The cost of wind energy has been decreasing steadily over the years, making it competitive with traditional sources of energy generation. Several factors contribute to the economics of wind energy:
- Technological Advances: Advances in wind turbine technology have significantly increased efficiency and reduced the costs associated with manufacturing, installation, and maintenance. Larger and more efficient turbines can generate more electricity at a lower cost per unit.
- Economies of Scale: As the wind energy industry has grown, there has been an increase in the scale of wind farms. Larger projects benefit from economies of scale, driving down the overall cost of electricity production.
- Decreasing Capital Costs: The initial capital costs of constructing wind farms have been decreasing, making the development of wind farms more financially feasible.
- Competitive Bidding: Many electricity markets, including the Western Australian electricity market, use competitive bidding processes for electricity supply, including energy supplied from wind farms. This approach encourages developers to offer the lowest possible prices to secure contracts, fostering a more cost-effective industry.
- Low Operating Costs: Once a wind farm is operational, the ongoing operating and maintenance costs are relatively low compared to other forms of electricity generation. Additionally, the fuel for wind energy – the wind itself – is free, eliminating fuel costs.
While the overall trend is towards decreasing costs, it’s important to note that the specific costs can vary depending on factors such as project size, location, local wind conditions, and transmission connection.
The decreasing costs and growing community support for wind energy contribute to its attractiveness as a sustainable and economically viable option for power generation.
