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13 July 2021updated 05 Nov 2021 9:19am

Turbine improvements will drive major cost reductions for wind power – report

Lower capital expenditure, longer lifetimes and higher capacity will drive down the cost of all forms of wind power significantly in Europe by 2050, says Brussels-based trade association WindEurope.

By Energy Monitor Staff

The cost of wind power will decline significantly by 2050, reaching a levelised cost of electricity (LCOE) lower than €53 ($62.88) per megawatt-hour (MWh) across all forms of wind energy, says Brussels-based association WindEurope in a new report.

Free Report
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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.
Engie-wind-turbine-technicians

Technicians from multinational electric utility company Engie enter a windmill to inspect it in France in October 2017. (Photo by Damien Meyer/AFP via Getty Images)

Onshore wind is expected to remain the cheapest form of wind power with an average LCOE of €25/MWh for new installations in Europe by 2050, down from €45/MWh in 2020. By comparison, in 2019, the LCOE for the global solar sector was €48/MWh, according to researchers at BloombergNEF.

Floating offshore wind will remain the most expensive, with an LCOE of €30–53/MWh in 2050, down from €184/MWh today.

Most of the cost reductions are attributed to turbine improvements resulting in lower capital expenditure, longer lifetimes and higher capacity factors, such as access to more wind via taller turbines.

The regulatory framework will play a crucial role in delivering economies of scale and increasing investor confidence, thus reducing financing costs, says WindEurope. The report recommends that the EU simplifies permitting processes and sets additional renewable energy targets in line with the ‘Fit for 55’ goal to reduce greenhouse gas emissions by 55% by 2030.

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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