­ture in ]ew Bealand where new wind farms un­der­cut gas-lred power gen­er­a­tion if the price of gas rises by only a small amount,” says the ]BWEA. Look­ing for­ward, Bloomberg ex­pects on­shore wind farm costs to fall an­other $04 in the next lve years. The Bloomberg press re­lease states “The best wind farms in the world al­ready pro­duce power as eco­nom­i­cally as coal, gas and nu­clear gen­er­a­tors.” And the cost of electricity from wind tur­bines is con­tin­u­ing to come down. Ac­cord­ing to Bloomberg there is what they term a 7% ‘ex­pe­ri­ence curve’ – for ev­ery dou­bling of in­stalled ca­pac­ity around the world there is a 7% re­duc­tion in tur­bine costs. \ver­all costs re­duce more, due to bet­ter designs and im­prov­ing abil­ity in the in­dus­try to make the most of them. Ca­pac­ity fac­tors have im­proved 62% over the past 27 years, mean­ing far more electricity gen­er­ated per MW in­stalled. \per­a­tions and main­te­nance has also de­liv­ered a big cost sav­ing. Putting it all to­gether, Bloomberg cal­cu­lates that the cost of en­ergy has gone down by 14% for ev­ery dou­bling of ca­pac­ity in­stalled around the world – it now stands at EDRL2GMBH (]B0H4). An­other 12% is all that is re­quired to hit par­ity with the av­er­age gas lred CCCT. And as Bloomberg states, “That lgure for gas-lred power ex­cludes the cost of car­bon emit­ted...”

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