Prices of wind power generation systems

How much does a wind power system cost?

The installed capital costs for wind power systems vary significantly depending on the maturity of the market and the local cost structure. China and Denmark have the lowest installed capital costs for new onshore projects of between USD 1 300/kW and USD 1 384/kW in 2010.

How much does a wind turbine cost?

The capacity-weighted average installed cost of wind projects built in 2010 in the United States was USD 2 155/kW virtually unchanged from the 2009 figure of USD 2 144/kW in 2009. The initial data for 2011 suggest a slight decline in installed costs, driven by lower turbine costs.

How are wind power costs calculated?

The cost and economic competitiveness of wind power generation were generally calculated with the levelized cost of electricity (LCOE) model, which represents the average cost of power generation during the lifetime [10, , , , ]. As wind capacity expands and technological advancements occur, wind power costs decrease.

What are the capital costs of a wind power project?

The capital costs of a wind power project can be broken down into the following major categories: Source: Blanco, 2009. Wind turbine costs includes the turbine production, transportation and installation of the turbine. Grid connection costs include cabling, substations and buildings.

Will wind turbine costs rise by 2015?

There is even the potential for average installed costs to rise somewhat by 2015 if manufacturing costs in emerging economies start to raise the cost of wind turbines and engineering projects in general, or if the supply situation becomes tighter. The analysis in this section assumes that the average cost of capital for a project is 10%.

Why do wind turbines cost so much?

A detailed analysis of the United States market shows that the installed cost of wind power projects decreased steadily from the early 1980s to 2001, before rising as increased costs for raw materials and other commodities, coupled with more sophisticated wind power systems and supply chain constraints pushed up wind turbine costs (Figure 4.10).