Wind Energy Will Be Cheaper Than Fossil Fuels Within a Decade

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Wind energy is growing fast. While it still accounts for less than 5 percent of the United States’ total electricity mix, wind is by far the biggest source of renewable energy other than hydroelectric dams, and it accounted for 23 percent of new power production capacity built last year. Some experts think wind could provide a fifth of the world’s energy by 2030. But wind in the US is always in a perilous position, thanks to its heavy reliance on a federal tax credit that is routinely attacked in Congress; the subsidy was allowed to expire at the end of last year, and its ultimate fate remains unclear.

Fortunately, wind won’t be subject to the whims of legislators for much longer, according to a new analysis from the Energy Department. The new report found that within a decade, wind will be cost-competitive with fossil fuels like natural gas, even without a federal tax incentive.

From Bloomberg Business:

Cost reductions and technology improvements will reduce the price of wind power to below that of fossil-fuel generation, even after a $23-per-megawatt-hour subsidy provided now to wind farm owners ends, according to a report released Thursday.

“Wind offers a power resource that’s already the most competitive option in many parts of the nation,” Lynn Orr, under secretary for science and energy at the Energy Department, said on a conference call with reporters. “With continued commitment, wind can be the cheapest, cleanest power option in all 50 states by 2050.”

That would be a huge win for slowing climate change. The report finds that it could also lead to billions of dollars of benefits to the American public, from lower monthly electric bills to fewer air-pollution-related deaths.